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

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

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
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%
YHOO $36.60 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs