There is no doubt the move by Total SA (NYSE:TOT) to acquire a majority stake in U.S. solar company SunPower Corp. (NASDAQ:SPWRA) will spur the industry, as it will generate the idea of who may be next to be infused with cash, such as First Solar (Nasdaq:FSLR), Suntech Power Holdings (NYSE:STP), Yingli Green Energy (NYSE:YGE), Trina Solar (NYSE:TSL) and GT Solar International (SOLR).
It must be kept in mind that the China-based solar companies already have access to capital, so it probably won't affect them as much, although they'll more than likely be pulled up with the rest of the sector over the short term, based on speculation.
Analysts were surprised by the decision of Total, as the solar industry, if you can call it that, is pressured by slow sales, rising costs of raw materials, financing, no real market for the product, and shrinking government support.
If it wasn't for government subsidies there would be no solar market, and the general population couldn't care less about solar, contrary to media allusions to that effect.
That's not to say you can't make money in the industry, as it's subject to wild swings because of it being a media darling and even when it's debatable as to the validity of the industry as a whole, it won't stop the media from hyping it up and causing the share prices of solar companies to jump, as they will on the news of the deal by Total for SunPower.
The analysts are surprised b/c they are morons with no vision. Total is better positioned than anyone to know that the world has exhausted cheap oil... the aquisition speaks for itself.
ReplyDeleteHow can you pretend that iquote" The general public couldn't care less about solar"?
ReplyDeleteWhat an odd thing to say....
Do your homework, andlt's see where we stand in let's say 5 years...
Cheers!
Of course the semi-anonymous author feels this way!! Just look at the title of the blog!! Wonder when the bottom is gonna fall out of this stuff, again!
ReplyDelete