Solarworld AG, Vestas Wind Systems A/S and Q-Cells AG led declines among alternative energy stocks on concern that gains last year outpaced earnings prospects.
Solarworld and Q-Cells, Germany's second and third-largest solar companies, respectively, fell after Societe Generale SA advised investors to sell the stocks. Vestas, the world's biggest wind-turbine maker, paced a drop by wind-power shares.
Alternative energy stocks surged last year as oil prices reached records and demand for alternatives increased. Societe Generale said today that solar stocks may be ``overvalued'' because prices will fall as supplies increase. Manufacturers of other renewable energy equipment tracked solar shares lower.
``Renewables stocks surged as people jumped on the bandwagon, and now everyone is trying to get out without differentiating between good and not-so-good companies,'' said Pedro Real de Asua, who helps manage the equivalent of about $8 billion at Barclays Fondos in Madrid, including shares of wind- power companies Gamesa Corp. Technologica SA and Iberdrola SA.
``Investors are not looking at the fundamentals, they're just selling everything.''...MOREQCE.DE
The Bloomberg headline that caught my eye this morning was
Solarworld, Q-Cells Tumble After Rating Cut to `Sell'