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!

7 Solar Energy Companies On Watch If Panel Prices Bottom

The continuing rise in shares of First Solar (FSLR) makes it worth taking a second look at the solar energy sector. First Solar is up 140% after hitting a bottom in June 2012:

By comparison, LDK Solar (LDK), Trina Solar Ltd. (TSL) and JinkoSolar Holding Co. (JKS) all reported weaker quarterly revenues. The industry is being hurt by oversupply, lower demand. This led to flat to negative margins for suppliers.

Solar prices are down 21%, and Trina Solar may now want to set a floor price to cap further declines. If rivals do the same thing, this may mark the bottom for more losses.

When Trina reported results, the company saw sales decline, to $298 million, nearly 40% compared to the year before. Shipments declined 9.2% to 380 megawatts.

Trina is operating at 50% of capacity. By comparison, First Solar was operating at an 83% capacity, during its quarter. First Solar forecasts it will run at 90 to 95% in the next quarter.

LDK, Trina, and First Solar Compared:

Solar Prices Could Be At a Bottom

Panel prices averaged 79 cents a watt on November 5, 2012, up from an all-time low of 67 cents a watt reached on September 24.

Supply Glut Could Alleviate

If manufacturers stop chasing market share, the excess supply of solar panels could alleviate in the next few quarters. This will also help companies generate a profit instead of a loss for each sale.

Other Solar Energy-Related News

Canadian Solar (CSIQ) received financing to construct a 49MW solar project.

LDK Solar (LDK) beat estimates in its quarterly results, but guided far lower revenue. The company now expects revenue to be between $230 million – $290 million. The previous consensus estimate was $552.4 million.

First Solar (FSLR) won a small project in China’s Xinjiang province to supply 2 MW of modules.

Business Section: Investing Ideas

Looking to follow the trend? Keep in mind First Solar has the strongest upside and should be the first solar energy company to look at. The company is concentrating on grid-energy supply instead of rooftop solar.

First Solar, Inc. (FSLR, Earnings, Analysts, Financials): Manufactures and sells solar modules using a thin-film semiconductor technology. Market cap at $2.58B, most recent closing price at $29.61.

 

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!
DOW 17,079.57 -42.44 -0.25%
S&P 500 1,996.74 -3.38 -0.17%
NASDAQ 4,557.6950 -11.9260 -0.26%

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