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
TheStreet Open House

Solar Stock Winners: Solar (Finally) Feeling the Love

Stocks in this article: LDKTSLYGESOLSTP

NEW YORK ( TheStreet) -- Long-term and short-term bullishness were evident in the best solar stock performers on Monday.

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player





LDK Solar (LDK) surged on Monday by 20% on the strength of a fourth quarter earnings pre-announcement that exceeded Street revenue consensus. LDK also released revised guidance for 2011 that exceeded its previous revenue and business targets across polysilicon, solar wafer, cell and module production.

At the same time, SunPower (SPWRA) shares surged by 8.8%, after the U.S. solar company announced more 711 megawatts in projects sold to Southern California Edison and slated for development from 2014 to 2016.





For LDK, the bullish news about the fourth quarter performance and 2011 outlook run counter to lots of solar supply chain noise about recent prices decline, particularly at the level of solar cell manufacturers. Indeed, another report in Digitimes on Monday stated that the gross margins of Taiwan-based cell makers could fall below 10% in the first quarter of 2011, with cell pricing per watt falling below the $1.20 mark at which many cell manufacturers break even.

Hapoalim Securities reported on Monday that channel checks in Europe show module pricing down by 5% to 10% in the first quarter -- $1.55 to $1.60/watt.

It should be noted that both LDK and SunPower are among the large group of solar stocks that remain favorite targets of shorters -- and, therefore, any positive news, particularly bullish earnings pre-announcements, will lead to a round of short covering.

LDK trading volume was huge on Monday, with more than 20 million shares changing hands on Monday, and gain of 20% for the Chinese solar stock. Typical volume for LDK is in the range of 3.6 million.

There were 15.8 million shares short on LDK as of the most recent Nasdaq short interest report on Dec. 15.

1 of 6

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!
DOW 16,627.52 +12.71 0.08%
S&P 500 1,944.69 +3.41 0.18%
NASDAQ 4,423.3760 +3.8980 0.09%

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