Solar Investing: Big Potential, Big Risks

[Jason]

More and more Fortune 500 companies are now seeking to reduce their carbon emissions by adding solar power. Verizon Communication Inc., the largest U.S. wireless carrier, is investing almost $40 million to triple its use of solar energy this year. While solar technology is proven and promising, the solar industry is still full of risks for investors. SolarWorld is experiencing a deflated stock price even after winning the trade case against Chinese solar module makers. As the US solar market matures and a level playing field is established for both domestic and foreign production, some formerly hidden business problems will become more clear. All solar companies are not equal. Investors should learn the particularities of each individual company and how that company is positioning itself in the market before taking the leap and investing in solar companies.

More...

[Ian S]

What a difference a couple of years make!. SPWR then: $4/share; today: $39/share. Read that thread: all gloom and doom. A few months later, more gloom and doom. I especially liked this comment from the latter thread:

It is not only Suntech but the same can be said for all solar panel manufactures. Most will go bankrupt. You cannot stay in biz if it cost you $2 to make your gizmo, and have to sell sell it for $1.90. Most folks do not know most of the manufactures are technically already out of biz as they have shut down manufacturing and production. All they are doing is liquidating stock to cash out before they file for bankruptcy and let the Bond Holders get stuck with worthless paper.

Yikes! I hope no one shorted SPWR stock after reading that. At this point I'd not be too anxious to get into these stocks with the runup they've had. Better to buy YHOO and get BABA on the cheap later this month. LOL!

[waleed345]

I wouldn't invest in them. They've lagged the DJ Utility index by 14% over the past year. The AZ Secretary of State is investigating some of the dark money outfits that APS has been funding on the down low in order to get its lackeys onto the Corporation Commission. If they campaign well, the Dem candidates for the Commission stand a good chance this fall.

[J.P.M.]

What a difference a couple of years make!. SPWR then: $4/share; today: $39/share. Read that thread: all gloom and doom. A few months later, more gloom and doom. I especially liked this comment from the latter thread:


Yikes! I hope no one shorted SPWR stock after reading that. At this point I'd not be too anxious to get into these stocks with the runup they've had. Better to buy YHOO and get BABA on the cheap later this month. LOL!

FWIW, I plan on bailing on my solar stuff in about another year +/- some.

BTW, SPWR opened today at $30.00/sh.

[Sunking]

Year might be too long with price of oil dropping. Today it is up on news of a joint venture with China. Imagine how the folks feel that bought back in 2007 when it peaked at $150. Bears make a lot of money shorting solar stocks. All you gotta do is watch price of oil to know where it is going.

[Ian S]

You all should have bought Yahoo! like I suggested. Up 18% while S&P up less than 1%! LOL

[johndev]

I don't think that there is so Big Risks, but I wouldn't invest in them too.