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What happened to solar stocks?

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Europe is still installing as many solar panels as ever, so what has happened to the stocks? TSL ( quote ) had simply terrible earnings on lower shipments and got crushed over the last few weeks: Between this and a few sputters in Europe over the last few months, other names in the sector sold off as well. It is true that the Italian solar market paused in March and April while the questions surrounding the new subsidy system were worked out. And bad weather in Germany was also an issue in most global solar companies disappointing the market with their first quarter results. But overall, the pricing environment -- normally the dealbreaker for solar -- remains decent and European demand has not evaporated. If anything, Japan's problems with nuclear power remind people around the world why they need to invest more heavily in solar power. Europe is topping the list but the United States is getting the message, and even China is onboard. Throw in oil prices that have receded from their recent highs, but are still raising concerns, and you have a recipe for a more robust solar sector down the road. Keep buying this weakness and get ready for a cycle of price upgrades.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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