Yingli Green Energy (NYSE:YGE), as with most companies in the solar sector, has been experiencing a wild ride over the last year, and is now trading lower than it did a year ago, with wild fluctuations.
The one thing Yingli has going for it, assuming it will continue to be the result in the future, is the 70 percent in panel contracts it won in the Chinese domestic market.
But there are several factors are in play surrounding the solar sector, with most being negative.
The only element that offers some strength to the industry is what, if any, response will there be from countries as a result of the media coverage of the nuclear industry because of the earthquake in Japan.
In reality it doesn't look like over the long term it will have an impact, as the need for energy hasn't changed, and the silly idea solar or wind can in any way make a significant impact at this time can't be taken seriously.
Other than that, most of the news in the solar industry is largely negative.
The ongoing high price of energy produced by solar continues to be the most negative, and while there are obvious calls for companies to lower their prices, that's much easier said than done, and it'll get harder as cash-strapped and debt-laden nations cut back on their subsidies, without which there would be no solar industry; speaking to the extreme weakness and vulnerability it faces as the market isn't generating demand, but governments are, making solar a very risky proposition going forward.
A Reuters report, citing unnamed sources, said China is going to double its installation goal over the next five years for solar, a dubious assertion at best, and unproven as to its veracity.
China has already publicly stated it's going to continue on with its nuclear strategy, even with the relatively irrelevant situation in Japan.
It's not irrelevant because of those that may be harmed from valiantly fighting to reduce the damage from radioactive release, but because it has been far over a century since Japan had experienced a earthquake of that magnitude, making it a situation that could never be planned for or necessarily expected to happen more than once in a couple of generations.
So to make decisions and plans based on those times of anomalies isn't something leaders will do, because it isn't realistic, as actions will prove out.
Solar isn't going to gain because of the earthquake in Japan, contrary to the rhetoric governments and politicians are employing at this time.
Think of how people would respond if they aren't allowed to have needed energy. That guarantees nuclear will be a key part of the energy future. Period!
All the hoopla about renewable energy and other dishonest assertions will quietly go away once the situation in Japan fades out of memory, and the reality of energy needs today kick in.
Solar will continue to be a risky and unpredictable sector for years, always getting some positive sentiment when negative news appears to strengthen it, only to fall back again when the emotional response falls by the wayside.
Consequently, Yingli Green Energy, along with its peers, will continue to be in for a rough ride as they are dependent on factors like demand, which is completely out of there control, and not on market forces. Government subsidies and decisions are the rule in solar; a fickle scenario at best.
Yingli Green Energy closed Thursday at $12.90, gaining $0.09, or 0.70 percent.
Showing posts with label Japan Nuclear. Show all posts
Showing posts with label Japan Nuclear. Show all posts
Friday, April 1, 2011
Trina Solar's (TSL) Rise an Anomaly, or Sustainable?
Trina Solar jumped 4 percent recently, coming close to a share price it hasn't reached since January. What remains to be seen is whether this move is sustainable or not. It appears it isn't, even though the media and pundits in love with "green" technology are attempting to make it appear to be.
Several factors are in play surrounding the solar sector, with most being negative.
The only element that offers some strength to the industry is what, if any, response will there be from countries as a result of the media coverage of the nuclear industry because of the earthquake in Japan.
In reality it doesn't look like over the long term it will have an impact, as the need for energy hasn't changed, and the silly idea solar or wind can in any way make a significant impact at this time can't be taken seriously.
Other than that, most of the news in the solar industry is negative.
The continuous high price of energy produced produced by solar continues to be the most negative, and while there are obvious calls for companies to lower prices, that's much easier said than done, and it'll get harder as cash-strapped and debt-laden nations cut back on their subsidies, without which there would be no solar industry, speaking to the extreme weakness and vulnerability it faces, as the market isn't generating demand, but governments are, making solar a very risky proposition indeed.
One report, this one from Reuters, cited unnamed sources saying China is going to double its installation goal over the next five years for solar, a dubious assertion at best, and unproven as to its veracity.
China has already publicly stated it's going to continue on with its nuclear strategy, even with the relatively irrelevant situation in Japan.
It's not irrelevant because of those that may be harmed from valiantly fighting to reduce the damage from radioactive release, but because it has been far over a century since Japan had experienced a earthquake of that magnitude, making it a situation that could never be planned for or necessarily expected to happen more than once in a couple of generations.
So to make decisions and plans based on those times of anomalies isn't something leaders will do, because it isn't realistic, as actions will prove out.
Solar isn't going to gain because of the earthquake in Japan, contrary to the rhetoric governments and politicians are employing at this time.
Think of how people would respond if they aren't allowed to have needed energy. That guarantees nuclear will be a key part of the energy future. Period!
All the hoopla about renewable energy and other dishonest assertions will quietly go away once the situation in Japan fades out of memory, and the reality of energy needs today kick in.
Solar will continue to be a risky and unpredictable sector for years, always getting some positive sentiment when negative news appears to strengthen it, only to fall back again when the emotional response falls by the wayside.
So Trina Solar, along with its peers, will continue to be in for a rough ride as they are dependent on factors like demand which is completely out of there control and not dependent on market forces, but government subsidies and decisions; a fickle scenario at best.
Trina Solar closed Thursday at $30.12, gaining $0.48, or 1.62 percent.
Several factors are in play surrounding the solar sector, with most being negative.
The only element that offers some strength to the industry is what, if any, response will there be from countries as a result of the media coverage of the nuclear industry because of the earthquake in Japan.
In reality it doesn't look like over the long term it will have an impact, as the need for energy hasn't changed, and the silly idea solar or wind can in any way make a significant impact at this time can't be taken seriously.
Other than that, most of the news in the solar industry is negative.
The continuous high price of energy produced produced by solar continues to be the most negative, and while there are obvious calls for companies to lower prices, that's much easier said than done, and it'll get harder as cash-strapped and debt-laden nations cut back on their subsidies, without which there would be no solar industry, speaking to the extreme weakness and vulnerability it faces, as the market isn't generating demand, but governments are, making solar a very risky proposition indeed.
One report, this one from Reuters, cited unnamed sources saying China is going to double its installation goal over the next five years for solar, a dubious assertion at best, and unproven as to its veracity.
China has already publicly stated it's going to continue on with its nuclear strategy, even with the relatively irrelevant situation in Japan.
It's not irrelevant because of those that may be harmed from valiantly fighting to reduce the damage from radioactive release, but because it has been far over a century since Japan had experienced a earthquake of that magnitude, making it a situation that could never be planned for or necessarily expected to happen more than once in a couple of generations.
So to make decisions and plans based on those times of anomalies isn't something leaders will do, because it isn't realistic, as actions will prove out.
Solar isn't going to gain because of the earthquake in Japan, contrary to the rhetoric governments and politicians are employing at this time.
Think of how people would respond if they aren't allowed to have needed energy. That guarantees nuclear will be a key part of the energy future. Period!
All the hoopla about renewable energy and other dishonest assertions will quietly go away once the situation in Japan fades out of memory, and the reality of energy needs today kick in.
Solar will continue to be a risky and unpredictable sector for years, always getting some positive sentiment when negative news appears to strengthen it, only to fall back again when the emotional response falls by the wayside.
So Trina Solar, along with its peers, will continue to be in for a rough ride as they are dependent on factors like demand which is completely out of there control and not dependent on market forces, but government subsidies and decisions; a fickle scenario at best.
Trina Solar closed Thursday at $30.12, gaining $0.48, or 1.62 percent.
SunPower's (SPWRA) Future Performance
SunPower's (SPWRA) hasn't had quite the huge swings in price over the last year as some of its solar peers have, but it still is trading lower than it did a year ago, with few catalysts that will change that, other than hopes Italy will follow through on promises to continue subsidies going forward.
Yet there are a number of factors in play surrounding the solar sector, with most being negative.
The only catalyst that offers some strength to the industry is what, if any, response will there be from countries as a result of the media coverage of the nuclear industry because of the earthquake in Japan.
In reality it doesn't look like over the long term it will have an impact, as the need for energy hasn't changed, and the silly idea solar or wind can in any way make a significant impact at this time can't be taken seriously.
Other than that, most of the news in the solar industry is largely negative.
The ongoing high price of energy produced by solar continues to be the most negative, and while there are obvious calls for companies to lower their prices, that's much easier said than done, and it'll get harder as cash-strapped and debt-laden nations cut back on their subsidies, without which there would be no solar industry; speaking to the extreme weakness and vulnerability it faces as the market isn't generating demand, but governments are, making solar a very risky proposition going forward.
A Reuters report, citing unnamed sources, said China is going to double its installation goal over the next five years for solar, a dubious assertion at best, and unproven as to its veracity.
China has already publicly stated it's going to continue on with its nuclear strategy, even with the relatively irrelevant situation in Japan.
It's not irrelevant because of those that may be harmed from valiantly fighting to reduce the damage from radioactive release, but because it has been far over a century since Japan had experienced a earthquake of that magnitude, making it a situation that could never be planned for or necessarily expected to happen more than once in a couple of generations.
So to make decisions and plans based on those times of anomalies isn't something leaders will do, because it isn't realistic, as actions will prove out.
Solar isn't going to gain because of the earthquake in Japan, contrary to the rhetoric governments and politicians are employing at this time.
Think of how people would respond if they aren't allowed to have needed energy. That guarantees nuclear will be a key part of the energy future. Period!
All the hoopla about renewable energy and other dishonest assertions will quietly go away once the situation in Japan fades out of memory, and the reality of energy needs today kick in.
Solar will continue to be a risky and unpredictable sector for years, always getting some positive sentiment when negative news appears to strengthen it, only to fall back again when the emotional response falls by the wayside.
Consequently, SunPower, along with its competitors, will continue to be in for a difficult time as they are dependent on factors like demand, which is completely out of there control, and not on market forces. Government subsidies and decisions are the rule in solar; a fickle scenario at best.
SunPower closed Thursday at $17.14, gaining $0.05, or 0.29 percent.
Yet there are a number of factors in play surrounding the solar sector, with most being negative.
The only catalyst that offers some strength to the industry is what, if any, response will there be from countries as a result of the media coverage of the nuclear industry because of the earthquake in Japan.
In reality it doesn't look like over the long term it will have an impact, as the need for energy hasn't changed, and the silly idea solar or wind can in any way make a significant impact at this time can't be taken seriously.
Other than that, most of the news in the solar industry is largely negative.
The ongoing high price of energy produced by solar continues to be the most negative, and while there are obvious calls for companies to lower their prices, that's much easier said than done, and it'll get harder as cash-strapped and debt-laden nations cut back on their subsidies, without which there would be no solar industry; speaking to the extreme weakness and vulnerability it faces as the market isn't generating demand, but governments are, making solar a very risky proposition going forward.
A Reuters report, citing unnamed sources, said China is going to double its installation goal over the next five years for solar, a dubious assertion at best, and unproven as to its veracity.
China has already publicly stated it's going to continue on with its nuclear strategy, even with the relatively irrelevant situation in Japan.
It's not irrelevant because of those that may be harmed from valiantly fighting to reduce the damage from radioactive release, but because it has been far over a century since Japan had experienced a earthquake of that magnitude, making it a situation that could never be planned for or necessarily expected to happen more than once in a couple of generations.
So to make decisions and plans based on those times of anomalies isn't something leaders will do, because it isn't realistic, as actions will prove out.
Solar isn't going to gain because of the earthquake in Japan, contrary to the rhetoric governments and politicians are employing at this time.
Think of how people would respond if they aren't allowed to have needed energy. That guarantees nuclear will be a key part of the energy future. Period!
All the hoopla about renewable energy and other dishonest assertions will quietly go away once the situation in Japan fades out of memory, and the reality of energy needs today kick in.
Solar will continue to be a risky and unpredictable sector for years, always getting some positive sentiment when negative news appears to strengthen it, only to fall back again when the emotional response falls by the wayside.
Consequently, SunPower, along with its competitors, will continue to be in for a difficult time as they are dependent on factors like demand, which is completely out of there control, and not on market forces. Government subsidies and decisions are the rule in solar; a fickle scenario at best.
SunPower closed Thursday at $17.14, gaining $0.05, or 0.29 percent.
Thursday, March 31, 2011
Hess (HES) (CNX) (OXY) Shares Rise as Energy Surges
Shares of Hess (NYSE:HES) Consol Energy (NYSE:CNX) and Occidental Petroleum (NYSE:OXY) are all jumping today as the oil price reached its highest level since 2008 and uncertainty surrounding nuclear because of the Japan earthquake disaster has other segments like coal and natural gas looking to increase in demand.
The price of oil continues to rise on the ongoing conflict in Libya, which has pushed the price per barrel past $106 today.
Natural gas prices are also expected to start rising, as they stand at lows because of the large amount of supply. That could level off again as the events around the world settle down.
Hess was trading at $85.35, gaining $1.54, or 1.84 percent, as of 12:19 PM EDT. Consol was trading at $54.45, up $1.14, or 2.14 percent. Occidental was at $105.15, rising $1.39, or 1.34 percent.
The price of oil continues to rise on the ongoing conflict in Libya, which has pushed the price per barrel past $106 today.
Natural gas prices are also expected to start rising, as they stand at lows because of the large amount of supply. That could level off again as the events around the world settle down.
Hess was trading at $85.35, gaining $1.54, or 1.84 percent, as of 12:19 PM EDT. Consol was trading at $54.45, up $1.14, or 2.14 percent. Occidental was at $105.15, rising $1.39, or 1.34 percent.
Wednesday, March 30, 2011
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.
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.
Monday, March 28, 2011
Attack of the Worst-Case-Scenario Supporters
As the occasional disaster hits the news cycle and the mainstream media offers its support to its cohorts, the radical environmentalists, we are seeing what is being identified as expanding the boundaries of the former worst-case-scenario measures and putting in place even more stringent ones, which will continue to harm numerous industries, and make them even more costly to operate, which is especially damaging in energy.
The latest is of course the earthquake in Japan, which hadn't happened at that level for well over 100 years. Now talk is some are attempting to increase the already costly worst-case-scenario parameters in order to allegedly keep what has happened in Japan from not happening again, even though we are still in the middle of the narrative and have yet to know or understand the extent of the damage.
This has happened in the past when coal mines experience an explosion causing deaths of workers, as well as in the case of the extremely rare occurrences of oil spills, such as with BP (NYSE:BP).
Now we're not talking here about improving the industry and its practices, everyone is for that. What we're talking about is the attempt to create a perfect world where nothing could possibly go wrong with technology and the things mankind makes. It's Utopian and not a worthy goal, pushing up the costs of doing business prohibitively and also raising the cost of energy or other products produced by those companies and transferring them to consumers.
This is why there is already a growing call for slowing down or ending the nuclear energy sector, as its opponents see this as an opportunity to do it some damage.
The bottom line is while we strive to do the best we can in relationship to safety and making improvements, we can't be perfect, and we can't manage that with which we have no control. It's doubtful anything could have kept the nuclear reactor in Japan from being challenged by an unprecedented earthquake. What do we do next, plan for an earthquake of 11 on the Richter scale? What would that cost? Would nuclear be viable at that point?
We live in a world of scarcity. We must build things that could cause harm to resist the most they can at prices consumers can afford.
After all, an estimated 27,000 or more are dead or missing from the Japan earthquake and tsunami, far more than will be harmed from any problems related to the nuclear accident, which should be relatively few.
No matter how well something is made or the safety precautions put in place, there will always be risk associated with it. To attempt to create products around an unrealistic worst-case-scenario with no or little loss of life as the result, while an admirable goal, isn't a realistic one.
Being alive is a risk, and the huge numbers of people killed annually in auto wrecks aren't causing people to call for the end of driving. Sure improvements will be made, but even here, with the ignorant call for the use of lighter materials in vehicles so they reach mpg standards will result in even more deaths. But somehow this predictable and inevitable carnage is considered acceptable.
That means there are agendas behind all of this, and we need to cautiously watch this new buzzword of best-case-scenario, as it's already being used by those attempting to force the nonsensical and ineffective solar and wind energy upon us, even when in the case of wind turbines they kill millions of bats and birds as well, far beyond the relatively few killed in the BP (NYSE:BP) oil spill.
The latest is of course the earthquake in Japan, which hadn't happened at that level for well over 100 years. Now talk is some are attempting to increase the already costly worst-case-scenario parameters in order to allegedly keep what has happened in Japan from not happening again, even though we are still in the middle of the narrative and have yet to know or understand the extent of the damage.
This has happened in the past when coal mines experience an explosion causing deaths of workers, as well as in the case of the extremely rare occurrences of oil spills, such as with BP (NYSE:BP).
Now we're not talking here about improving the industry and its practices, everyone is for that. What we're talking about is the attempt to create a perfect world where nothing could possibly go wrong with technology and the things mankind makes. It's Utopian and not a worthy goal, pushing up the costs of doing business prohibitively and also raising the cost of energy or other products produced by those companies and transferring them to consumers.
This is why there is already a growing call for slowing down or ending the nuclear energy sector, as its opponents see this as an opportunity to do it some damage.
The bottom line is while we strive to do the best we can in relationship to safety and making improvements, we can't be perfect, and we can't manage that with which we have no control. It's doubtful anything could have kept the nuclear reactor in Japan from being challenged by an unprecedented earthquake. What do we do next, plan for an earthquake of 11 on the Richter scale? What would that cost? Would nuclear be viable at that point?
We live in a world of scarcity. We must build things that could cause harm to resist the most they can at prices consumers can afford.
After all, an estimated 27,000 or more are dead or missing from the Japan earthquake and tsunami, far more than will be harmed from any problems related to the nuclear accident, which should be relatively few.
No matter how well something is made or the safety precautions put in place, there will always be risk associated with it. To attempt to create products around an unrealistic worst-case-scenario with no or little loss of life as the result, while an admirable goal, isn't a realistic one.
Being alive is a risk, and the huge numbers of people killed annually in auto wrecks aren't causing people to call for the end of driving. Sure improvements will be made, but even here, with the ignorant call for the use of lighter materials in vehicles so they reach mpg standards will result in even more deaths. But somehow this predictable and inevitable carnage is considered acceptable.
That means there are agendas behind all of this, and we need to cautiously watch this new buzzword of best-case-scenario, as it's already being used by those attempting to force the nonsensical and ineffective solar and wind energy upon us, even when in the case of wind turbines they kill millions of bats and birds as well, far beyond the relatively few killed in the BP (NYSE:BP) oil spill.
Friday, March 25, 2011
Alpha Natural (NYSE:ANR), International Coal (NYSE:ICO), Peabody Energy (NYSE:BTU) Benefit from Japan's Nuclear Issues
Coal miners have been getting a big boost because of rising coal prices, and Alpha Natural (NYSE:ANR), International Coal (NYSE:ICO) and Peabody Energy (NYSE:BTU) have been among the big beneficiaries, and should bet an even bigger boost because of the demand created from the nuclear problems as a result of the Japan earthquake.
"Coal stocks have generally performed very well in the last six months. This is no surprise, as global coal prices, both thermal and metallurgical, are reaching multiyear highs. We think this momentum will continue in the coming year," said Morningstar.
"The coal industry has benefited from two relatively unlikely events in the last few months. First, in late 2010, torrential flooding in Australia severely disrupted metallurgical coal shipments out of Queensland. As Australia is a linchpin of the global coal trade, this sent Asian coal prices soaring to levels unseen since 2008. Metallurgical coal prices in particular jumped perhaps 40% to over $300 per ton.
"Then, a giant earthquake and tsunami plowed into Japan, severely damaging the Fukushima nuclear power plant. Although the Japanese authorities seem to have the situation under control, the near-meltdown at the plant shook the world's confidence in nuclear power to its core. In the days since the disaster, China temporarily halted its ambitious reactor building program, and Germany peremptorily shut down its pre-1980 plants. Regulators from the United States and Japan are also scrutinizing plant safety and may mandate additional safeguards and increased inspections going forward.
"In the medium term, damage to Japanese nuclear power will slightly increase demand for thermal coal. However, the most profound consequences will be the long-term impact on the global energy mix. All of the upcoming challenges to nuclear power will diminish its contribution to world electricity generation. The shortfall will have to be made up somewhere, and one of the big sources is coal."
That last comment about the diminishing of nuclear power to to generating electricity is ridiculous in my view. No one but the some of those in the developed world have even made comments they're going to change nuclear policies. China and other Asian countries, while performing the obligatory inspections to ensure safe nuclear power, has already said they're going to continue their focus and strategy of using nuclear as a big part of its energy production. Nothing has changed that.
Coal is more likely to be an increasing part of the generation of electricity because of the irrelevance of wind and solar power, which is still a nonsensical and irrelevant energy source, which are extremely limited in being effective and consistent. The price for solar also remains astronomical and countries can't afford to subsidize the sector any longer and are pulling support out from underneath it.
Other coal companies which will strongly benefit from rising prices and increasing demand are Peabody Energy (NYSE:BTU), Arch Coal (NYSE:ACI) and Cloud Peak Energy (NYSE:CLD).
Source
"Coal stocks have generally performed very well in the last six months. This is no surprise, as global coal prices, both thermal and metallurgical, are reaching multiyear highs. We think this momentum will continue in the coming year," said Morningstar.
"The coal industry has benefited from two relatively unlikely events in the last few months. First, in late 2010, torrential flooding in Australia severely disrupted metallurgical coal shipments out of Queensland. As Australia is a linchpin of the global coal trade, this sent Asian coal prices soaring to levels unseen since 2008. Metallurgical coal prices in particular jumped perhaps 40% to over $300 per ton.
"Then, a giant earthquake and tsunami plowed into Japan, severely damaging the Fukushima nuclear power plant. Although the Japanese authorities seem to have the situation under control, the near-meltdown at the plant shook the world's confidence in nuclear power to its core. In the days since the disaster, China temporarily halted its ambitious reactor building program, and Germany peremptorily shut down its pre-1980 plants. Regulators from the United States and Japan are also scrutinizing plant safety and may mandate additional safeguards and increased inspections going forward.
"In the medium term, damage to Japanese nuclear power will slightly increase demand for thermal coal. However, the most profound consequences will be the long-term impact on the global energy mix. All of the upcoming challenges to nuclear power will diminish its contribution to world electricity generation. The shortfall will have to be made up somewhere, and one of the big sources is coal."
That last comment about the diminishing of nuclear power to to generating electricity is ridiculous in my view. No one but the some of those in the developed world have even made comments they're going to change nuclear policies. China and other Asian countries, while performing the obligatory inspections to ensure safe nuclear power, has already said they're going to continue their focus and strategy of using nuclear as a big part of its energy production. Nothing has changed that.
Coal is more likely to be an increasing part of the generation of electricity because of the irrelevance of wind and solar power, which is still a nonsensical and irrelevant energy source, which are extremely limited in being effective and consistent. The price for solar also remains astronomical and countries can't afford to subsidize the sector any longer and are pulling support out from underneath it.
Other coal companies which will strongly benefit from rising prices and increasing demand are Peabody Energy (NYSE:BTU), Arch Coal (NYSE:ACI) and Cloud Peak Energy (NYSE:CLD).
Source
Monday, March 21, 2011
Nokia's (NOK) 4th Quarter Outlook Remains the Same
Nokia (NYSE:NOK) said today it's still taking stock of the impact the earthquake and tsunami may have on the company, although concerning the fourth quarter they said there should be no changes to the financial outlook of the company.
The company did say there could be some temporary disruption of its Devices & Services unit. "Nokia expects some disruption to the ability of its Devices & Services unit to supply a number of products due to the currently anticipated industry-wide shortage of relevant components and raw materials sourced from Japan. However, Nokia does not expect any material impact on its Q1 2011 results due to this event."
Nokia was trading at $8.39, gaining $0.11, or 1.33 percent, as of 12:36 PM EDT.
The company did say there could be some temporary disruption of its Devices & Services unit. "Nokia expects some disruption to the ability of its Devices & Services unit to supply a number of products due to the currently anticipated industry-wide shortage of relevant components and raw materials sourced from Japan. However, Nokia does not expect any material impact on its Q1 2011 results due to this event."
Nokia was trading at $8.39, gaining $0.11, or 1.33 percent, as of 12:36 PM EDT.
Uranium (CCJ)(URZ)(DNN)(URG)(URRE)(UEC) Sees Big Rebound Friday
Uranium companies exploded upward Friday, taking back much of the losses after temporary concerns over uranium demand in light of possible slowdown in the nuclear industry.
Shares of Ur Energy Inc. (AMEX:URG), Uranium Resources, Inc. (Nasdaq:URRE), Uranium Energy Corp. (AMEX:UEC), Cameco Corp. (NYSE:CCJ), Uranerz Energy Corp. (AMEX:URZ) and Denison Mines Corp. (AMEX:DNN) up all soared on the day.
Those bold and wise enough to pour their money into the companies after the sell off have made a lot of money, as the stocks were considered oversold as most countries reiterated their commitment to a nuclear strategy to help meet energy needs.
Denison closed Friday at $2.61, gaining $0.19, or 7.85 percent. Uranerz Energy Corp. closed at $3.10, up $0.23, or 8.01 percent. Cameco closed at $29.40, up $1.30, or 4.63 percent. Uranium Energy Corp. ended the day at $4.28, gaining $0.44, or 11.46 percent. Uranium Resources closed at $2.17, rising $0.54, or 33.13 percent. Ur Energy Inc. closed the session at $1.70, up $0.26, or 18.06 percent.
Shares of Ur Energy Inc. (AMEX:URG), Uranium Resources, Inc. (Nasdaq:URRE), Uranium Energy Corp. (AMEX:UEC), Cameco Corp. (NYSE:CCJ), Uranerz Energy Corp. (AMEX:URZ) and Denison Mines Corp. (AMEX:DNN) up all soared on the day.
Those bold and wise enough to pour their money into the companies after the sell off have made a lot of money, as the stocks were considered oversold as most countries reiterated their commitment to a nuclear strategy to help meet energy needs.
Denison closed Friday at $2.61, gaining $0.19, or 7.85 percent. Uranerz Energy Corp. closed at $3.10, up $0.23, or 8.01 percent. Cameco closed at $29.40, up $1.30, or 4.63 percent. Uranium Energy Corp. ended the day at $4.28, gaining $0.44, or 11.46 percent. Uranium Resources closed at $2.17, rising $0.54, or 33.13 percent. Ur Energy Inc. closed the session at $1.70, up $0.26, or 18.06 percent.
Apple (AAPL) iPad Has 2-3 Week of Components Left
The immensely popular Apple (NASDAQ:AAPL) reportedly only has, at best, 3 weeks of components left to produce the tablet unless something changes in that time. It could be as low as 2 weeks of components left, according to a DigiTimes report.
If Japan doesn't turn things around quickly, production on the iPad will come to a halt unless alternative supplies are found.
Also at risk is Apple's iPhone, which, along with the iPad, could have production shortage through the June quarter, concluded Analysts at Piper Jaffray.
Apple closed Friday at $330.67, down $3.97, or 1.19 percent.
If Japan doesn't turn things around quickly, production on the iPad will come to a halt unless alternative supplies are found.
Also at risk is Apple's iPhone, which, along with the iPad, could have production shortage through the June quarter, concluded Analysts at Piper Jaffray.
Apple closed Friday at $330.67, down $3.97, or 1.19 percent.
GM (GM) Slashing Spending After Japan Disruptions
General Motors announced over the weekend its going to cut spending across the company they deem unnecessary to give them room to determine the extent of the disruptions from the natural disasters in Japan.
The move will help the automaker preserve cash as it deals with the financial implications from shortages of parts made in Japan, a company spokesman said. The cost-cutting effort, which includes travel, took effect last week and will be in place for an undetermined period.
The news follows General Motors Corp.'s announcement Friday that two of three shifts will be canceled at a plant in Eisenach, Germany on Monday and Tuesday. Another plant in Zaragoza, Spain will remain closed Monday. The plants produce the Corsa compact car.
In the U.S., GM said Thursday it will halt production at its pickup plant in Shreveport, Louisiana, this week.
"The whole industry is still in the process of figuring out what the implications are from the disaster in Japan," said GM spokesman Klaus-Peter Martin.
GM closed Friday at $31.85, gaining $0.41, or 1.30 percent.
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The move will help the automaker preserve cash as it deals with the financial implications from shortages of parts made in Japan, a company spokesman said. The cost-cutting effort, which includes travel, took effect last week and will be in place for an undetermined period.
The news follows General Motors Corp.'s announcement Friday that two of three shifts will be canceled at a plant in Eisenach, Germany on Monday and Tuesday. Another plant in Zaragoza, Spain will remain closed Monday. The plants produce the Corsa compact car.
In the U.S., GM said Thursday it will halt production at its pickup plant in Shreveport, Louisiana, this week.
"The whole industry is still in the process of figuring out what the implications are from the disaster in Japan," said GM spokesman Klaus-Peter Martin.
GM closed Friday at $31.85, gaining $0.41, or 1.30 percent.
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Deere (DE), AIG (AIG) Hurt by Japan Earthquake
Although disparate companies, Deere (NYSE:DE) and AIG (NYSE:AIG) both said the earthquake and tsunami in Japan will have a negative impact on them.
Deere said they will have delays with its excavators in direct connection to the Japan disaster, according to a regulatory filing.
American International Group Inc. said they see the Japan crisis, and other events in the first quarter, will end up costing them at close to $1 billion.
Deere & Company closed Friday at $90.10, gaining $0.72, or 0.81 percent. AIG closed at $34.95, down $0.75, or 2.10 percent.
Deere said they will have delays with its excavators in direct connection to the Japan disaster, according to a regulatory filing.
American International Group Inc. said they see the Japan crisis, and other events in the first quarter, will end up costing them at close to $1 billion.
Deere & Company closed Friday at $90.10, gaining $0.72, or 0.81 percent. AIG closed at $34.95, down $0.75, or 2.10 percent.
Friday, March 18, 2011
Caterpillar (CAT) Faces Some Delays, But February Sales Soar
Caterpillar (NYSE:CAT) will be a huge beneficiary of the rebuilding efforts in Japan once it begins, but their manufacturing presence in the country could also result in some delays from time to time; especially in the short term.
So far the equipment maker says there has been no impact from the devastation in the country, but “moving forward, it is possible those facilities may be sporadically impacted as a result of the situation in Japan.”
Some production delays at its Tokyo, Akashi and Sagami factories have already happened, but there has been no damage, so the production impact for now will be minimal. The facilities are outside the evacuation zone.
Caterpillar said they are already working on developing alternative sources for parts in case of any problems there.
As for their business, February machine sales soared 59 percent around the world, pushing the share price up.
Caterpillar was trading at $105.39, gaining $2.27, or 2.20 percent, as of 12:09 PM EDT.
So far the equipment maker says there has been no impact from the devastation in the country, but “moving forward, it is possible those facilities may be sporadically impacted as a result of the situation in Japan.”
Some production delays at its Tokyo, Akashi and Sagami factories have already happened, but there has been no damage, so the production impact for now will be minimal. The facilities are outside the evacuation zone.
Caterpillar said they are already working on developing alternative sources for parts in case of any problems there.
As for their business, February machine sales soared 59 percent around the world, pushing the share price up.
Caterpillar was trading at $105.39, gaining $2.27, or 2.20 percent, as of 12:09 PM EDT.
US Steel (X), (MT), (SCHN), (STLD), (PKX) Jump on Japan Rebuilding Outlook
Shares of US Steel (NYSE:X), ArcelorMittal (NYSE:MT), Schnitzer Steel Industries (NASDAQ:SCHN), Steel Dynamics (NASDAQ:STLD) and POSCO (NYSE:PKX), along with other providers of raw materials, are all being pushed up on the expected enormous demand from Japan to rebuild the country once they get past the crisis point they're now in.
The only question is how much of the future will be priced in before the share price of companies like those listed above pull back.
Coal companies, diversified miners and other raw material providers should do well for some time, as the needs of Japan could reach unprecedented levels for years into the future.
Another thought to consider is how this will extend the commodity bull market, which many experts felt we were in the middle of. These could easily extend it several years, or possibly even a decade, depending on the extent of the damage done.
U.S. Steel closed Thursday at $54.74, gaining $0.81, or 1.50 percent. Posco closed at $108.66, up $3.55, or 3.38 percent. Steel Dynamics ended the session at $18.18, rising $0.38, or 2.13 percent.Schnitzer Steel Industries finished the day at $62.15, gaining $1.26, or 2.07 percent. ArcelorMittal climbed to $34.10, up $1.26, or 3.84 percent.
The only question is how much of the future will be priced in before the share price of companies like those listed above pull back.
Coal companies, diversified miners and other raw material providers should do well for some time, as the needs of Japan could reach unprecedented levels for years into the future.
Another thought to consider is how this will extend the commodity bull market, which many experts felt we were in the middle of. These could easily extend it several years, or possibly even a decade, depending on the extent of the damage done.
U.S. Steel closed Thursday at $54.74, gaining $0.81, or 1.50 percent. Posco closed at $108.66, up $3.55, or 3.38 percent. Steel Dynamics ended the session at $18.18, rising $0.38, or 2.13 percent.Schnitzer Steel Industries finished the day at $62.15, gaining $1.26, or 2.07 percent. ArcelorMittal climbed to $34.10, up $1.26, or 3.84 percent.
Qualcomm (QCOM) Jumps on Limited Japan Effect
Shares of Qualcomm (NASDAQ:QCOM) rose Thursday on the company saying they see little if any impact on supply as a result of the crisis in Japan.
After reviewing its supply chain, Qualcomm said they see nothing that should cause any disruption in supplying products to its customers.
The major concern, bismaleimide triazine resin, which it uses as laminate in some of its chipset packages, can be handled by using stored stock and by making adjustments to its material mix in the short term.
Qualcomm closed Thursday at $52.32, gaining $1.82, or 3.60 percent.
After reviewing its supply chain, Qualcomm said they see nothing that should cause any disruption in supplying products to its customers.
The major concern, bismaleimide triazine resin, which it uses as laminate in some of its chipset packages, can be handled by using stored stock and by making adjustments to its material mix in the short term.
Qualcomm closed Thursday at $52.32, gaining $1.82, or 3.60 percent.
General Electric (GE) Joins Nuclear Showdown in Japan
With billions at state and uncertainty surrounding the outcome of the desperate battle of the Japanese to prevent a meltdown of their nuclear reactors which could end up with an enormous amount of radiation being released, General Electric (NYSE:GE) has finally stepped up its efforts to help mitigate the crisis.
The U.S. conglomerate's delivery of equipment and expertise may help an overwhelmed customer, Tokyo Electric Power Co., deal with an unprecedented crisis. Its expertise could also help GE begin controlling the collateral damage to the company's reputation from the failure of the reactors' cooling systems after the devastating earthquake and tsunami that hit Japan last week.
The extensive media coverage linking GE to the reactors could hamper the company as it competes to sell new reactor designs around the world through its nuclear joint venture with Japan's Hitachi Ltd. Billions of dollars in reactor sales are potentially at risk, and billions more in vendor contracts to service them.
Though they are based on a design decades older than the ones GE currently markets, all the endangered reactors at the Fukushima Daiichi plant are the boiling-water type, which the company still offers, and that may cause potential customers to raise questions about the technology.
"Just like the whole industry, we want to look at the details of what happened here. There is going to be a lot of discussion, and we're part of that process," a GE spokesman said, adding that the company's immediate focus is providing assistance.
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The U.S. conglomerate's delivery of equipment and expertise may help an overwhelmed customer, Tokyo Electric Power Co., deal with an unprecedented crisis. Its expertise could also help GE begin controlling the collateral damage to the company's reputation from the failure of the reactors' cooling systems after the devastating earthquake and tsunami that hit Japan last week.
The extensive media coverage linking GE to the reactors could hamper the company as it competes to sell new reactor designs around the world through its nuclear joint venture with Japan's Hitachi Ltd. Billions of dollars in reactor sales are potentially at risk, and billions more in vendor contracts to service them.
Though they are based on a design decades older than the ones GE currently markets, all the endangered reactors at the Fukushima Daiichi plant are the boiling-water type, which the company still offers, and that may cause potential customers to raise questions about the technology.
"Just like the whole industry, we want to look at the details of what happened here. There is going to be a lot of discussion, and we're part of that process," a GE spokesman said, adding that the company's immediate focus is providing assistance.
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Shares of Patriot Coal (PCX), (ANR) (EEE) Jump on Japan Demand
Evergreen Energy (NYSE:EEE), Alpha Natural Resources (NYSE:ANR) and Patriot Coal (NYSE:PCX) joined other coal companies in a rising share price, as expected coal demand in Japan will soar in order to replace the loss of electricity generated from the nuclear reactors.
Other energy sectors such as wind and solar have been pushed up, but that's unsustainable, as there's nothing in that segment of the market that can help Japan in any way.
Another major product expected to rise in demand in Japan is liquefied natural gas, in which Japan is the largest importer in the world at this time.
For now there will be rolling blackouts until power is sufficiently restored in the country.
Patriot Coal closed Thursday at $23.63, gaining $0.31, or 1.33 percent. Alpha Natural Resources ended the trading day at $55.02, up $2.10, or 3.97 percent. Evergreen Energy closed at $2.93, rising $0.14, or 5.21 percent.
Other energy sectors such as wind and solar have been pushed up, but that's unsustainable, as there's nothing in that segment of the market that can help Japan in any way.
Another major product expected to rise in demand in Japan is liquefied natural gas, in which Japan is the largest importer in the world at this time.
For now there will be rolling blackouts until power is sufficiently restored in the country.
Patriot Coal closed Thursday at $23.63, gaining $0.31, or 1.33 percent. Alpha Natural Resources ended the trading day at $55.02, up $2.10, or 3.97 percent. Evergreen Energy closed at $2.93, rising $0.14, or 5.21 percent.
Shares of Arch Coal (ACI), (YZC), (BTU), (MEE) Rise on Expected Japan Demand
With few exceptions coal companies have been soaring on expectations Japan will need an huge supply of coal to replace the loss of nuclear energy. Companies like Arch Coal (NYSE:ACI), Yanzhou Coal mining Co. (NYSE:YZC), Peabody Energy Corporation (NYSE:BTU), and Massey Energy (NYSE:MEE) have been soaring in share price on the expected boost in demand, confirming the vital importance of coal as a major source in generating electricity.
Energy sectors like solar and wind power were also up, but that is more a irrational reaction and irrelevant, as there is nothing there that could aid Japan in the short or long term.
Liquefied natural gas is another demand expected to surge in Japan, as Japan is the largest importer of that in the world.
Arch Coal, Inc. closed Thursday at $35.09, gaining $.94, or 2.75 percent. Yanzhou coal mining Co. closed at $31.96, gaining $1.00, or 3.23 percent. Peabody Energy Corporation closed at $70.12, up $2.45, or 3.62 percent. Massey Energy ended the session at $63.15, up $2.32, or 3.81 percent.
Energy sectors like solar and wind power were also up, but that is more a irrational reaction and irrelevant, as there is nothing there that could aid Japan in the short or long term.
Liquefied natural gas is another demand expected to surge in Japan, as Japan is the largest importer of that in the world.
Arch Coal, Inc. closed Thursday at $35.09, gaining $.94, or 2.75 percent. Yanzhou coal mining Co. closed at $31.96, gaining $1.00, or 3.23 percent. Peabody Energy Corporation closed at $70.12, up $2.45, or 3.62 percent. Massey Energy ended the session at $63.15, up $2.32, or 3.81 percent.
Denison (AMEX:DNN) Rebounds, Cameco (NYSE:CCJ) Still Punished
Shares of Denison (AMEX:DNN) moved up on Thursday, while Cameco (NYSE:CCJ) continues to get punished on uranium and nuclear concerns from the effects of the earthquake in Japan.
Denison may be getting action on its lower valuation, although Cameco has dropped significantly since last Friday as well. When measured by percentages, Denison has fallen the furthest, and is in a position to benefit investors quicker than Cameco, which has dropped by almost 25 percent, while Denison had dropped by over 33 percent at its five-day low.
The question is whether or not the uranium and nuclear stocks have hit their low, or there's more volatility to come.
Until the situation in Japan is clarified on the nuclear front, it'll be a up and down ride in this sector, as well as other affected by the disaster.
Cameco closed Thursday at $28.10, down $1.54, or 5.20 percent. Denison closed at $2.42, gaining $.13, or 5.68 percent.
Denison may be getting action on its lower valuation, although Cameco has dropped significantly since last Friday as well. When measured by percentages, Denison has fallen the furthest, and is in a position to benefit investors quicker than Cameco, which has dropped by almost 25 percent, while Denison had dropped by over 33 percent at its five-day low.
The question is whether or not the uranium and nuclear stocks have hit their low, or there's more volatility to come.
Until the situation in Japan is clarified on the nuclear front, it'll be a up and down ride in this sector, as well as other affected by the disaster.
Cameco closed Thursday at $28.10, down $1.54, or 5.20 percent. Denison closed at $2.42, gaining $.13, or 5.68 percent.
Freeport (FCX), (RIO), (TCK) Pumped Up on Raw Material Demand
Shares of Freeport-McMoRan (NYSE:FCX), Rio Tinto (NYSE:RIO) and Teck Resources (NYSE:TCK) continue to soar on the expected long-term demand for raw materials from Japan, to add to the demand from China as well.
The amount of devastation in the country ensures there will be a call for commodities to help Japan rebuild for years into the future, strengthening an already strong outlook. Diversified miners like these could continue the bull run much longer on the Japan equation alone.
Freeport closed Thursday at $52.00, gaining $1.71, or 3.40 percent. Rio Tinto closed at $64.61, up $2.61, or 4.21 percent. Teck Resources closed at $54.43, rising $2.89, or 5.61 percent.
The amount of devastation in the country ensures there will be a call for commodities to help Japan rebuild for years into the future, strengthening an already strong outlook. Diversified miners like these could continue the bull run much longer on the Japan equation alone.
Freeport closed Thursday at $52.00, gaining $1.71, or 3.40 percent. Rio Tinto closed at $64.61, up $2.61, or 4.21 percent. Teck Resources closed at $54.43, rising $2.89, or 5.61 percent.
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