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

Solar Stock Winners: Solar (Finally) Feeling the Love

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

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%
SOL $1.25 -4.60%
TSL $9.02 -4.90%
YGE $3.07 -15.00%


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