NEW YORK (
) -- Not a trading session goes by of late without a solar stock, or two, or three, skyrocketing on a shipment raise, new order, or earnings guidance revision upwards.
For Tuesday's version of the solar winners session, it's looking early like two upstart Chinese solar module makers and one U.S. inverter company are the stocks with positive momentum, yet big gains from the pre-market session were quickly moderating for these solar stock plays.
2010 Chinese solar module rally king,
has at least one rally left in it, even after surging 60% year-to-date.
(JKS - Get Report)
, which was among the biggest winners on Monday in the solar sector, is leading the returns early on Tuesday after announcing another 130 megawatt order from an existing customer.
The Chinese solar module makers are being joined by U.S. solar inverter maker
, which announced that it had won a contract to supply inverters for a 63 megawatt project in Puerto Rico.
SatCon was up more than 5% in early trading, with Jinko and Solarfun shares higher by between 3% and 4% in early trading.
Solarfun said it had already reached its 2010 year-end target of 360 MW in ingot manufacturing capacity, 400 MW in wire saw capacity, 500 MW of cell capacity and 900 MW in module capacity. The Solarfun target was an increase of 100 MW in cell capacity and 200 MW in module capacity compared to the end of the second quarter of 2010.
Solarfun also announced that it plans to add to the gargantuan capacity being planned for 2011 by solar players, taking cell capacity from 550 MW to 820 MW; wire saw capacity from 400 MW to 572 MW; and ingot capacity from 360 MW to 510 MW. The capacity expansion isn't expected to be completed until the third quarter of 2011.
Stoking the already optimistic outlook from the solar sector companies as they meet this week in Los Angeles at a big solar conference, Peter Xie, CEO and President of Solarfun, commented in the release, "We are optimistic about our prospects in 2011. Our goal is to make Solarfun more fully vertically integrated as we seek to lower our manufacturing costs and become the leading low-cost producer in the market. As our current projections indicate, the expected capital expenditures will be spent on expanding ingot, wafer and cell capacities, which we believe will help improve our cost structure over time."