The solar industry and solar companies like GT Solar International (SOLR), China Sunergy (NASDAQ:CSUN), Power-One Inc (NASDAQ:PWER), Renesola (NYSE:SOL) and First Solar (Nasdaq:FSLR) are under increasing pressure as the government-created market, which the vast of majority of consumers really don't care about, is struggling because of the two major markets - Germany and Italy, which have been cutting back on subsidies, leaving a large gap in the demand side of the market, which isn't being taken up by any other country at this time, although there are small increases in various countries, including America.
It is increasingly realized that solar (or wind) isn't or won't be the answer to future energy needs, as they're unreliable and expensive, and can't even come close to meeting existing needs, let alone the growing needs of countries around the world.
The best thing to do in energy across the board is to get rid of all government subsidies in every energy sector and let the market decide what it wants.
Government interference through excessive regulation and taxation also needs to be cut back on, as it's only in place in order to promote the so-called "clean energy" initiative, which isn't as clean and green as being put forth, but is a media darling and is reported as being the future of energy, when if fact anyone that knows the energy sector understands at best it'll be a small supplemental part of the energy future, and one that probably doesn't even need to be pursued.
There will probably be a consolidation in the industry even as solar companies continue to mostly operate under losses, even with the generous subsidies and government pressure on competing energy industries.
First Solar closed Friday at $129.96, gaining $2.05, or 1.60 percent.
Monday, May 9, 2011
Solar's (FSLR) (SOLR) (CSUN) (PWER) (SOL) Facing Tough Times
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8 comments:
Yea Fully agree,
There seems to be some inside trading also going on fslr. I am definetrly bearish on this stock
I am amazed at how many people neglect to do proper research when posting generalities about the solar industry.
GT Solar for example has been ramping up their sales in Asia and those sales are coming from private companies, not government programs. They have a backlog of over $1.2 Billion and they as recently as last week announced new orders of over $330m. For a company with a market capital of around $1.3 Billion, they are doing just fine.
Do your research next time and stop trying to influence the little guys by stating irrelevant facts (ie. Italy and Germany) that do not pertain to all of the companies you mention (GT Solar - Almost all their business is from Asia - China, Taiwan, India, Singapore, Korea, etc.).
Absolutely!
GT Solar is really moving forward with their sapphire technology and those Asian orders keep coming.
Shh! Stop letting the cat out of the bag. I can still buy this great company for cheap b/c of this poor research!
My apologies. I too am waiting for it to dip a bit more before getting more shares. I bought in at $4.92 last year and have been avidly following GT Solar since. I can honestly say they are one of the most solid companies that no one knows about.
from what i know is that the solar might not be the best option for industrial use, but it is the best option for home use, and infrastructure. especially when the LED light is keep getting better and cheaper.
I am amazed at everyone's lack of industry knowledge. GT Solar is doing well right now as well as the other incumbent OEMs selling to the tier 1 Asian producers. However, Germany will be changing their FIT policy toward the end of 2011 - this will leave a large oversupply of panels in excess of 15GW for 2012. The inventory of the Asian producers will build up and panels will sell at marginal cost. Of course this will mean there will be no CAPEX by the Asian producers and OEMs like GT will suffer. Of course GT is a fundamentally strong company and will get through this.
You can already see this market trend in the backlog - strong but flat. My advice, buyer beware and know when to sell this year. There will be great bargains of course before the 2013 rebound. As for their LED, it is a great line of business but is too young to replace the lost PV revenues.
I agree. Get rid of subsidies for nuclear, oil, coal, and gas. Solar is almost on par in energy cost as oil in some countries.
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