The announcement Total SA (NYSE:TOT) was going to acquire a 60 percent stake in SunPower Corp. (NASDAQ:SPWRA) gave the solar sector a temporary boost, pushing up the share prices of companies like Trina Solar (NYSE:TSL), Ascent Solar Technologies (NASDAQ:ASTI), ReneSola (NYSE:SOL), Canadian Solar (CSIQ) and Jinko Solar (NYSE:JKS), as expected.
In an extremely volatile sector, solar companies tend to move in unison on news affecting the industry, and that did happen, although investors shouldn't get too excited about it, other than trying to figure out whether or not another solar company will be acquired.
Since that's a guessing game, it's more gambling than it is investing, but that won't stop some from throwing money at the risky sector.
Solar will continue to struggle because there really isn't a market for it, other than governments around the world attempting to spin it as an alternative energy source. At best it'll be a very expensive source of energy that is unpredictable as to supply, and will only add a tiny bit of energy to the grid.
Spin it as they will, the media can't change that fact, and countries that had supported the extremely expensive sector are starting to pull back as they can no longer afford it. Germany and Italy are two examples; especially Italy in the shorter term.
For those guessing correctly, or even if there is a move toward energy companies buying up solar (not a surety by any means), there is money to be made in solar, but it's far too volatile to commit serious capital to.
SunPower closed Friday at $21.69, gaining $5.57, or 34.55 percent. Jinko Solar closed at $27.15, rising $1.24, or 4.79 percent. Ascent Solar Technologies ended the session at $1.61, up $0.03, or 1.90 percent. Trina Solar closed at $28.49, jumping $0.58, or 2.08 percent. ReneSola closed at $9.18, increasing $0.52, or 6.00 percent. Canadian Solar ended at $10.80, up $0.50, or 4.85 percent.
Of the major solar companies, only Suntech closed down Friday, ended the day at $8.97, down $0.08, or 0.88 percent.
Your solar stupidity hits new highs every time you post sth about solar.i REALLY wonder how Google allows you to post all this clueless crap.
ReplyDeleteYou must not be that ignorant.
You must short the sector.
I am sure you were burned the last couple of days.
The big burn though has not started yet.The price increases in this sector will burn you and your house totally.
If you are also bothered from some million $$ subsidies in Germany or Italy to some solar companies, why are NOT you bothered by the BILLION $$$$ governmental subsidies to the oil companies for a decade now ?
Obama revealed the 40 (!!!) BILLION $$$$ subsidies again at his latest speech last Sunday.
Solar technology is the future and the solar companies should be treated with PREMIUM pe of 30 actually similar to the technology stocks of Nasdaq.
Read below about these BILLION $$$$ subsidies to the oil companies:
Obama pumps plan to develop renewable energy
Obama says developing renewable energy sources is 1 answer to rising gasoline, oil prices
President Barack Obama waves upon his arrival at Andrews Air Force Base, Md., Friday, April 22, 2011.
(AP Photo/Luis M. Alvarez)
Darlene Superville, Associated Press, On Saturday April 23, 2011, 4:48 pm EDT
WASHINGTON (AP) -- President Barack Obama says one answer to high gasoline prices is to spend money developing renewable energy sources.
"That's the key to helping families at the pump and reducing our dependence on foreign oil" in the long term, he said Saturday in his weekly radio and Internet address.
Obama raises the issue of rising fuel prices during almost every public appearance and says that he understands the strain higher fuel costs are putting on some family budgets.
He announced Thursday during an event in Reno, Nev., that the Justice Department will begin looking for cases of fraud or manipulation in the oil markets, even though Attorney General Eric Holder suggested a variety of legal reasons may be behind the surging gas prices.
As he has before, Obama said Saturday there is no "silver bullet" that will slash gas prices immediately. But he said there are things government can do to help make a difference in the long term. They also include boosting U.S. oil production, rooting out any illegal activity by traders and speculators and ending $4 billion in annual taxpayer subsidies to oil and gas companies.
"Instead of subsidizing yesterday's energy sources, we need to invest in tomorrow's," Obama said.
In the weekly Republican address, Nebraska Sen. Mike Johanns focused on jobs and said lawmakers who are serious about creating them need to cut spending and the bureaucracy that he and others say burden small businesses and keep them from hiring more.
"If everyone is serious about job creation, in addition to reducing the debt, let's reduce burdensome regulations that serve no purpose other than to insert more government into the lives of citizens," he said. "We can't tie up small businesses in needless red tape and regulations and expect them to create jobs and boost the economy."
Gotta agree, and every article is more or less the same. Quite the joke.
ReplyDeleteWith Kind regards form Germany,
CW
Get off the Obama bandwagon and realize solar will not solve any oil problems we may have.. like it or not coal and oil are the best resources for us to use. Drill Here Drill NOW!!
ReplyDelete