First Solar (Nasdaq:FSLR), Suntech (NYSE:STP), Energy Conversion Devices (Nasdaq:ENER), and Evergreen Solar (Nasdaq:ESLR) do not impress Wedbush too much, as they analyze numerous companies in the solar sector, of which the above-mentioned are the worst in their view.
The honeymoon may be over for most in the solar segment, as subsidies are lowered or eliminated, and feed-in-tariff in 2010 and 2011 affect the margins of some companies, especially First Solar, which could get it hard by the changes.
Most companies that have proven sales are working hard to lower costs in the emerging solar environment, as the weak global conditions continue to put pressure on this high-cost energy sector.
It probably won't be that long into the future before the inevitable consolidation begins, as scale will be needed to drive down costs and price if the solar industry wants to survive in the new natural gas energy world, which has turned the energy sector on its head.
1 comment:
Your a bunch of jackasses that don't have a clue and are pushing a natural gas agenda simply becaue you are promoting investments in that arena.
First Solar margins were never going to stay at 50% in lieu of cheap silicon and low labor costs in China.
Solar slowdown was anticipated a couple years ago by Goldman Sachs and the consolidation still has not materialized.
Your company has been involved in fraudelent activity and has been fined by SEC. Your a bunch of idiots who don't have a clue about world adoption of solar and have been wrong for some time regarding the entire solar sector.
It doesn't take a genius to know why FSLR margins shrunk and why financially strapped companies like Evergreen and Energy Coversion Devices are not a good bet.
How many times are you guys going to downgrade the sector?
You have been wrong so often that it is now comical.
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