ETF Preview: Solar Stocks Likely to See Downside Pressure on First Solar Downgrade
Commodities -
United States Oil Fund (USO) is down 1.5%. United States Natural Gas (UNG) is down 0.2%.
Renewed hopes for Greece being able to tackle its debt woes is weakening investors’ appetite for gold in early morning trade Tuesday. A firmer dollar is also weighing on the metal’s price. Meanwhile, there is growing concern that Chinese demand for gold may not be as strong as once thought. Gold is 0.5% lower at $1,117.90, while silver is 1.34% weaker at $1,704.00, and copper is down around 1% at $337.75. SPDR Gold Shares (GLD) is down 0.5% and Market Vectors Gold Miners fund (GDX) is down 1%, both among the most active ETFs this morning. iShares Silver Trust (SLV) is up 0.7%.
ETF Power Play -
The Claymore MAC Global Solar Energy Index (TAN) and Market Vectors Solar Energy (KWT) could see increased selling pressure closer to today’s bell.
First Solar (FSLR) is down 3.9% after JPMorgan reportedly cut its rating on the stock to Underweight from Neutral.
SourceLabels: Crude Oil, downgrade, First Solar Inc, FSLR, Solar Stocks
Big Green Day for Solars
SolarFun, JASO Solar Holdings and ReneSola are all having big moves today.
Only now it seems that solar stocks are following the Crude Oil price movement that is reaching new relative highs this week.
Today's chart, ReneSola Ltd. (SOL), shows a new high for the last 3 months. The stock looks bullish from short to long term, as many others in the solar industry sector.
Labels: Crude Oil, JASO, ReneSola, SOL, Solar Stocks, SOLF
Solar Stocks Gapping on Pre-Market
Most Solar Stocks are gapping up today on the Pre-Market.
Except the possible start of an upswing short-term rally, with the ETF TAN up 2% on Pre-Market, and other titles such as STP and CSIQ going up almost 3%, 30 minutes before market open.
The Claymore/MAC Global Solar Index (Solar Stock ETF) Chart looks like this:
And some news, regarding the Solar Industry and Oil price correlation:
Solar Players Looking Again Like Leveraged Oil Trades (FSLR, STP, SPWRA, LDK, ENER, TAN, PBW, CSIQ)Investing in solar and alternative energy stocks comes with many risks. We have often referred to many of these companies as being essentially nothing more than very leveraged speculative oil investments because when energy prices are low most forms of alternative energy are not competitive on a cost structure. The drop of $2.62 per barrel to $66.93 in NYMEX WTI Crude is causing havoc in some of the mid-cap and speculative oils stocks. It is also hitting shares of First Solar, Inc. (NASDAQ: FSLR), Suntech Power Holdings Co. Ltd. (NYSE: STP), SunPower Corporation (NASDAQ: SPWRA), LDK Solar Co.Ltd. (NYSE: LDK), and Energy Conversion Devices, Inc. (NASDAQ: ENER). This is also seen directly in the ETFs of Claymore/MAC Global Solar Energy (NYSE: TAN) and PowerShares WilderHill Clean Energy (NYSE: PBW). Speculative stocks like Canadian Solar Inc. (NASDAQ: CSIQ) look even worse.
Labels: Canadian Solar Inc., Claymore, Crude Oil, CSIQ, FSLR, LDK, PBW, solar ETF, Solar Stocks, Solar Stocks Performance, SPWRA, STP, Suntech Power, TAN
First Solar, Inc. Announces 2008 2nd Q.Results
First Solar, Inc. (Nasdaq: FSLR) today announced its financial results for the second quarter ended June 28, 2008. Quarterly revenues were $267.0 million, up from $196.9 million in the first quarter of fiscal 2008 and up from $77.2 million in the second quarter of fiscal 2007.
Net income for the second quarter of fiscal 2008 was $69.7 million or $0.85 per share on a fully diluted basis, compared to net income of $46.6 million or $0.57 per share on a fully diluted basis for the first quarter of fiscal 2008. Net income for the second quarter of fiscal 2007 was $44.4 million or $0.58 per share on a fully diluted basis, which included a one-time income tax benefit of $39.2 million that resulted from the reversal of valuation allowances against previously established U.S. deferred income tax assets.
FSLR finished neutral with most solar stocks closing lower today.
While Crude Oil continues it's down trend, after July's Historical highs, the solar industry doesn't seem to have the strength to stop the latest Bear rally.
Crude Oil:
Labels: Crude Oil, Earnings, FSLR, solarstocks
Solar Reading
The day was negative for the markets as it was for the solar stocks.
Most of the stocks closed with losses around -6% and -8%
Not much news except the Crude Oil pointing to new highs, and if Oil does get above $100 we could see another rally in the solar sector.
An interesting article on CNET about First Solar (NASDAQ: FSLR)
Why does First Solar stand alone?
First Solar, which makes cadmium-telluride solar cells, is having one of those years that corporate managers and investors dream about.
Revenues more than tripled in the third quarter to $159 million from a year ago while profits rose to $46 million, or about ten times what they were the year before. Plant expansion is occurring rapidly and the company's stock has gone from $20 to over $200 in a year. The stock price seems vastly inflated when you look at traditional price-earnings ratios, but it's not the first time people have bet big on a growth stock. It's the Google of solar on that score.
Full article
hereLabels: Crude Oil, FSLR, Solar Stocks
