Tuesday, November 18, 2008

Sector Snap: Solar shares slide

From the AP via Forbes:

Shares in solar companies fell Tuesday with crude prices falling again and analysts suggesting European subsidies for alternative energy may be cut back.

Most analysts see a bright future for solar companies, but returns may be crimped both by the high costs of borrowing and less help from governments as the technology makes alternative energy more competitive.

"We believe very high subsidy levels in Europe are unsustainable & are likely to be reduced significantly over time," wrote Christopher Blansett, a J.P. Morgan analyst wrote in a note to clients. "As a result we believe 2008 reflects a peak in solar energy subsidization with risk of cuts going forward.">>>MORE