The Solar Energy Market Has Bottomed
A Seeking Alpha article talks about the solar market which has been bubbling for some time now. But in 2008 the industry had died. The solar silicon market has had some shortage in the production capacity countries like Germany and also Spain. The solar companies also had trouble with stocks dropping, sometimes with even 90% from their highs.
There are also many investors that say the green market has hit a bottom. Right now there is no real prediction whether the next year things will improve and by how much. But it seems that the winter of the solar panels will disappear in the next year.
There are more than two dozen companies dealing with solar power that have surpassed the earning expectations and the sale analysis. One of the most important things, besides improving the sales, is the fact that manufacturers also report great developments like price stabilization, shrinking inventories, reaching the capacity, and also the increased guidance.
Even if in the middle of 2009 the numbers showed a downgrade of solar power, right now, at the end of the year, we are seeing a clear shift to upgrades. This can only be a good news. This year the performance of solar stocks has been a mixed bag. Many solar stocks are hitting their lows. The Chinese Solar Stocks index, was on tickerspy topping at No. 2 in the last month. But even with that, the industry has been struggling to keep it up with the 2009 S&P 500.
But we already know that indexes are a mixed bag. The low end is occupied by stocks like the Energy Conversion Devices, Inc. (ENER). At the other end we can see the Trina Solar (TSL) or the Canadian Solar Inc. (CSIQ). This only proves that better companies handle these things in a better way. It all depends on their strategy and approach. The recent developments have also confirmed that there has been a very strong development of the solar sector in the last few years, even if the crisis has tempered that down a little.
The sector continues to be turbulent and analysts say it will continue to grow, with ups and downs just like now.
