The solar industry is a fantastic place to rake in short-term gains. But stick around too long and you will wonder if it would have been cheaper to heat your house with dollar bills.
The US consumer is on life support. Retail sales cratered in September, and consumer confidence indexes are at rock bottom. Uncle Sam is gearing up for a new New Deal to resuscitate the patient, says Justice Litle. It will focus on alternative energy projects… and could create the next big bubble.
It’s been a bumpy ride for solar stocks recently.
The industry received a boost when clean energy tax credits were added to the $700 bailout bill to help its passage from Congress. But fears of falling demand and oversupply have weighed on solar stocks. The Claymore/MAC Global Solar Index ETF (NYSE:TAN) fell 35% in the first eight trading days of October.
William Patalon III, however, says new mapping technology and advances that have made solar power more eco-friendly will boost solar stocks in the long run.
Solar energy was given a boost last week after $18 billion in tax credits for clean energy were tacked on to the bailout bill to ease its passage through Congress.
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.
Clean energy ETFs became hugely popular in 2007. But they’ve been taking a beating since this August, when crude oil prices began to fall from their year highs.
Nevertheless, Jim Stanton says alternative energy — and the wind-energy market in particular — has a big future. Wind energy is already the second largest source of new power generation in the US, and it now has the backing of the much-hyped Pickens Plan.
Jim says two clean-energy ETFs that look undervalued right now are PBW and GEX. He also recommends FAN for a more wind-specific ETF.
The crisis on Wall Street has effectively stopped funding for alternative energy projects.
But an even bigger problem has been the coming expiration of energy tax credits for the manufacturing, production and use of alternative energy systems and devices at the end of 2008. This situation has now changed with the $18 billion Renewable Energy and Job Creation Act of 2008.
David Fessler at Investment U says three alternative-energy ETFs should see “big moves” in the remainder of 2008 and in 2009 on the back of the bill.
Taipan Publishing’s Justice Litle says solar energy in the U.S. is about to take off.
Goldman Sachs (NYSE:GS) is buying up tens of thousands of acres of empty Nevada desert. And industry experts forecast a $45-billion market developing over the next decade, with Nevada at the heart of it.
As momentum builds, Justice says there will be big profits up for grabs for investors with their fingers on the pulse.
Dan Denning says Australia is the buckle on the global sun belt. This makes the country perfect for solar energy projects. Like the one recently announced by Worley Parsons (ASX:WOR): the Pilbara solar project…
Monday’s alt energy results can be summed up in four words: Solar shines. Fuels flop.
Quarterly earnings tripled for Chinese solar maker LDK Solar (NYSE:LDK) on soaring demand for solar power, while ethanol producer Pacific Ethanol (NASDAQ:PEIX) reported a wider-than-expected loss on surging corn prices.
J. Christoph Amberger in Today’s Financial News says these results create a great opportunity for investors. Yesterday, shares in LDK Solar rose 15 percent. And J. Christoph reckons solar maker ReneSola (NYSE:SOL) may now do the same…
