Solar Companies DAQQ (DQ), (JKS), (SOL), (JASO), (STP), (RSOL), (ASTI), (WEST) to Benefit from Japan Nuclear Challenges

The hoopla surrounding the challenges facing the nuclear industry from the earthquake in Japan, which some are attempting to spin as an extremely valuable event for solar companies such as DAQQ New Energy (DQ), JinkoSolar Holding Company (JKS), Renesola (SOL), JA Solar Holdings (JASO), Suntech Power Holdings (STP), Real Goods Solar (RSOL), Ascent Solar Technologies (ASTI) and Akeena Solar (WEST), is just that: spin.

Nothing has changed in the overall nuclear sector as far as the majority of countries still committed to using nuclear plants to generate electricity, other than the usual weenies from Europe and to a lesser extent, the United States.

But that was going to account for very little in the way of nuclear growth, and in the United States, most of it will just be going over existing plans and plants in order to be sure things are as safe as they can be.

Other than that, China is doing something similar, and is simply making sure risk is managed. China has already said it's going to continue on with its nuclear strategy, and they're by far the country with the most nuclear plants scheduled to be built.

Nothing has changed in the solar sector, which will continue to be pressured downward because the socialist countries of Europe can't afford the subsidies as the sovereign debt crisis continues to threaten to end the euro, as well as the European Union itself.

That's not to say investors can't make money in solar if they know what they're doing, just that the idea solar is a viable source of energy in the future is a long way from becoming a reality, if it ever does.

Solar companies will come under pressure for a long time, as there doesn't appear to be any catalyst out there to suggest we're going to be leaving the global recession any time soon, no matter how the mainstream media attempts to spin it.

Daqq New Energy (NYSE:DQ) Should Benefit from Chinese Government Restrictions

Daqq New Energy (NYSE:DQ) should benefit from new restricions of the Chinese government on polysilicon production, which should, at minimum, support polysilicon prices in the short term.

Auriga says, "We reiterate our price target on Buy-rated Daqq following recent press reports of Chinese government mandated restrictions on polysilicon production. The stated goal to reduce pollution and decrease electricity usage should push out marginal suppliers and, at least in the near term, prevent a decline in polysilicon prices when increasing supply should push spot prices lower. We believe DQ meets all of the requirements put forth in the new regulation while continuing production in a more firm price environment. Our research suggests that DQ management was involved with the formation of the new government restriction during the past year, and that the recently announced polysilicon facility destined for production in mid-2012, will also adhere to the new restrictions."

Auriga maintains a "Buy" rating on Daqq New Energy (DQ), which closed Thursday at $13.28, up $0.11, or 0.84 percent. Auriga has a price target on Daqq of $20.

Daqq New Energy (NYSE:DQ) Estimates Lifted on New Guidance

Daqq New Energy (NYSE:DQ) gave updated guidance which resulted in Auriga raising their fourth quarter and full year 2010 estimate on them.

Auriga said, "Daqq's poly plant is running above plan and management was able to positively preannounce Q4 earnings last night. We estimate the plant is running at annual rate greater than 4,500MT, or roughly 200MT above the nameplate capacity of 4,300MT, which enabled production of 930MT to 950MT during Q4; prior guidance was 825MT to 850MT. We are increasing our Q4 and 2010 estimates to account for the updated guidance."

Auriga maintains a 'Buy' on Daqq New Energy, which closed Thursday at $13.50, gaining $2.23, or 19.79 percent. Auriga has a price target of $20 on them.