Even if First Solar Inc (FSLR) results were good, it seems that the market changed its mind this morning.
Pre-market moves for these Solar Stocks: FSLR -8% ESLR -10%
First Solar continued to shine among its struggling peers, as its second-quarter profit more than doubled on higher revenue and margins, while Evergreen Solar Inc. (ESLR) swung to a wider loss amid lower pricing. Following the news, First Solar shares 4.8% to $181.95 in after-hours trading as results topped analysts' estimates. Evergreen added 7.5% to $2.20.
We are now getting the "Selling the news" phenomenon, so watch the new support prices to reenter long. Expect heavy gaps all across the Solar Stock Sector.
Solar Stocks ETF TAN (Claymore/MAC Global Solar Index) seems to be pointing for a downswing in the short term. The markets seem to be strong enough to stop the bears from making a big move downward, but this 'Solar Index' keeps pointing down.
Today's Opening could continue de down movement, with the US Futures in the red, a couple of hours before the opening.
The TAN Chart look's like this:
Meanwhile Canadian Solar Inc. (CSIQ) released it's earnings schedule: Canadian Solar Schedules 2Q09 Results Conference Call
Canadian Solar Inc. (Nasdaq: CSIQ) today announced that it will hold a conference call to discuss the Company's financial results for the second quarter ended June 30, 2009 and business outlook.
The dial-in number for the live audio call, which will begin on Thursday, August 6, 2009 at 8:00 a.m. U.S. Eastern Time (8:00 p.m. August 6, 2009 in Hong Kong), is +1-617-847-8712. The conference call passcode is 63818298. A live webcast of the conference call will also be available on Canadian Solar's website at http://www.canadian-solar.com .
A replay of the call will be available approximately one hour after the conclusion of the live call through 12:00 p.m. on August 13, 2009, U.S. Eastern Time (12:00 a.m., August 14, 2009 in Hong Kong) by telephone at +1-617-801-6888. To access the replay, use passcode 52551852. A webcast replay will also be available at http://www.canadian-solar.com .
Solar Stocks are opening lower today, following the rest of the market that seems to be set for a weaker open today.
Maybe this is the beginning of the correction that might last some days.
Some news regarding Suntech Power Holdings Co., Ltd. (STP):
Suntech, CECIC Enter into Strategic Agreement to Develop Solar Projects
Suntech Power Holdings, a manufacturer of photovoltaic modules, has entered into a strategic agreement with the China Energy Conservation Investment Corporation to develop solar projects over the next five years.
Through the partnership, the China Energy Conservation Investment Corporation (CECIC) will primarily be responsible for project investment and solar project development and Suntech will supply solar products, system design and technical support.
Suntech and CECIC plan to focus on the development of large scale on-grid projects, urban building-integrated photovoltaics (BIPV) projects, rural off-grid projects, and wind-solar hybrid projects.
Cramer might be getting bullish, but after this latest bullish run, it's expected to see some downturn for solar stocks. Better wait to see if the market does go lower in the following days.
Cramer Touts Yingli (YGE), Suntech (STP) as Plays on China's Hot Solar Sector
On Friday night's Mad Money, Jim Cramer got bullish on several solar stocks, Yingli (NYSE: YGE) and Suntech (NYSE: STP), revising his recent recommendation that First Solar (Nasdaq: FSLR) was the only worthy one from the group. Traders seem to be taking heed to the Cramer call this morning, bidding up shares of both these solar plays. Yingli Green Energy is currently up 3.6% to $15.63, while shares of Suntech are up 0.8% to $20.65.
Cramer attributed his now positive views on the two stocks to China's new solar initiative which subsidizes all solar installations in urban areas by 50%. Cramer believes that Suntech will be involved in "all of the high-profile solar installations" and that Yingli should benefit from its low-cost structure.
First Solar to Announce 2nd Q 2009 Financial Results on July 30
First Solar, Inc. (Nasdaq: FSLR) will report financial results for the second quarter ended June 27, 2009, after market close on Thursday, July 30, 2009. The Company will hold its quarterly conference call to discuss these results at 4:30 p.m. EDT. Investors may access a live web cast of this conference call on the Investors section of the Company's web site at www.firstsolar.com.
An audio replay of the conference call will also be available approximately two hours after the conclusion of the call. The audio replay will remain available until Tuesday, August 4, 2009, at 11:59 p.m. EDT and can be accessed by dialing 888-203-1112 if you are calling from within the United States or 719-457-0820 if you are calling from outside the United States and entering conference ID 6443641.
Premier Power Renewable Energy says it signed contracts for more than 1 MW of solar photovoltaic rooftop installations in Spain during June.
These commercial rooftop projects will utilize crystalline modules provided by General Electric and cylindrical thin-film provided by Solyndra. This 1 MW of installations will be installed only on commercial rooftops, which remain the majority of the current installation market in Spain.
"We continue to see substantial growth opportunity in Spain, reflecting the tremendous demand for rooftop and building integrated solar energy systems that are easily integrated into the existing energy transmission infrastructure,"
Bjorn Persson, executive vice president of European operations for Premier Power
Suntech Power Holdings Co., Ltd. Gets Four Solar Projects In China-Reuters
Reuters reported that Suntech Power Holdings Co., Ltd. reached agreements to develop four solar power plants in China. Suntech struck the 1.8 gigawatts of solar power deals with the governments of Shaanxi and Qinghai provinces as well as the Shizuishan and Panzhihua city governments. The Shaanxi development will be 300 megawatts, while the remaining three projects will be 500 MW each.
Source: Reuters
Energy Department to pay $52.5 million for 24/7 solar power
The U.S. Department of Energy will pay $52.5 million for research, development and demonstration of concentrating solar power systems that can deliver power 24/7. Concentrating solar power systems concentrate the sun’s rays onto a fixed point and use the heat produced to create steam that turns turbines to produce energy.
"Weakened demand for solar power projects in major markets like Europe and the United States as a result of the global credit crunch has resulted in production overcapacity of solar panels, says a new report by analysis firm.
As a consequence of this, says Frost & Sullivan’s Asia Pacific program manager of Energy & Power Systems Practice, Irina Sidneva, “The current financial crisis has lowered the amount of funds available for high-cost solar power projects, forcing many companies to re-evaluate their position in the key solar power markets of Europe and the United States, as well as to re-focus their strategic moves.” Source
Solar Industry Earnings Will Disappoint (FSLR, SPWRA, ENER, CSIQ, ESLR)
Deutsche Bank solar analyst Steve O'Rourke is warning clients to watch out for weak Q2 results in the solar industry.
Module shipments and installations are up, but not in line with what many people are expecting. The continued drop in module prices, as well as limited availability to credit are going to weigh on solar earnings. O'Rourke sees write downs in inventory and receivables.
The second half of the year will be better, but not be good enough to match guidance provided by most solar companies. So, watch out for lowered guidance numbers. Also, he warns that margins and profits will be squeezed. Source
When at least one investor is Bearish on First Solar, and gets this much coverage on the media, then I would say to start doing the opposite.
With the recent market correction, maybe it's time to start getting Bullish. First Solar looks Bullish to me around the $130 - $145.
On TheStreet.com news regarding this:
Right out of the gate today, an investor's put spread purchase trumped normal daily options volume in First Solar (FSLR Quote) despite a positive outlook from analysts. FSLR second-quarter earnings are due on July 29. Analysts expect a 36-cent drop in earnings, even after the solar semiconductor manufacturer beat analysts' estimates by 50 cents last quarter. FSLR is approximately 30% off its recent high of $202.40 reached on May 20, and it looks like at least one investor could be betting that the stock could decline further.
Latest developments on Solar Panel efficiency, and the ever shrinking costs of silicon and thin film solar panels will bring someday what is known as Grid Parity, a price barrier where Solar becomes as cheap as conventional fossil fuel sources of energy(mainly the coal and gas power plants)
Moore’s law does apply to solar panel technology and grid parity might be coming sooner than later.
Some recent articles commenting on these matters:
The Shining: Solar Power, Grid Parity, and the Cost of Power
Clean energy has a holy grail—the day when the electricity produced by solar panels and the like can compete dollar-for-dollar with electricity churned out by traditional power plants.
That day is getting closer all the time. But as Lux Research notes today in a new report, so-called “grid parity” isn’t a done deal yet, and still depends on such fickle factors as the amount of sunlight hitting rooftops and political will to underwrite hefty subsidies for solar power.
The Lux report, “The Slow Dawn of Grid Parity,” stresses a few main points. Solar power is now measured by the cost of the electricity it produces, rather the cost of installing the stuff in the first place.
That makes a big difference for consumers, utilities, and investors, Lux says, since it makes it a lot easier to compare apples with apples. That’s because solar power (like wind) costs a lot upfront, but has free fuel—so it looks more attractive when measured by the electricity it actually produces.
Grid parity represents something of a Holy Grail for solar companies — a point where they can compete on cost with conventional fossil fuel sources of energy. The race for grid parity shifted into overdrive earlier this year as a heap of new funding and the extension of tax credits were approved as part of the stimulus package. According to a new report released today from Lux Research, certain types of solar installations are now on the verge of grid parity — especially in California — but accelerating progress toward that Holy Grail has in some ways never been more at risk.
Light-absorbing nanowires may make better solar panels BY DAVID ORENSTEIN
A century after German physicist Gustav Mie derived the math to explain why the colors in some stained glass windows look especially resplendent in the sunlight, a team of Stanford engineers has built upon his work to potentially improve a means of harvesting energy from the sun.
In 1907 Mie realized that tiny metal particles in stained glass scattered light in ways that produced beautiful colors. Now, a related interplay between light and matter explains why incredibly thin "nanowires" made of semiconductors like germanium may prove to be effective components for solar cells. Combining Mie's work with more recent theory, the Stanford team has discerned how to tune and improve the light absorption efficiency of the wires. Their research appears in the July 5 online edition of the journal Nature Materials.
With Crude Oil on its 3rd consecutive day drop, Solar Stocks keep following the Commodity, losing from -5% to -10% on most Solar Stocks.
Some examples for today: Energy Conversion Devices, Inc. (ENER) -8% First Solar, Inc. (FSLR) -5% Suntech Power Holdings Co., Ltd. (STP) -9% Canadian Solar Inc. (CSIQ) -10%
The Solar Stock ETF of reference, Claymore/MAC Global Solar Index , is down almost 7%
Keep away from Solar Stocks for a couple of days, we might get some opportunities by the end of the week. If your Short, keep those profits running.
With the US Markets closed today, we take a look at the biggest European Solar Stock, Q-Cells.
The chart shows this solar stock is still lagging behind the rest of the market, but cheap considering the size of the company, and the fact that Q-Cells SE was/is the single largest producer of solar cells in 2007 according to industry data.
With an annual production of 370 megawatts (MW), this could be the only Solar Stock that is still cheap and a good play for the mid to long term investing. And one of the most fundamentally solid companies in the Solar Sector.
Q-Cells SE, formerly Q-Cells AG, is a Germany-based company active in the field of photovoltaic. Its core business is the development, production and sale of mono- and polycrystalline, silicon-based solar cells. Its core business segment Solar Cell Production includes monocrystalline cells, comprising Q6M and Q6LM; and polycrystalline cells such as Q5, Q6, Q6LTT, Q6LTT3 and Q6LEP3, among others. The Company also offers a range of thin film modules and is engaged in Project Business.
With the upgrades given today, some Solar Stocks started to move, while others remained in the red. The TAN Solar ETF is still neutral for today, but let's compare the two biggest performers for today with the Solar Stock ETF Benchmark:
Energy Conversion Devices, Inc. (NASDAQ:ENER) is still one of the worst performers counting from the bottom of the Bear Market since March, it's low PER and the fact that its Operating Income is positive for the 1st Quarter of 2009, means this could be one of the stocks to watch in the future. Just remember that it still is a laggard: Very nice performance since the bottom, but still below the average when compared to TAN. TAN is the ETF that represents the 'Stock Index' for the whole Solar Industry, and has already recovered all of the losses since December, but still has much to recover. This should be the perfect candidate if you want to diversify in the Solar Industry, but look to the long term!
PMorgan Solar Picks (ENER, ESLR, FSLR, ASTI, SPWRA)
JPMorgan has decided to make some key solar ratings changes this morning. The firm is cautious on the valuation of some in the position of a declining market trend right now, but there are some key takeaways here that are up as well. Energy Conversion Devices, Inc. (NASDAQ: ENER) and Evergreen Solar Inc. (NASDAQ: ESLR) are up, while shares of First Solar Inc. (NASDAQ: FSLR) are getting slapped on this call today.
Ascent Solar Technologies Inc. (NASDAQ: ASTI) was upgraded to Neutral from Underweight; no trade indications have been seen as this is a low-imapct change. Energy Conversion Devices, Inc. (NASDAQ: ENER) was initiated with an Overweight; shares are trading up 4%. Evergreen Solar Inc. (NASDAQ: ESLR) was the surprise winner as it was upgraded to Overweight from Underweight; its shares are up 10% at almost $2.40 in pre-market trading. SunPower Corporation (NASDAQ: SPWRA) was also upgraded, but only to “Neutral” from Underweight; no trade indications have been yet.
The standout in the group is unfortunately the leader of the whole solar sector. First Solar Inc. (NASDAQ: FSLR) downgraded to Neutral from Overweight. Shares are still seeing thin volume but are indicated down 2% at $152.00.
