China Sunergy (CSUN) (ECA) (HPQ) (MT) Downgraded

China Sunergy Co. Ltd (NASDAQ: CSUN), EnCana Co. (NYSE: ECA), Hewlett-Packard (NYSE: HPQ) and ArcelorMittal ADR (NYSE: MT) downgraded by analysts.

China Sunergy Co. Ltd (CSUN) was downgraded by Collins Stewart from a “Buy” rating to a “Neutral” rating. They have a price target of $1.60 on the company, down from $2.50.

EnCana Co. (ECA) was downgraded by The Benchmark Company from a “Buy” rating to a “Hold” rating.

Hewlett-Packard (HPQ) was downgraded by RBC Capital from an “Outperform” rating to a “Sector Perform” rating. They have a price target of $30.00 on the company, down from $35.00.

ArcelorMittal (MT) was downgraded by Nomura from a “Buy” rating to a “Neutral” rating.

JA Solar (JASO) (JKS) (SPWRA) (CSUN) Under Pressure on Financing Uncertainty

Shares of JA Solar (NASDAQ:JASO), Jinko Solar (NYSE:JKS), SunPower Corporation (NASDAQ:SPWRA) and China Sunergy (NASDAQ:CSUN) all closed mixed Friday as the solar sector continues to be under immense pressure in relationship to financing concerns and legitimate demand.

With America facing its own sovereign debt crisis, masked by the seemingly endless amount of new money thrown at the economy by the Federal Reserve, the solar industry in the country is facing more uncertainty, as lawmakers look to make budget deals, which could cut financing from the U.S. Department of Energy for the sector.

That was after First Solar (FSLR) alleged they were told by the Department of Energy they were still being considered for financial assistance to construct three major solar plants in the country.

Funding challenges also face the international solar industry as many countries continue to struggle with the lack of capital to artificially prop up the industry.

It's widely known that the Italian has cut back on support for the solar industry, but German Chancellor Angela Merkel suggested on Friday her country needs to take a another look at feed-in tariffs again, saying they may be too high. Germany and Italy have been the two leading markets for solar.

A lot of focus has been on the removing of subsidies from the big oil companies, but in fact we need to have all energy subsidies removed across the board and the let the free market decide how it wants to produce and consume energy and electricity, not politicians.

JA Solar (JASO) closed Friday at $6.16, dropping $0.21, or 3.30 percent.

Solar Bubble (LDK) (CSUN) (SOLR) (FSLR) (CSIQ) Coming for These Firms?

The solar industry is under duress to say the least, and the very real possibility China may end up creating the first solar bubble is now being bantered about in the media, with solar companies like LDK Solar (NYSE:LDK) China Sunergy (NASDAQ:CSUN) GT Solar International (SOLR), First Solar (Nasdaq:FSLR), Canadian Solar (NASDAQ:CSIQ) sure to come under stress after a seemingly unhindered run for several years before 2009.

Forbes' William Pentland wrote, "The epic expansion planned for the latter part of this decade may create the world’s first solar-energy bubble. The existing solar supply chain is likely too shallow to sustain growth on this scale. Unless the industry develops scalable infrastructure over the next four years, China’s planned installation of 8 GWs of solar capacity annually between 2015 and 2020 is likely to create severe bottlenecks in the solar supply chain. These bottlenecks could radically inflate the price of basic materials like silicon and create labor shortages that would affect the costs of manufacturing solar modules, designing and installing new solar systems and operating and maintaining already installed systems."

Combined with Germany and Italy cutting back on solar subsidies, it would make the China market even more important as far as solar goes, and with little demand from other countries, will disproportionately affect to view of the industry. during the coming years, which appear to be very negative.

First Solar closed Monday at $130.04, gaining $0.08, or 0.06 percent.

Solar's (FSLR) (SOLR) (CSUN) (PWER) (SOL) Facing Tough Times

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.

Yingli (YGE) (ASTI) (SOL) (PWER) (CSUN) Trade Down as Solar on the Defensive

The terrible results of First Solar (Nasdaq:FSLR) in its latest quarter, coupled with declining subsidies from the two largest solar markets in the world - Germany and Italy - dragged down Yingli Green Energy (NYSE:YGE), Ascent Solar Technologies (ASTI), Renesola (NYSE:SOL), Power-One Inc (NASDAQ:PWER) and China Sunergy (NASDAQ:CSUN) Wednesday, as the all closed in the negative.

Sources say Italy has reached an agreement to cut subsidies from current levels by 22-30 percent in 2011, 23-45 percent in 2012 and by 10-45 percent in 2013.

Australia also announced they are going to cut A$1,000 from solar panel subsidies a it is pushing up the price of electricity in the country.

The country has already cut back on an initial individual household subsidy of A$8,000 in 2007 to A$3,700 today.

The Australian government also said federal subsidies on rooftop solar panels will end a year earlier than originally stated, some time in the middle of 2013.

With very little demand in India and America - considered two potential new markets for solar - it appears the solar industry is in for a long, rough ride.

Government just need to end the subsidies completely (as well as with all other energy subsidies), and let the market sort out what it wants for energy.

Yingli Green Energy (YGE) closed Wednesday at $11.25, down $0.34, or 2.93 percent.

Yingli (YGE) (CSUN) (STP) (ASTI) (JASO) Dragged Down by First Solar (FSLR)

Shares of solar companies Yingli Green Energy (NYSE:YGE), China Sunergy (NASDAQ:CSUN), Suntech Power Holdings (NYSE:STP), Ascent Solar Technologies (ASTI) and JA Solar (NASDAQ:JASO) weighed down by First Solar's (NASDAQ:FSLR) weak performance

Net income for First Solar plunged 33 percent to $116 million over the same quarter last year, as the company earned $1.33 per share. That was actually much better than the $1.16 a share analysts expected, but not able to overcome the weak net income numbers.

Revenue made no headway during the quarter either, reaching $567 million, although beating estimates of $544 million.

The company said in its press release that rising costs, lower net sales and reduced average selling prices had a negative impact on the quarter.

Even so, the company asserts it will be able to meet full year guidance, although the market, at this time, isn't buying into that. Net sales for the full year are expected to reach about $3.7 to $3.8 billion, with EPS coming in at a range of $9.25 to $9.75 a share.

All of this underscores the lack of a real market for solar energy, and is only a primarily a creation of numerous governments around the world, not the result of demand from consumers.

That's why Italy, when it cut back on subsidies, put the hurt on First Solar, which has huge exposure there.

The highly expensive and low-demand energy source can't compete in the real market, and solar companies will remain extremely volatile because many governments that support it, don't have the capital to back their ambitions in the sector.

JA Solar (NASDAQ:JASO) closed Tuesday at $6.34, falling $0.34, or 5.09 percent.