Sector Snap: Solar-Product Stocks Tumble
© 2007 The Associated Press
NEW YORK — Solar stocks were dim Monday after the industry's trade group posted an alert on its Web site Friday noting that Congress may leave renewable initiatives out of a long-awaited energy bill.
Although the U.S. accounts for less than 10 percent of the solar-products market, investors who had been anticipating solar incentives in the bill will show their disappointment, ThinkEquity Partners analyst Jonathan Hoopes said in a note Monday.
There was no confirmation that congressional leaders were ready to pass the bill without extending solar investment tax credits. The Solar Energy Industries Association directed supporters to call representatives and pledge their support for Solar Investment Tax Credits.
Hoopes and other analysts did not seem concerned that a lack of incentives in the bill would seriously impact demand or the industry's future.
"With oil treading near $100 per barrel, we fully expect Congress to figure out a way to work incentives (be they voluntary or compulsory) for renewable energy into legislation that will not be vetoed in the near term," Hoopes said.
Yingli Green Energy Holding Co. shares fell hardest, posting a decline of $3.94, or 11 percent, to $31.85 in morning trading. SunPower Corp. fell $11.56, or 9 percent, to $117.14 as First Solar Inc. dropped $16.69, or 8.1 percent, to $190.16.
Banc of America Securities analyst Eric Brown said JA Solar Holdings Co.'s "conservative" earnings guidance last week opened up an attractive buying opportunity.
"We would use the pullback in the stock to build positions," Brown said in a note Monday.
JA Solar shares fell $3.09, or 5.7 percent, to $51.42. |
