Solar Tariff Does Not Change Fundamentals
Modern Energy Roundup - March 21, 2012
By Jeff Siegel
Wednesday, March 21st, 2012
- Chinese solar stocks got a fat boost yesterday after it was announced that the U.S. would impose lower-than-expected import fees on solar panels produced in China. Even after a disappointing quarter and a 9 percent fall in share price in pre-market, JA Solar (NASDAQ:JASO) ended the day up 4.4%. The boost might stick around for a few days, but the tariff decision has not changed the fundamentals. We still maintain that the solar sector will remain unstable well into the second quarter.
For a more personal take on this whole thing (where you can blast me for being misguided or applaud me for pointing out the starry-eyed elephant in the room), you can read my thoughts on the issue here.
- In other solar news, Daqo New Energy (NYSE:DQ) announced Q4 and FY, 2011 this morning. To be honest, I'm tired of repeating the same bearish reports on this sector. But if you need a reminder as to why we're sitting on the fence with solar right now, you can check out Daqo's earnings here.
Daqo is down more than 10 percent in pre-market.
Editor's Note: From solar and wind to geothermal and biofuels, Green Chip readers want to know which renewable energy resource will take over where fossil fuels leave off. The answer is...all of the above!
There is no one single solution to today's energy crisis. However, the combination of all viable renewable energy resources, coupled with energy efficiency, conservation and smart grid development will not only lead us to energy independence and a cleaner, more sustainable energy infrastructure — but also to what will soon prove to be the greatest investment opportunity of the 21st Century.
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