Solar Winners: Hoku, GT Solar, Spire
NEW YORK (TheStreet) -- Some of the smaller companies on the solar landscape ended Tuesday's market session as the only solar players with gains on the day. The biggest news of the day came from one of the smallest players, with $70 million market cap company Hoku Scientific (symbol) leaving the rest of the solar sector with burn marks from its whopping 21% gain to go along with an astronomical increase in trading, from 83,000 on average to over 1 million shares traded today.
GT Solar, much larger than either Spire or Hoku with a $740 million market cap, was up 1.4% on the day and also saw a big spike in trading volume -- 1.8 million shares traded on Tuesday versus an average of $754,000. There is a logic that could dictate why GT Solar moved up on a day when Hoku's news about a plant in Idaho received such extensive play.
Adam Krop, an analyst at Ardour Capital Management, said while he would not buy into this theory himself, investors could make a correlation between Hoku and GT Solar along this line of thinking: if the outlook is good for the Hoku polysilicon plant construction in Idaho, Hoku might need more equipment, just the type of equipment that GT Solar makes. However, knowledgeable investors know that Hoku has an existing agreement with German company GEC/MSA, which still includes a backlog of 10 pre-ordered reactors."If this did trigger the run-up in GT Solar today, I wouldn't buy into it and it's at a fair value of between $5-$6," Krop said. GT Solar closed at $5.15 on Tuesday.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV