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
TheStreet Open House

3 Key Solar Stock Trading Triggers

Stocks in this article: FSLRSPWRASOLHSOLTSLYGESTPDQLDKSOLR

Solar stock, green energy story updated for Credit Suisse market analysis)

NEW YORK ( TheStreet) -- There is a stark divide between short-term and long-term solar stocks trading triggers right now, as stark as it has been in recent memory. The long-term, sentiment-driven trade is leading solar stocks higher, while uncertainty regarding Italian solar policy changes and first quarter weakness could serve as negative catalysts in the near-term for the solar sector.

On Wednesday, solar stocks were rising again, with China's Trina Solar (TSL) rising 4%, to within reach of a share price it hasn't attained since January.

A Reuters report citing anonymous sources in China indicated that China may double its solar installation goal in its new five-year plan to 10 gigawatts, as a result of the Japanese nuclear crisis and a reining in of China's nuclear ambitions. The report was just the latest after effect from the Japanese nuclear crisis driving a bullish long-term trade on solar stocks. On Monday, the results from the German elections served as another rally maker for solar stocks related to anti-nuclear sentiment the largest solar market in the world.

With the Wednesday trading action, investors can add to the sentiment-driven trade, with President Obama once again making a major energy policy speech voicing support for renewables and the goal of one-third less reliance on foreign oil within a decade. A foundation underneath all of the exogenous events related to global energy policy are two long-time bullish trading triggers for solar: oil prices above $100 and the euro, even amid continuing debt woes in the EU, holding above $1.40.





Most of the solar stocks were higher, too, with SunPower's (SPWRA) 2% gain the most prominent among U.S. solar stocks. SunPower would also gain on any expectations that Italy will grandfather existing projects from new lower feed-in tariff rates, as it has a slew of projects in Italy slated for September 2011. The recently unofficial commentary from Italy has focused in part on assuring the solar market that current projects will be insulated from 2011 FIT changes.

The exception to the solar rally rule was First Solar (FSLR), which received a negative headline late on Tuesday when Securities and Exchange Commission filings revealed that former CEO Michael Ahearn has again significantly reduced his stake in the solar company, a filing highlighted in a Wall Street Journal report insinuating that the former First Solar executive's outlook on solar energy may have "dimmed." Ahearn cut his stake in First Solar almost in half over the past month. Ahearn, who still serves as non-executive chairman of the First Solar board of directors, sold 800,000 shares valued at $118.9 million in the past month through March 25.

Solar Investor: Test Your Solar IQ
Test Your Solar IQ
In any event, let's take a look at some of the current trading triggers in solar...

1 of 5

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 16,787.08 +109.18 0.65%
S&P 500 1,962.05 +11.23 0.58%
NASDAQ 4,472.1330 +19.3410 0.43%

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