Will SolarWorld (PINKSHEETS:SRWRF) be the Next Bankrupt Solar Company?
Modern Energy Roundup - August 13, 2012
The perpetual victim of the solar universe decided to huff and puff this morning after cutting its outlook for 2012. In a press release, we read that SolarWorld slashed its outlook for the current year, accusing Chinese peers of unfairly undercutting the prices of its components which pushed the company to a surprise first-half operating loss.
That was a surprise?
Do these guys even follow the market in which they operate?
If you follow the solar space, you know that it was SolarWorld that initially filed a complaint with the US Department of Commerce, claiming that China is unfairly subsidizing its solar industry in an effort to control the global market.
Never mind that fact that SolarWorld has received hundreds of millions of dollars in government support from Germany, Italy, Qatar and the United States.
Bottom line: the Chinese are kicking everyone's ass, and instead of figuring out how to compete with China's heavily subsidized solar market, it's claimed victim status and has essentially launched a trade war that began with a 31% tax on its competitors.
This is going to come right out of the paychecks of American solar workers.
Meanwhile, as we're witnessing now, SolarWorld's complaint isn't going to save this struggling company. What once traded for more than $33 a share on the pink sheets is now going for about $1.50. I wouldn't touch this dog if you paid me.