Thursday, April 14, 2011

Solar (TSL) (STP) (JASO) (YGE) Jumps on Budget Survival, High Oil

The volatile solar sector was up Wednesday at it for some reason survived budget cuts and got a boost from higher oil prices and the commitment of hundreds of millions to the sector by General Electric (NYSE:GE). That pushed the share price of Suntech Power Holdings (NYSE:STP), JA Solar Holdings (NASDAQ:JASO), Trina Solar (NYSE:TSL) and Yingli Green Energy (NYSE:YGE) up, along with others.

Investors throw money at solar when energy prices, especially oil, rise, as it creates the illusion the higher oil prices make solar more attractive, even with its extraordinarily high price tag.

Too bad the sector remained underwritten be taxpayers' dollars, as it should be allowed to compete in the energy marketplace to see if it in fact is being generated by demand of government fiat.

It's unlikely solar would survive without being propped up by government subsidies, an extremely bad precedent and policy (some are from other countries of course).

Yingli Green closed Wednesday at $12.39, gaining $0.50, or 4.21 percent. Trina Solar closed at $29.63, up $1.21, or 4.26 percent. JA Solar closed at $5.555, rising $0.075, or 1.16 percent. SunTech closed at $9.34, increasing $0.11, or 1.19 percent.

5 comments:

Unknown said...

And what do you say of nuclear power which would not exist at all if not for government loan guarantees insurance. No insurance company will insure a nuclear plant inf full and no bank will finance one without government guarantees.

Why do you treat an emerging solar growth industry that is gathering huge provate investments and employing hundreds of thousand of people like it is different. Ever hear of any subsidies for old or coal?

Anonymous said...

I'm with you Joe. Take out the subsidies for everyone add carbon emmisions tax and then let's see what is and what is not competitive.

Unknown said...

What a load of crXX!
Solar is still very expensive that's true, but every new technology is like that at first. Do you remember the price of the first computers (or business machines as they were once called. How about cell phones? Remember the time they cost like a used car? Now its true that no one can predict the future, but the world energy needs are growing by the minute, while oil, gas n coal sopplies will eventual run out, or destroy our planet before that

Anonymous said...

"It's unlikely solar would survive without being propped up by government subsidies" You can't even make statements like this anymore - look at your government and economy - the US is sooo far from being a free market economy is hillarious. One just has to look at all the corporate bailouts given in recent times... grow up America, stop spending what you don't have. And think before you post garbage you waste of skin AMERICAN.

Anonymous said...

Solar, wind, geothermal, and wave power is the future of the worlds energy needs. There is a technology race to make these powers cheaper, and more efficient. If America is to "win the future", clean energy will take the lead. Oil is stone age technology and will be phased out in time. Nuclear creates disasters no sane person can support.