NEW YORK ( TheStreet) -- Solar stocks finally turned positive on Tuesday afternoon -- after several days of share-price bleeding -- with some of the big Chinese solar players ending Tuesday in positive territory.

Both Trina Solar ( TSL) and Yingli Green Energy ( YGE) ended Tuesday with gains -- though each of less than 1%.

Still, set against double digit percentage declines in share price on Thursday and Friday of last week, the modest gains on Tuesday could be a sign that investors believe the Chinese solar shares have taken enough of a beating following the news out of Germany that the world's biggest solar market might cut its solar feed-in tariffs to a greater extent than anticipated, and sooner than expected.

Some of the other Chinese companies were up to an even greater degree on Tuesday at the market close. LDK Solar ( LDK) was up more than 3%; ReneSola ( SOL) close to 3%; and SolarFun Power ( SOLF) and Canadian Solar ( CSIQ), among the previously hard hit Chinese solar stocks, were up 1.7% and 1.5% respectively on Tuesday.

The big dogs on Tuesday were JA Solar ( JASO) and China Sunergy ( CSUN), both down more than 3%. ( JA Solar received a downgrade to neutral today from Broadpoint Amtech.)

All of which raises the question: Is the bleeding in Chinese solar stocks over, and if so, is it over for the right reasons?

If the right reason would be visibility from Germany on the specifics of its cut to the feed-in tariffs, then the answer is no -- and investors are taking big risks heading back into solar on a short-term share price drop.

Reuters, it should be noted, quoted the German economy minister today -- as opposed to the previous anonymous sourcing -- giving his personal support for a 16%-17% cut in solar tariffs . However, the German economy minister stressed it was not the position of his government.

What's more, the German politician did not chime in on the all-important date for the cut in the solar feed-in tariffs. He also didn't comment on the idea for further cuts in solar feed-in tariffs, if certain gigawatt triggers are reached, which had also been originally reported as part of the deal by Reuters.

Market opportunists may have headed back into the solar sector on Tuesday, seeing the multi-day share decline in some Chinese solar favorites as an opportune entry point. What's more, long-term investors who had missed "previous boats" in solar, but remain bullish on the long-term solar story regardless of Germany's decision, could have viewed this most recent solar selloff as a good entry point as well.

The 'Sell first, ask questions later,' nose-dive in solar stocks that occurred last week is typical of momentum sectors, said an analyst who covers both solar and other alternative energy sectors. "It doesn't mean the stocks will go up instantaneously, the story really hasn't changed a bit, but some investors with a long-term view on solar may still see this as a time to get in," the analyst said.

Yingli and Trina may have recovered quicker than Suntech Power ( STP), which was still down on Tuesday -- though less than 1% -- due to its weaker balance sheet as compared to Trina and Yingli. Suntech's debt-to-total-assets ratio is above 40%. Both Trina and Yingli have debt at the level of 25% of total assets

One analyst who has been speaking with sources in Germany, said that a variety of investors -- for a variety of reasons -- may have decided to head back into solar on Tuesday, a marked contrast from the profit-taking that we have seen in recent days. However, there still is "absolutely no deal," the analyst said, adding, "there is still a lot of wood to chop in regards to the German solar subsidy program."

No deal, and no official word from the Germany government.

At least for one day, though, some bullish solar investors spoke up.

-- Reported by Eric Rosenbaum in New York.


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