Conergy Indicates More Pain Ahead For Solar

Just when you think the news in the solar industry can’t get any worse, the negative headlines continue to flow.  Today, several solar stocks were hit again as the big German solar company Conergy  indicated that selling prices will continue to fall (below production costs in many cases) as price wars heat up in the face of declining demand and further cuts in German subsidies.  These comments really don’t come as a surprise and aren’t anything new.  Solar companies have been cutting estimates and warning of steep losses for several weeks now.

The Guggenheim Solar ETF (TAN) finished off about 2% today and remains in a steady downtrend after reaching a multi month high back in early February.  Most solar stocks have fallen back into their bases and while they are getting oversold, it’s highly likely that some will need to retest all time lows in the coming weeks.  I just don’t see any catalysts that are going to lead to sustained runs over the next several months.  It’s probably best to put money to work elsewhere in the green energy space.   The LED stocks are increasingly compelling, but frankly I’m not a fan of being long stocks in general at these levels.  Nothing wrong with cash!



Leave a Reply

Your email address will not be published. Required fields are marked *