Solar Stocks Still on Fire but Getting Weaker.

I compared Solar Stocks a while back and since my bullish story, the entire basket I compared is up approximately 8.5%. Take out First Solar (FSLR) from the equation and the average gain for the basket turns slightly negative. Since that time, my attitude towards solar has mellowed somewhat. The technology is real, but expensive and some of these companies have ridiculous valuations. If it were not for government subsidies, they would not be making much money at all. Additionally, the stocks look tired. WFR and TSL have failed to breakout despite coming very close to their highs. I recommend caution on this sector and suggest you take some profits if you own any of these.

– Faisal Laljee
Full Disclosure: I do not own FSLR but my position can change anytime without notice.

Tags: First Solar, FSLR, MEMC Electronics, Solar, Trina Solar, TSL, WFR

This entry was posted on Thursday, July 26th, 2007 at 9:55 am and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed.