Friday, November 9, 2007

JA Solar Shares Fall and Commentary on the Solar Sector

From CNN Money:

JA Solar Holdings Co. shares fell Friday after the solar-cell maker reported a surge in third-quarter profit, amid a broader market sell-off, as a Goldman Sachs analyst expressed concern about its fourth-quarter margins.

JA Solar shares plunged $7.47, or 10.7 percent, to $62.09 in afternoon trading. However, its shares are still up more than 80 percent since the end of the second quarter. The broader market also declined, with the Dow Jones industrial average shedding more than 90 points and the Standard & Poor's 500 index falling more than 5 points....MORE

From Schaeffers Research:

In a post yesterday - Earnings from LDK Solar and JA Solar Holdings Follow First Solar's Report - it was questioned whether a strong earnings report from First Solar report had raised the bar for JA Solar. Based on this mornings reaction, it appears that is the case.

Despite posting what appears to be a solid report , the shares gapped lower at the open and are trading down more than 10%. However, I am not sure I would extrapolate this short-term reaction out to the long-term view.

In other words, while the stock may be down today, the longer-term uptrend is still in place and the company is in a sector that is outperforming. Yesterday's post featured the daily chart, and today's drop in bring the stock back to test that short-term congestion zone near 60. For a difference perspective, consider the weekly chart below that focuses on the link for chart.

Here are four opinions on solar from Seeking Alpha:
  • First Solar Will Lose Fuel Fast »
  • BAC Warns about Polysilicon Supply: Beware the Solar Bubble »
  • Solar Sector Stinks of Overvaluation: Selling Suntech Power »
  • Selling LDK and Leaving Solar Mania »