This Day On The Street
Continue to site
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

Lower Energy Prices Throw a Cloud Over Solar

It's hard to argue that the Peak oil theory hasn't been turned on its head. The theory is still intact. But as long as improvements in oil recovery outpace demand, the amount of time before the end of fossil fuel is extended.

More important for solar investors, the price of conventional energy continues to remain affordable, thus placing a cloud over solar's profitability.

Dim profitability for solar profits will exert downward price pressure on solar stocks. Case in point is every stock other than First Solar in the last week.

Even First Solar hasn't experienced much in terms of real buying. First Solar's short interest was over 30% before the jump. Other than shorts covering due to the squeeze, there hasn't been enough buying pressure to match the closing price, much less take out the high of $41.


If you want to know if the move higher in First Solar has legs, keep a close eye on USO and UNG.

If oil and natural gas continue their trend lower, you can forget about the solar space entering into a bullish trend higher. It's a little late to take gains in the solar names other than First Solar. You may not want to short First Solar because it's so heavily shorted already, but now may be a good time to grab some or all the profits off the table.

At the time of publication the author had no position in any of the stocks mentioned.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.

2 of 2

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
Submit an article to us!
SYM TRADE IT LAST %CHG
USO $20.76 2.37%
UNG $13.79 -0.79%
FSLR $56.81 0.05%
AAPL $125.80 -2.25%
FB $77.56 -1.59%

Markets

DOW 17,928.20 -142.20 -0.79%
S&P 500 2,089.46 -25.03 -1.18%
NASDAQ 4,939.3270 -77.6020 -1.55%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs