In "A Bifurcated Market in Solar Stocks (ENER; FSLR; LDK; SPWRA; TSL; YGE)" we pointed out the difference in today's price moves in the American vs. Chinese solar stocks.
The American companies, which had been in the red are now modestly green while the Chinese, which had been modestly green are now up double digit percentages. Here's one factor weighing on the American group, from Tech Trader Daily:
First Solar (FSLR) may not make its solar cells from polysilicon, but the company is nonetheless feeling the heat from the rapidly crumbling prices for silicon-based solar products.
J.P. Morgan analyst Christopher Blansett this morning slashed his estimates on the company for precisely that reason. “We believe the Street is underestimating the scope of the problems that the solar energy industry and First Solar are facing this year with significantly higher commercial lending rates and lower overall global subsidization driving down demand,” he writes. “We are now thinking of the solar energy sector in terms of a growth cyclical perspective and believe it will take 2-3 quarters to burn off excess inventory.”>>>MORE