This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

JA Solar, LDK Solar, ReneSola: Solar Selloff

NEW YORK ( TheStreet) -- JA Solar (JASO - Get Report), LDK Solar (LDK) and ReneSola (SOL - Get Report) are leading losses among Chinese solar stocks on a profit-taking day for solar investors.

There's been a triumvirate of macroeconomic concerns out of China of late. First was the declaration of currency war against China with implications for Chinese companies exporting products. It was followed by last week's decision from the Obama administration to pursue the petition made by the United Steelworkers Union alleging unfair trade support for China's clean energy sector. (There was a selloff in the solar sector on Friday that has been attributed to a combination of both factors by solar analysts.)

Finally, this morning's announcement from China's central bank that it will raise interest rates sparked a market selloff. The Chinese central bank move may have less specific implications for solar stocks than the currency or trade war, but its general impact on the markets on Tuesday could be the primary culprit for a losing day in solar.

JA Solar shares were down by more than 9% early on Tuesday afternoon. JA Solar's average daily trading volume was eclipsed by 1 p.m.

LDK Solar shares were down by more than 14%, and trading was on pace for twice the average daily volume in LDK trading.

ReneSola shares were down by more than 10% and had already reached double their average trading volume by the early afternoon on Tuesday.

A bullish call on Tuesday by Deutsche Bank focused on Chinese solar stocks could do nothing to stop the profit-taking in solar. Deutsche initiated on Suntech Power (STP) at a buy, citing low valuation, but Suntech shares were down by more than 7% and also reached twice their average daily trading volume by the early afternoon on Tuesday. Raymond James also upgraded Suntech Power on Tuesday.

Deutsche also reiterated a buy on Tuesday big loser ReneSola, as well as Trina Solar.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
STP $0.53 0.00%
LDK $0.00 0.00%
JASO $8.40 -1.87%
SOL $1.26 -3.82%
TSL $9.01 -4.96%


Chart of I:DJI
DOW 17,750.91 -140.25 -0.78%
S&P 500 2,063.37 -18.06 -0.87%
NASDAQ 4,763.2240 -54.37 -1.13%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs