This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Solar Stocks a Core Holding Now, Poll Says

Stocks in this article: FSLR JASO SOLF LDK YGE SOL

NEW YORK ( TheStreet) -- The major solar earnings reports will begin this Thursday when solar-sector bellwether First Solar (FSLR) reports. First Solar may be the bellwether, but reaction to its earnings doesn't always set the stage for the rest of the sector. Recent quarters have seen First Solar beat expectations and still flop in terms of market reaction -- some analysts contend it's been a result of First Solar being overly conservative in its outlook.

First Solar hasn't been conservative recently, though. The solar bellwether announced 380 megawatts of orders beyond its expected shipments in 2011, and announced plans to build two new plants in the U.S. and Vietnam as the solar industry continues its growth into 2012.

The First Solar sentiment headed into earnings season was backed by just about every signal, too. The euro rebound alone has made First Solar bear positions very vulnerable. The continuing demand and the stabilization of pricing in the market has also supported solar shares, which after an extended rally, can be said to reflect expectations for another season of solid earnings, likely plenty of "beats and raises" among the solar companies reporting.

Volatile sectors like solar are also ripe for profit-taking. The euro may be at $1.40 now, but it caused the entire solar sector to crash just a few months ago. Fears of an event beyond the control of investors betting on short-term solar fundamentals is ever-present.

In the last week or so, the fears materialized in the form of the trade and currency war with China. The U.S. Trade Representative said he would be elevating a petition made by the United Steelworkers Union to cite China for unfair trade support of its green energy companies.

Many solar investors have used words we can't print to refer to claims that the sector sold off based on China concerns. There are good arguments to be made that the unfair trade support claims are unfounded when it comes to Chinese solar companies specifically, and what's more, would take so long to work their way through international courts that it's a non-starter as an investment issue. Nevertheless, the fact that solar bulls on the Street were out last week with reports downplaying the fears stoked by China are some kind of proof it must be in the minds of investors, in the least.

Many Chinese solar stocks have sold off, too. In reality, though, the Chinese solar stocks didn't need the negative political news flow to merit a selloff. In a sector like solar, after a period of healthy gains, a pullback involving profit-taking investors is part of typical trading action.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs