 |
|
|
SOL is the world leading producer |
|
|
of solar wafers. |
|
|
Released on Wednesday, November 30, 2011, 9:00 PM ET
Pittsburgh, PA (SpeculatingStocks) - ReneSole Ltd. (NYSE:SOL) is the world leading producer of solar wafers and is based out of China. It, along with a conglomerate of Chinese solar product manufactures, such as Yingli Green Energy (NYSE:YGE), JA Solar Holdings (NASDAQ:JASO), China Sunergy (NASDAQ:CSUN), have been holding out through a long-run of downward trending prices, sustaining losses which have crippled the market capitalization of these firms, rendering many small- or micro-cap. in nature.
What’s exactly has been causing this recent down turn in what would seem otherwise to be a stable, non-volatile sector? According to analyst there is a lack of demand in the solar markets for the solar wafers and producers of manufacturers, causing an impending decrease in the stock price of those companies. More notably of this effect is a compounded effect of small margins on their products and a need to continuously expand the array of styles of solar producing units.
In America earlier this year, Solyndra, a solar energy manufacturing company based out of California defaulted on a government loan—sending media into a frenzy. Solyndra filed for bankruptcy shortly thereafter, an action which set the rest of the solar sector into a downward spiral. China does not seem to have been spared from this global sector depression, regardless of the “rarely seen ‘sale’ status” relayed by the Wall Street Journal earlier this week.
There doesn’t seem to be an end in sight for this pressured market, but it could be cheap. The savior for solar produced energy will be a global resurgence in eco-friendly energy—an aspect many have strayed away from due to the recession. SOL has dropped over 80% since March of 2011, and is currently trading at $2.00 per share (4:00 PM EDT, November 30th, 2011), and it might continue to go lower. This could be an entire sector that would benefit your portfolio with a nicely strategized short-play.
However, as stated above keep your eye on the price and any momentum movements, the sector could rebound, especially if local and national governments begin to subsidize these companies to produce solar-energy harvesting products.
Find more stocks on the SpeculatingStocks homepage.
Comments:
