Friday, April 29, 2011

Jinko (JKS) (CSIQ) (HSOL) (PWER) Should Jump on Total (TOT) Deal

There is no doubt the move by Total SA (NYSE:TOT) to acquire a majority stake in U.S. solar company SunPower Corp. (NASDAQ:SPWRA) will spur the industry, as it will generate the idea of who may be next to be infused with cash, such as Canadian Solar (NASDAQ:CSIQ), Hanwha SolarOne Co. (NASDAQ:HSOL), Jinko Solar (NYSE:JKS) and Power-One Inc (NASDAQ:PWER).

It must be kept in mind that the China-based solar companies already have access to capital, so it probably won't affect them as much, although they'll more than likely be pulled up with the rest of the sector over the short term, based on speculation.

Analysts were suprised by the decision of Total, as the solar industry, if you can call it that, is pressured by slow sales, rising costs of raw materials, financing, no real market for the product, and shrinking government support.

If it wasn't for government subsidies there would be no solar market, and the general population couldn't care less about solar, contrary to media allusions to that effect.

That's not to say you can't make money in the industry, as it's subject to wild swings because of it being a media darling and even when it's debatable as to the validity of the industry as a whole, it won't stop the media from hyping it up and causing the share prices of solar companies to jump, as they will on the news of the deal by Total for SunPower.


Anonymous said...

" is pressured by slow sales, rising costs of raw materials, financing, no real market for the product, and shrinking government support. "

UNTRUE STATEMENT!! Do some DD on the solar industry and state some facts to back up what you are saying. You are obiviously either ignorant about the solar industry or have a bearish position. I think it's ignorance. Why is a major oil corporation (Total) making this aquisition if solar has no future??

Anonymous said...

" is pressured by slow sales, rising costs of raw materials, financing, no real market for the product, and shrinking government support. "

This is the ultimate joke of the year!

NO, you must not be that ignorant because the facts are absolutely different from your description above. You are just shorting the sector.

If you are also bothered from some million $$ subsidies to some solar companies, why are NOT you bothered by the BILLION $$$$ governmental subsidies to the oil companies for a decade now ?

Obama revealed these BILLION $$$$ subsidies again at his latest speech last Sunday.

Solar technology is the future and the solar companies should be treated with PREMIUM pe of 30 actually similar to the technology stocks of Nasdaq.

Anonymous said...

Read below about these BILLION $$$$ subsidies to the oil companies:

Obama pumps plan to develop renewable energy

Obama says developing renewable energy sources is 1 answer to rising gasoline, oil prices

President Barack Obama waves upon his arrival at Andrews Air Force Base, Md., Friday, April 22, 2011.
(AP Photo/Luis M. Alvarez)
Darlene Superville, Associated Press, On Saturday April 23, 2011, 4:48 pm EDT

WASHINGTON (AP) -- President Barack Obama says one answer to high gasoline prices is to spend money developing renewable energy sources.

"That's the key to helping families at the pump and reducing our dependence on foreign oil" in the long term, he said Saturday in his weekly radio and Internet address.

Obama raises the issue of rising fuel prices during almost every public appearance and says that he understands the strain higher fuel costs are putting on some family budgets.

He announced Thursday during an event in Reno, Nev., that the Justice Department will begin looking for cases of fraud or manipulation in the oil markets, even though Attorney General Eric Holder suggested a variety of legal reasons may be behind the surging gas prices.

As he has before, Obama said Saturday there is no "silver bullet" that will slash gas prices immediately. But he said there are things government can do to help make a difference in the long term. They also include boosting U.S. oil production, rooting out any illegal activity by traders and speculators and ending $4 billion in annual taxpayer subsidies to oil and gas companies.

"Instead of subsidizing yesterday's energy sources, we need to invest in tomorrow's," Obama said.

In the weekly Republican address, Nebraska Sen. Mike Johanns focused on jobs and said lawmakers who are serious about creating them need to cut spending and the bureaucracy that he and others say burden small businesses and keep them from hiring more.

"If everyone is serious about job creation, in addition to reducing the debt, let's reduce burdensome regulations that serve no purpose other than to insert more government into the lives of citizens," he said. "We can't tie up small businesses in needless red tape and regulations and expect them to create jobs and boost the economy."

Anonymous said...

You really should find another industry to write about, your wife or husband,lol should be ashamed with your negative comments and direction..
O your blowing the Oil CEO's that right..
I seen hookers with more knowledge of the industry.. Not that there's anything wring with that..

Anonymous said...

I'd say this guy is shorting!... no one can be that dumb with the amount of background information available on the Net re the solar sector!