I find myself in the odd position of taking the long side of FSLR and SPWRA even though I don't have much love for either of them.*
Analyst Comments – Auriga’s Mark Bachman commented this morning on the solar sector on the heels of Intersolar Europe 2010, stating that “industry fundamentals remain strong and our conviction in recommending certain stocks within the sector has been strengthened following our meetings in Munich last week.”
Key Takeaways:· Demand remains robust not only in Germany, but also in the surroundingcountries with both Italy and the Czech Republic most notable.· Supply is constrained at the top-tier module manufacturers through 2010, and even 2nd and 3rd tier suppliers are finding homes for their modules. The driving force behind the demand is that project returns (IRRs) remain attractive, and with no change in the availability of debt financing, investors continue to have a strong appetite for these low-risk PV investments.· Module pricing remains stable as both the developers and investors are sharing the burden of the mid-year subsidy cuts in Germany.· The installers are driving down balance-of-systems (BOS) costs, while investors are accepting lower returns while still garnering IRRs of roughly 10% or more in 2010....MORE
Since we started touting Sunpower on May 26 the Stock is up 31%. Most of the links can be found in:
Hapoalim Cuts First Solar Target to $65 on Cadmium Telluride Risk; It Won't Matter and Probably Sets an Intermediate Low (FSLR)
with the stock at $105.35 pre-market.
It did indeed set a low that day, trading as low as $100.19.
These calls were as much a bet on euro strength as anything.
For more, use the Search Blog box, FSLR or SPWRA.