Sunshine in Solar Stocks
Oil prices and solar stocks price correlation seems to be main excuse for the recent rally in solar stocks.
The truth is that the whole market has been rallying, so pick your reason for the recent solar rally...
Seen in
247wallst.com :
Suntech Power Holdings Co., Ltd. (NYSE:STP) closed its follow-on offering of 23 million ADSs on May 28th. The price per ADS was $12.50, and the company raised net proceeds of about $277 million.
Suntech shares hit a high of more than $16/ADS yesterday before closing at $15.44, nearly $3 more than the follow-on offering price. And virtually all solar stocks have risen nicely in the past week. Canadian Solar Inc. (NASDAQ:CSIQ) and Yingli Green Energy Holding Company Ltd. (NYSE:YGE) are up nearly 20%, and Suntech and Energy Conversion Devices Inc. (NASDAQ:ENER) are up more than 5%.
Why the run-up in price since May 22nd? After all, Suntech earned just $0.01/ADS in the first quarter on revenue of $315.7 million, and estimates for the current quarter are for EPS of $0.01 on $360.5 million in revenues. The others certainly weren’t much more impressive. All the solar players just managed to clear very low expectations. So what’s up?
The answer lies in the rise in oil prices. Crude prices have risen above $64/barrel, US Oil Fund ETF (NYSE:USO) is up more than 5%, and solar stocks are following along for the ride. The sentiment seems to be that demand for oil will translate into demand for energy from all sources.
The solarstocks ETF: Claymore/MAC Global Solar Index is having some difficulty passing the $10 mark, but today should be a good candidate for a breakout in this ETF's price:
Biggest mover today is Canadian Solar Inc. (CSIQ) up 9%
Labels: Canadian Solar Inc., Claymore, CSIQ, ETF, Global Solar Index, MAC, solar ETF, solarstocks, sunshine, TAN
JA Solar Loses Earnings Power
China-based JA Solar Holdings Co., Ltd. (JASO - Analyst Report) announced disappointing financial results for its 1st quarter of 2009 ended March 31, 2009.
Revenue in the reported quarter was $33.9 million, a decrease of 79.4% from $164.2 million in the comparable prior year 1st quarter of 2008, and a decrease of 76.3% from $143.3 million reported for the sequential 4th quarter of 2008.
Likewise, total gross loss in the reported quarter was $20.9 million, significantly down compared to a gross profit of $34.5 million in the year ago 1st quarter of 2008, and gross profit of $1.4 million in the sequential 4th quarter of 2008.
SourceLabels: Earnings, JA Solar Holdings Co., JASO, Ltd., solar, Solar Technology, solarstocks
First Solar downgraded on demand, poly price drop
Sliding polysilicon prices and weak demand in Europe could pressure First Solar Inc.'s shares, said one analyst on Tuesday as he downgraded the company's stock.
Shares of the nation's largest solar-panel maker fell $10, or 5.2 percent, to $181.72 in midday trading.
Full news articleLabels: downgrade, First Solar Inc, solarstocks
Suntech Power Holdings (STP) 1st Q 2009 Earnings on May 21
SAN FRANCISCO and WUXI, China, May 6 /PRNewswire-Asia/ -- Suntech Power Holdings Co., Ltd. (NYSE: STP), the world's largest manufacturer of crystalline silicon photovoltaic (PV) modules, will announce its financial results for the first quarter ended March 31, 2009, before the U.S. market opens on Thursday, May 21, 2009. Suntech management will host a conference call that day at 8:00a.m. Eastern Daylight Time (which corresponds to at 8:00p.m. Beijing/Hong Kong time and 12:00p.m. Greenwich Mean Time on May 21, 2009) to discuss the company's results.
To access the conference call, please dial +1-617-213-8845 (for U.S. callers/ international callers) or +852-3002-1672 (for HK callers) and ask to be connected to the Suntech earnings conference call. A live and archived webcast of the conference call will be available on Suntech's website at http://www.suntech-power.com under Investor Center: Financial Events.
Labels: Earnings, solarstocks, STP, Suntech Power
