Solar Tariff Does Not Change Fundamentals
Modern Energy Roundup - March 21, 2012
Written by Green Chip Stocks
Posted March 21, 2012 at 1:25PM
- 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.