Wednesday, October 22, 2008

Slaughter On Solar Street. And Earnings Heads Up: Johnson Controls; MEMC Electronics (FSLR; JCI; WFR)

MEMC Electronics will be reporting after the close tomorrow, I'm not looking for great things. They had a hurricane evacuation this quarter that will ding them a bit (hey, it was a fire last quarter!) and I don't know if that is priced in, I mean seriously, on some of these stocks it looks like the Apocalypse is priced in. JCI also reports, I didn't catch the time.

The screen is a very deep red, YGE and JASO both down 17%+, ENER down 15% and STP and TSL down 10%.
An indication of how widespread the selling is, The solar ETF, TAN, is down 11%.

One interesting anomaly is First Solar which is showing impressive relative strength, down 2%. FSLR is reporting earnings Oct. 29 and is good for a trade on the expectation of a run-up into earnings. Last trade, $138.35.