Solar stocks feeling the heat
Solar stocks continue to drift lower showing no signs of stopping. I personally follow the following solar stocks:
- SunTech Power (NYSE: STP) - SunTech Power has been punished the most out of all the solar stocks. The Chinese company recently stated that a news story in a local Chinese business daily regarding 2 billion yuan investment to build two polysilicon fabs in Luoyang, China was incorrect. The stock was punished even more following this news. The stock seems to be closing in on its IPO price.
- Sunpower Corp. (Nasdaq: SPWR) - Sunpower is not to far behind Suntech Power as far as the recent sell-off goes. SunPower recently did a public offering of 7 million shares at $29.50 per share and is actually below that price right now.
- Evergreen Solar (Nasdaq: ESLR) - See my article on Evergreen solar here.
- MEMC Electronic Materials Inc. (NYSE: WFR) - The polysilicon producer has been helped by the shortage of polysilicon and the soaring prices. This company is usually considered a good way to play the solar market since it produces polysilicon. Nevertheless, it too has been affected by the broad market sell-off.
So is it a good time to buy solar stocks? Well of all the above mentioned companies only SunTech Power and MEMC Electronics are profitable. Also, all these stocks are very speculative and swing very fast in either directions. With the market the way it is right now it might just be prudent to just keep an eye on these stocks for now.
June 16th, 2006 at 1:16 am
No its not a good time to buy these solar stocks. According to me they are going to drop down further as profits are very low. Just wait and watch for a couple of weeks.