Tuesday, April 26, 2011

Jinko (JKS) (LDK) (CSIQ) (SPWRA) Cheap Because of Artifical Markets

Until solar can prove it can stand on its own in the free market, the share prices of the companies will continue to be cheap, as is the case with LDK Solar (LDK), SunPower Corporation (SPWRA) and Jinko Solar (JKS), which closed mixed Monday.

The major problem with solar is everyone knows it isn't determined by consumer demand, but on government interference and strategies; something that never ends well.

Another major challenge for solar are the assumptions somehow it's going to solve its problems by some type of future invention. People that say this (and they're many) are just true believers and almost religiously want solar to work with a fervor that only the faithful can match.

That's why when you hear those proponents of solar talk about it, it's predicated largely on wishful thinking and faith in some unforeseeable future, rather than the supply and demand of the marketplace.

Solar would become more attractive if it was cut from the governments around the world and allowed to compete against other energy sources. Then they can prove if they are contenders or pretenders. At this time, most investors believe they're pretenders, as evidenced by their weak performances and share prices.

Solar companies will continue to trading at earnings multiples that reflect companies that are in decline until that becomes the reality.

With that unlikely to happen, and some governments like Germany and Italy backing off some of their commitments, it's doubtful the extremely expensive and unreliable energy source, along with solar companies, will be viable any time soon, if ever.

5 comments:

Anonymous said...

back of their commitments??? wtf are you talking about.. italy just doubled its cap, germany not only voted pro nuclear candidates out last month but they are closing their nuclear plants in order to go solar.. read a newspaper once in a while or stop f-ing lying and cover your short position you idiot

Anonymous said...

Hey there!!

I am one of those religous zealots who profess that solar actually works cheaper (considering the overall cost to the environment, health effects, etc.) than conventional fossil fuels.

I live in PA where solar is not heavily subsidized, but there are large solar projects popping up all over the place. I guess that I am just hallucinating.

And, the water problems that are mounting. Hydraulic facturing are starting to cause a backlash against that industry, which is subsidized through a lack of well-head tax in PA.

Solar is not an industry in decline. Your blog is in an intellectual decline.

Unknown said...

Solar costs are coming down steeply and before too long parity is reached. Of course, if you add the environmental costs of fossil fuels and nuclear, we are probably at parity right now. "Government interference and strategies...never ends well?" Unless it's in YOUR favor, right? Let's not mention oil company subsidies. And I bet your mother/father/uncle like their medicare. How about the highway you use to drive to work? Do you like to drink clean water? Did you support the military? The police? How did the internet start? Cancer research? Space exploration? Do you take your kids to a museum? A library? Get a life.

Anonymous said...

"Solar companies will continue to trading at earnings multiples that reflect companies that are in decline until that becomes the reality."

Then, why is WFR trading at such a high multiple?

Why is FSLR commanding a higher multiple than average?

Nimrods.

Anonymous said...

you are a moron. you deserve to die slowly from radiation from Japan's nuclear crisis.