The new stimulus act has a generous renewable energy provision for Solar and Wind Energy, so what gives with investors?
(besides no cash ;-) Hmmm... maybe related to... Sunburn ?? Solar stocks have recently been doing not much better than banks, and many investors got burned - even as the companies were going great balls of fire. When you bid a company up too high there is no place to go but down, apparently - no matter how brightly you glow in a general downturn. Suntech Power (STP) stock, down 95% from $90 to $7; LDK Solar (LDK), down 95; Energy Conversion Devices (ENER) down from $80 to $25, Sunpower (SPWRA) from its 52 week high of $130 to $32; First Solar (FSLR) slid from $310 to $120; Yingli Green (YGE) down from $40 to $4; Canadian Solar (CSIQ) down from $50 to $4 . Even First Solar, the darling of investors, has lost 2/3 of its former shine despite fantastic results. Wow. This is a stock that could be over $500 in a few years... or not. In other words, the whole solar sector went from overpriced to probably underpriced at almost lightspeed. Check this out: http://www.bizjournals.com/phoenix/stories/2009/02/23/daily23.html Jones
