Chinese Solar Stocks Rocket Higher On Stimulus Hopes (Updated)
The Chinese solar stocks have skyrocketed this morning, apparently on hopes for support from the industry from both the U.S. stimulus package and from China’s government.
There doesn’t seem to be any single reason for the massive rally, but there are some bullish tidbits floating around that bode well for the sector.
The New York Times reports in a blog post that “after several gloomy months, experts say that the stimulus package is beginning — just beginning — to revive interest in wind and solar power.” Among other things, the post quotes a Sharp Solar official as saying one unspecified large solar project that had been delayed by financing issues is now back on track after banks have again becoming willing to back the project.
Meanwhile, DigiTimes reports that China’s government “intends to take a firm attitude to support the local development of solar energy in China,” although it has yet to design an incentive program to subsidize solar projects, and has not set a time table for designing a program since “costs of power generation are still too high.”
Update: China has approved a subsidy plan for large-scale solar installations of $3/watt, setting the stage for a dramatic acceleration of the industry there.
Almost all of the solar stocks are posting big gains this morning, with the China-based players showing particular strength. Among the China-based plays this morning:
- Suntech (STP) is up $2.62, or 33.4%, at $10.47
- Yingli Green Energy (YGE) is up 82 cents, or 19.8%, to $4.97.
- LDK Solar (LDK) is up $1.68, or 28.5%, to $7.57.
- China Sunergy (CSUN) is up 45 cents, or 17.9%, to $2.95.
- Trina Solar (TSL) is up $1.54, or 17.8%, to $10.20.
- Canadian Solar (CSIQ) is up 66 cents, or 13.7%, to $5.49.
- Solarfun (SOLF) is up 56 cents, or 15.7%, to $4.13.
- ReneSola (SOL) is up 45 cents, or 17.1%, to $3.08.
Among the U.S. solar stocks:
- Evergreen Solar (ESLR) is up 15 cents, or 8.6%, to $1.90.
- Energy Conversion Devices (ENER) is up $1.27, or 8.7%, to $15.83.
- First Solar (FSLR) is up $4.02, or 3%, to $138.
- GT Solar (SOLR) is up 38 cents, or 7.8%, to $5.25.
- MEMC Electronic Materials (WFR) is up 92 cents, or 5.3%, to $18.14.
- SunPower (SPWRA) is up $2.44, or 10.2%, to $26.48.
Short opportunity?
What do you think about Yingli? I have bought 400 share and at the time it was 21.95,now in the 5.00 range. I have lost 6,692.00 Lots of money. Would like a comment on this
I had bought Yingli , 400 shares at 21.95. It is now in the 5.00 range. As you can see I have lost a ton of money. Should I hang on?
Why don’t you quote all of your bearish analysts on solar stocks? Apparently your friends have now all covered their short positions. Eric, you have been either a very gullible writer for those short sellers or a crooked agent for them.
johmsen-solar is the future and if ever their was a buy and hold sector, it is this one-international energy agency reported that all fossil fuels are in decline and solar will be the 2nd largest producer of electricity by 2030-BUY MORE!
i bought gte at 6.5, sold it at 10.5, then bought ldk at 6.1…shiuld i sell?
knock them down
pump them up
ook, ook,
so easy a monkey can do it
so hire monkeys….
I have Yingli as well, 1000 shares at 5.85. I’ve lost some money on it, but got most of it back today. I like it long term for three major reasons. One, they are producing at 10 cents per kwh, by far cost of any major solar player at present:
http://www.china.org.cn/environment/news/2009-03/26/content_17504686.htm
2. They received an 8 year, $70 million loan agreement from the China Development Bank, a Chinese gov’t entity with a 99% repayment rate. This loan essentially fixed their Quick Ratio at 1+ for the next year. In other words, they now have the cash to pay their short term debts, and CDB thinks there’s a 99% chance they’ll still be around in 2015 to complete their debt obligation:
http://findarticles.com/p/articles/mi_m5CNK/is_2008_Dec_23/ai_n31145571
3. They are expanding their capacity by 50% (from 400 to 600 MW) this year, and have shown the ability to sell their inventory into a global market profitably.
Fast expansion plus smart management plus continuing demand (based on Q4 results which beat sales and profit estimates) plus a VERY low P/E plus 1% bankruptcy threat over the next 8 years (according to the canny minds at the China Development Bank) means this stock is far more likely to triple than head to zero over the coming year.
My target for summer 2009 12.50 per share. At that point, I’ll take some profits, but I’m holding onto at least 500 shares for the indefinite future.
Keep an eye out on oil, slowing it is creeping up up!! How many times can a fool make the same mistake?? So far, what O bama has promised, it is slowing,yet surly coming true. Alternative energy is here for the long run. Go ahead smart guys, keep shorting it, you will pay, probably not tomorrow, but sooner than you think!!
If an outbreak of vicious protectionism is to be averted, it’s essential that China develop a domestic solar market. Otherwise, we Americans will have to say “bu hao” to occurrences such as last year’s installation of Suntech panels at Caltech in Pasadena. Does Caltech like getting federal grants or not? That money comes from American workers. The papers and blogs all say that American workers are hurting right now. The people at Caltech can read that equation, can’t they? We’d mind a little less about Suntech and Sharp and Kyocera selling panels here if we saw some of ours going in over there. Or at least some of their own going in over there. This applies to Japan as well. A lot of U.S. workers would be happy to sign a petition or two about this. But it’s starting to sound like it won’t have to come to that. It would be pleasing to us Americans if China followed up its words with some action this spring. Japan too.
Report from Ground Zero, you’re a classic victim. The reason China and Japan lead us in alt energy is because American management can’t think beyond a 3 month time period. Just look at the auto industry for proof of that!
Direct your complaints to short sighted American business. At least the installers will have to be American, although I’m sure our smart businessmen will probably hire illegal workers for that too.
groundzero, i sympathise, but, after years of USA preaching fair trade, you gonna bottle it when you get some competition? so build it better, build it cheaper, build it faster, and if you don’t find something else to do. The infrastructure for a green economy would employ millions of Americans, and when it’s done life will be alomost free! (I think that’s what big business are scared of!) the green revolution IS THE revolution
The best solar Stock is CSKH .
ALL IN THE USA.
Over 200 milion dollars in the pipeline for 2009 and XTRAX
GO CSKH!
Agreed–American companies need to step up and compete effectively. And in Caltech’s defense, there wasn’t a lot to choose from at the time. That said, China later today announced a major solar stimulus package, effective immediately. That’s good for China, and good for us. Japan, no doubt, will continue with its plans to reinvigorate domestic demand. Now it’ll be up to the companies, wherever they are quartered, to deliver products at prices that make solar a sensible investment for businesses, utilities, and homeowners.
Tech
Trader Daily is a blog on technology investing written from Palo Alto,
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