Has Suntech Power (STP) Signed A 500MW Chinese Solar Deal?

I’m throwing this out there and if anyone has additional information to report feel free to post in the comments below.  There was a report in the WSJ today that Suntech Power (STP) may soon sign a big 500 MW China deal.  Apparently, a report by a local China media outlet was widely circulated that the Qinghai province has signed a 500 MW deal with Suntech.

Suntech spokesman Steve Chadima told Dow Jones Newswires Tuesday that the high level project was supposed to be kept under wraps, but was leaked today.   He went on to say discussions were ongoing, so couldn’t provide specifics, but expects the project to be completed within a couple years. 

It’s a bit surprising that STP only moved 6% on the rumor today, but then again it’s nearly quadrupled off the lows in anticipation that the government would begin throwing quite a bit of money around at solar projects and this is just more confirmation of that. 

In addition, Hapoalim Securities analyst Gordon Johnson expressed caution about the potential Qinghai deal Tuesday, noting that the two parties still have to agree on key terms, including project financing and the overall size of the project.

"This is a very dangerous time to invest in the solar sector – the stocks are moving on rumor and speculation as opposed to fundamentals," Johnson said.

Adding to the confusion was an article on Yahoo and at JLM Pacific Epoch saying that the deal had already been signed on June 6th.

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