Yingli (YGE) (JASO) (PWER) (WFR) Jump on SunPower (SPWRA) Deal

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 Yingli Green Energy (NYSE:YGE), JA Solar (NASDAQ:JASO), Power-One Inc (PWER) and MEMC Electronic Materials, Inc. (NYSE:WFR), 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. MEMC Electronic Materials, Inc. closed at $11.83, rising $0.68, or 6.10 percent. Yingli Green Energy ended the session at $12.53, up $0.27, or 2.20 percent. JA Solar closed at $6.85, jumping $0.40, or 6.20 percent. Power-One Inc closed at $8.25, increasing $0.04, or 0.49 percent.