From Schaeffer's Research:
The solar sector is receiving quite a bit of attention this morning, as LDK Solar Co. Ltd. (LDK) and JA Solar Holdings Co. Ltd. (JASO) both released their quarterly earnings reports ahead of the open. Furthermore, fellow solar concern SunPower Corp. (SPWRA) is slated to release its quarterly report after the close of trading tonight. While all three stocks have received an influx of buying support his morning, it hasn't been enough to lift the Claymore/MAC Global Solar Energy Index Fund (TAN), which has slipped nearly 3% so far this morning.
The solar sector is receiving quite a bit of attention this morning, as LDK Solar Co. Ltd. (LDK) and JA Solar Holdings Co. Ltd. (JASO) both released their quarterly earnings reports ahead of the open. Furthermore, fellow solar concern SunPower Corp. (SPWRA) is slated to release its quarterly report after the close of trading tonight. While all three stocks have received an influx of buying support his morning, it hasn't been enough to lift the Claymore/MAC Global Solar Energy Index Fund (TAN), which has slipped nearly 3% so far this morning.
Drilling down on this trio, LDK Solar (LDK) has vaulted nearly 1% higher so far this morning, after the company topped analysts' first-quarter earnings expectations by 4 cents per share. However, while buying activity is up for the shares, LDK has been unable to topple its declining 10-day moving average in early trading. On the sentiment front, short interest is substantial on LDK, accounting for more than 16% of the stock's total float. However, with technical factors working against the shares, investors will be in no rush to buy back their bearish bets.
Elsewhere, shares of JA Solar (JASO) have rallied more 1.2% so far this morning, after the company's first-quarter profit of 24 cents per share blew past Wall Street's expectations for earnings of 17 cents per share. Furthermore, JASO also raised its outlook on strong demand for solar electricity generating equipment. The stock is currently holding firm above support near $6 per share, while the $7 region looms large as long-term resistance. While analysts have been mute this morning, there is plenty of room for potential upgrades. Zacks reports that 10 of the 17 brokerage firms following JASO rate the shares a "hold" or worse....MORE
