To: RetiredNow who wrote (376245 ) 4/4/2008 3:58:48 PM From: Road Walker Respond to of 1577883 UPDATE: Solar Stocks Rally; LDK Inks Deals, Subsidy Bill Rises 3:24 PM EDT April 4, 2008 (Updates legislative information starting in seventh paragraph, stock prices in second and third.) By Riva Richmond Of DOW JONES NEWSWIRES NEW YORK -(Dow Jones)- Solar-energy stocks extended a three-week rally on Friday as sentiment toward the volatile group continued to warm. The biggest mover was LDK Solar Co. (LDK) of Xinyu City, China, which was recently up 16.4% to $36.82, making it one of the day's top gainers on the New York Stock Exchange. The manufacturer of multicrystalline solar wafers said it lined up a "critical" four-year sourcing pact for 1,450 metric tons of silicon, a key material in short supply. The company also said it added Silcio S.A. Greek and Arise Corp. as customers. Also higher were First Solar Inc. (FSLR), up 9.4% at $275.15; SunPower Corp. (SPWR), up 9.3% at $89.60; Suntech Power Holdings Co. Ltd. (STP), up 7.7% at $49.29; Evergreen Solar Inc. (ESLR), up 7.1% at $10.69; and MEMC Electronic Materials Inc. (WFR), up 3.1% at $76.03. Many of the stocks have put up big gains since the recent rally began. LDK is up 75% since March 12, the day before it announced it had nearly sold out all of its solar wafer capacity for 2008 and 2009. First Solar is up 58% since March 10, and SunPower is up 64% since March 17. Optimism is being fueled by bullish estimates for solar demand. UBS said Friday it estimates 56% growth this year to 4.9 gigawatts - driven by the German, Spanish and U.S. markets. "Overall, we think solar industry profits will continue growing significantly in 2009," the firm said. "We characterize the solar market in 2008 as the 'Perfect Storm' - an environment that is seeing rising prices for all products, everything from modules, installation, and for polysilicon," wrote Thomas Weisel analyst Jeff Osborne in a note to clients published Thursday. The stocks may be getting an assist Friday from news of a potential break on the U.S. government subsidy front. Senators Maria Cantwell, D-Wash., and John Ensign, R-Nev., introduced a measure on Thursday that some market watchers hope will end an impasse on the extension of key solar-industry tax credits that help make solar energy more affordable for businesses and consumers in the U.S. The bipartisan bill, which would extend the 30% commercial tax credit by eight years and the residential credit by one year, is designated as a stimulus measure and, as such, does not include an offset to pay for the credit. Republican lawmakers and President Bush have opposed recent proposals that would fund the solar credit with penalties on oil and gas companies. In light of this maneuver, UBS analyst Stephen Chin said in a note Friday, "We believe this bill has a better chance of passing both the Senate and House and Bush versus prior attempts." However, other observers worry the House will balk at passing a bill that is not paid for. Speaker Nancy Pelosi, D-Calif., has rigorously enforced budget offsetting rules. Cowen analyst Ronan Wolfsdorf said another measure likely to emerge from the Senate Finance Committee next week will take a new stab at offsets and could have a better chance of becoming law. -Riva Richmond, Dow Jones Newswires; 201-938-5670; riva.richmond@dowjones.com (END) Dow Jones Newswires 04-04-08 1524ET Copyright (c) 2008 Dow Jones & Company, Inc.