Solar stocks rebounding, time to buy?
Answers
2082 points
alanj answered one year ago …
Not unless you think oil is going to reverse direction. And I don't see it. Oil just recently broke below $40 support which, means the next support level is around $20-$25 range. And the demand for oil/oil products is down. Two reasons (1) When people are being laid off they are no longer buying gas to drive to work. (2) When people are no longer buying products like they use to the manufacturers of those products will stop or slow down the rate of making those products. Which, will result in less demand for fuel. Some industries rely on gas or diesel to run their equipment. Others use electricity which primarily comes from coal. Which, will result in less demand for coal. Less demand for coal will result in less mining for coal. Which, will result in less use of the heavy equipment which is used for mining coal. And a lot if not all of that equipment using fuel which comes from oil. Less demand for oil will result in lower prices. I'd wait until oil starts trending back up.
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731 points
thinker70 answered one year ago …
It may be a little premature. Once Obama is inaugurated and initiates some additional incentives for energy alternatives there is likely to be somewhat of a bounce.
One strategy that could be employed here is to determine exactly which solar stocks you are seriously interested in, decide at what price you would want to buy that stock, and SELL NAKED PUTS at that price for your chosen time frame.
If your price is never reached you get too keep the premium you are paid for offering to buy someones shares at a specific price, (downside protection for them) the only drawback being that your broker will demand you keep a portion of the purchase price on deposit until the put expires, so in most cases you will want to stay with a few months time frame
3963 points
MNSL answered one year ago …
In the long run some solar stocks will outperform market.
Few solar companies will prosper in the medium term once their compeitiors beocme bankruprt. Those who maintian lower cost, lower debt and have better market for their products and better customer services will survive.
Pl see following link:
http://www.guardian.co.uk/business/feedarticle/8165544
LOS ANGELES, Dec 18 (Reuters) - As dismal as 2008 has been for solar stocks, next year doesn't look any brighter.
Funding for solar projects and factory expansions remains scarce, prices on panels are falling faster than expected as supplies jump, and a dramatic drop in oil prices has tempered investor appetite for renewable energy stocks.
There is palpable optimism, however, that the new U.S. presidential administration will move rapidly on legislation to boost demand for alternative energy sources. Still, it remains to be seen how quickly that would get done and what form it will take.
"It will be a tumultuous year for most solar companies," said Karina Funk, an analyst with Winslow Green Funds in Boston.
The WilderHill Clean Energy index .ECO>, whose components include SunPower Corp, First Solar Inc, Suntech Power Holdings Co Ltd and other solar companies, is down about 70 percent so far this year. That far surpasses the nearly 40 percent decline in the Standard & Poor's 500 index .SPX> in 2008.
