This from the editors at Investment U:

In the news this morning, Trina Solar (NYSE: TSL) announced that fourth quarter revenues would beat expectations.

It’s an unexpected bit of data when many were starting to count the solar sector out – and not for good reason. After our last energy crisis, many alternative energy producers, like solar, were simply forgotten about when gas prices came back down.

With the average price per gallon at around $1.96, who could blame them if they expected the same thing to happen? But the interesting thing is that it hasn’t.

Trinity Solar follows news from Suntech Power (NYSE: STP), the world’s largest solar module producer, that it expects production to increase – almost 60%. That’s quite the opposite of a drop-off.

Granted, there are just as many solar losers, as winners. Canadian Solar (Nasdaq: CSIQ) reported negative numbers along with a number of others, from Applied Materials (Nasdaq: AMAT), JA Solar Holdings (Nasdaq: JASO) and GT Solar International (Nasdaq: SOLR).

But the fact that we are seeing resilience form the solar sector and companies holding their own, means that this time around might be a little different than last. And that’s a good signal for us to keep our eyes on solar.

Because any strength in this market is impressive, regardless of where it is.

Source: Sun Still Shines on Trina Solar (TSL)

Since then, however, concerns of oversupply have whacked solar stocks. This prompted Goldman Sachs (NYSE:GS) to downgrade several solar companies to a “sell”.

J. Cristoph Amberger says the current financial crisis will hurt investment in solar power. He recommends investors sell their positions while they still can.

This from Today’s Financial News:

Two key solar stocks are being hit hard in early indications. First Solar, Inc. (NASDAQ: FSLR) had already cut its 52-week high of $317.00 by more than half. Trading below $140 today (down 10%-plus), it’s still twenty bucks above its 52-week low of $124.96.

SunPower Corporation (NASDAQ: SPWRA), too, has been decimated. (In fact, “decimated” — meaning a violent elimination of a tenth! — seems too tame a term to describe what’s happened!) The stock is worth just a third of its 52-week high of $164.49, trading just above its 52-week low of $52 right now.

My own recent recommendation of Yingli Green Energy (NYSE:YGE) is down to $7.59 (-10.50% just today) for a total loss of -55.58%.

I do not believe the stock will double any time soon for us to break even on it. Goldman Sachs’ change of direction tell me we’re in for a sea change in the attitude toward solar companies in general, beyond the upheaval in the current market.

My original call on Yingli — which we had covered since its IPO back in the Taipan days — was motivated by expectations that Obama will win the election, unleashing a tidal flow of speculative money into “politically correct” investments. A flow triggered by the expectations of a Federal gravy train of subsidies that could make up for the economic shortcomings of solar energy.

That money may still be coming. But overall, I believe recent fascination with solar is a Prosperity Phenomenon. It’s the equivalent of a Levenger catalog (”Tools for Serious Readers”) or an Eagle Scout project marking storm drains in prosperous suburban neighborhoods with “Don’t Dump” stencils. (I did that last Saturday!)

Large-scale adoption of solar technology by consumers represents a huge investment. And currently, it doesn’t look like there will be excess play money lying around anywhere… or credit being extended.

Plus, there’s talk of a huge solar over-supply by 2010.

My recommendation: Solar technology is the new bio-ethanol. Sell while you still get money for your shares.

Source: The Death of Solar? Yet Another Bubble Has Popped!

Even helicopter Ben is worried. He’s told Congress that inflation risks have “intensified” and that there’s now a threat of “significant downside” to growth.

But contrarian investors should be lapping it up, says Marc Lichtenfeld in The Smart Profits Report. A bear market is where bargains are made.

Marc has put together a list of stocks that performed well in during the last bear… and four stocks that are currently battling the bear head on…

Rewind: The Best Bear Market Bets From 2000-2002

When you’re faced with a challenging market, one option is to look for the stocks that historically perform well during downturns. You’ll often find that the companies that not only weather the storm, but thrive during it, are the ones that lead the pack once the market stabilize and heads higher again.

Here are some examples of stocks that held up well during the last bear market, which growled from March 2000 to October 2002. During that time, the S&P 500 lost a whopping 50.4%.

Ventas (NYSE: VTR): Check out these results. While most other stocks were in freefall, Ventas gained a sensational 578% and then went on to post additional gains of 356% at the stock’s high.

THQ Inc (Nasdaq: THQI): Investors who held on to THQI during the last bear were rewarded with a return of 68%. But that pales in comparison to the 178% gains at the stock’s high afterward.

Manor Care: Shares jumped 36% during the last bear market. However, by the time the Carlyle Group bought the company in 2007, its shares had rocketed another 255% since the end of the bear market.

But I imagine you want the best stocks to invest in during a bear market today. Below are a few stocks to look into. They are all trading well during what has been a treacherous market. That should be some indication that their prospects are especially bright.

Fast Forward: The Best Bear Market Bets Today

From solar power, to biotech, to healthcare and hospice services, these four companies are currently battling the bear head-on… and winning.

Canadian Solar (Nasdaq: CSIQ): Shares of this Ontario-based manufacturer of solar modules have skyrocketed over the past year. Although currently 25% off its high, the stock is still well-placed to profit from high oil prices, and with the company having recently raised its revenue outlook, there’s no reason to think that solar stocks will quit any time soon.

Note: Solar power is still a young, up-and-coming industry in stock market terms. Our newly added technology expert Paul Moore is cautious on the sector and I’m sure he’ll have more to say about solar in coming months.

Moving to the healthcare area, several names have recently hit 52-week highs…

Allos Therapeutics (Nasdaq: ALTH): Shares of this biotech company have recovered nicely since the firm’s brain cancer drug failed Phase III trials last summer. At the moment, its leading candidate, PDX, is in Phase II trials for T-cell lymphoma. The company raised over $65 million this spring, so it should have enough cash to fund its research in the near-term at least. Allos is not expected to generate any revenue this year, though.

Amedisys (Nasdaq: AMED): This profitable provider of home health and hospice services is projected to earn $2.73 per share this year and $3.32 next year. However, not everyone is bullish on AMED. Over 26% of the float is sold short. So either the bears know something, or there could be a big short squeeze coming if the stock continues to rise. Note: The company’s earnings report is scheduled for July 29, which should provide more clues.

Sequenom (Nasdaq: SQNM): This genetic and molecular diagnostics company has seen its shares quadruple since April. But the stock really started cooking in June when the company announced very strong results in tests to determine Down Syndrome in fetuses using the mother’s blood. The Down Syndrome testing market is at least $1 billion and if Sequenom’s tests are proven superior, the company could be in the position to grab much of that revenue.

Source: The Best Stocks to Invest in During a Bear Market

• China-based Canadian Solar Inc. (CSIQ) boosted its revenue forecast for the second quarter, sending its shares up over 18% yesterday (Monday). Canadian Solar announced that net revenue for the second quarter will be between $210 – $214 million, Reuters reported, well above analyst expectations of $187.5 million. Shares gained $5.99 to close at $38.39.

• Waste Management Inc. (WMI) yesterday (Monday) announced an unsolicited bid for rival Republic Services Inc. (RSG) in an attempt to derail Republic’s own bid for Allied Waste Industries Inc. (AW). The $34 per share cash bid represents a 22% premium over Republic’s July 11 closing price, Bloomberg News reported.

• Concerned IndyMac Bancorp Inc. (IMB) customers queued outside branches yesterday (Monday) to withdraw money from the financial institution that was seized by federal regulators on Friday. IndyMac is the largest regulated thrift to fail in U.S. history, BusinessWeek reported. IndyMac shares have been completely gutted and are down over 97% year-to-date.

• President George W. Bush announced yesterday (Monday) that he had lifted an earlier ban on offshore drilling in the outer continental shelf due to high oil costs. “Today I’ve taken every step within my power to allow offshore exploration of the OCS,” Bush said in a statement at the White House, Bloomberg News reported. “This means the only thing standing between the American people and these vast oil resources is action by the U.S. Congress.”

• Apple Inc. (AAPL) said yesterday (Monday) that it sold 1 million units of the new iPhone in its initial weekend. The original iPhone, introduced in late June 2007 in the United States only, sold about 270,000 units in its first two days, Reuters reported. Sales had topped 1 million units by early September. The new device sells in 21 countries.

• Airlines from oil-rich Middle Eastern countries booked orders for around 150 planes worth more than $25 billion the world’s largest air show The Associated Press reported. Many European and U.S. airlines have refrained from signing big deals at the Farnborough International Airshow as they cope with soaring fuel costs and sluggish passenger demand.

• Russia’s energy projects, all of which have foreign participation, failed to achieve their oil production targets in 2007, Russia’s Audit Chamber said in a statement yesterday (Monday). Declining oil production became a hot topic in Russia after the world’s No. 2 oil exporter saw output fall in the first quarter for the first time in years, The Associated Press reported.

• Royal Dutch Shell PLC (RDS.A, RDS.B) has agreed to buy Canada’s Duvernay Oil Corp for $5.9 billion, according to Reuters. “Duvernay has an unmatched position in terms of leverage to (natural gas) resources,” said Robert Fitzmartyn, an analyst at FirstEnergy Capital.

Source:  Global Investing Roundups Tuesday, July 15th, 2008