Investor Q&A: Is a Solar Rebound Possible? (FSLR, TSL, YGE)
A reader wrote in with this question: “What is your opinion on the future of the solar sector now that stock prices have decreased (with margins) across the board? Is a turnaround possible now that we are starting to see a bit better macroeconomic numbers? I am primarily looking at companies like First Solar (FSLR), Trina Solar (TSL), and Yingli Green Energy (YGE).”
NextInning.com’s recent report on the solar sector and its potential, available free to trial subscribers, answers his reader’s question about the future of the solar sector and looks at how investors can leverage new developments for potential profits. Next Inning’s model portfolio has returned 304% since 2002, over six times the return of the S&P 500.
Here is just a tiny sample of what Editor Paul McWilliams wrote about the solar sector in his report:
“There are quite a few applications where solar/wind/alternative energy will be the only answer as economic growth opportunities continue to spread to areas that are not supported by any standard power grid, let alone one that is reasonably dependable. I’ve stayed in fairly modern third world settings where you could depend on the power grid going down for a prolonged period at least once per day. That is very disruptive for a country that has an opportunity for strong economic growth. I’ve also been in places where there is no grid, but people who would jump at an opportunity to better their economic condition. Those are areas where alternative sources for electricity make economic sense right now.
“The problem is so much of the solar economy that sent stocks like First Solar to highs above $150 was based on government-funded programs rather than pure economic sense. Due to the fact that we cannot predict what the government might do from day to day, that is a fragile business model and a risky prospect for investors…”
More on this topic (What's this?)
Solar Soars Again: Is A Pull Back Looming? (The Market Financial, 5/13/13)
First Solar (NASDAQ: FSLR) Bets on Higher Demand (Energy and Capital, 5/8/13)
Every Solar thermal Plant in India is delayed, still the Government wants to award more (Green World Investor, 5/13/13)
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