Solar Stocks Fall on Barron's Interview

September 28, 2009 4:04 PM EDT
Most solar stocks are moving lower today even in light of crude oil which finished slightly higher this afternoon. Traders are attributing the weakness to a bearish article in Barron's over the weekend. The Claymore/MAC Global Solar Index ETF (NYSE: TAN), or the TAN, is down more than 1.2% today.

The publication did an interview with Hapoalim Securities Gordon Johnson, a noted-solar bear for quite some time now (October 2008). The analyst is currently expecting supply within the PV sector of 7.1GW for 2009 and 10.8GW for 2010. Looking at demand, Johnson is modeling for 4.3-4.5GW this year and about 6GW next year. Bottom line, "things will remain challenging for the solar companies."

Johnson believes solar stocks have recently run due to unwarranted excitement related to a recent announcement out of China that it will consider a local feed-in tariff. The analyst believes that this recent rally allows bearish investors a great entry point to short.

Labels: solar ETF, Solar News, Solar Stocks, TAN

posted by Ertai at 9:03 AM