Shares of LDK Solar and Energy Conversion Devices Look to Rebound as Solar Demand Stays Strong
January 26 2012 - 8:20AM
Marketwired
Solar stocks have been on an impressive run with the Guggenheim
Solar ETF, which consists of approximately 25 stocks selected based
on the relative importance of solar power within the Company's
business model, up roughly 19 percent in the month of January.
Aaron Chew, a Maxim Group LLC analyst in New York recently told
Bloomberg that China's plan to double capacity this year is helping
to drive demand for solar panels, and boost shares throughout the
industry. Five Star Equities examines the outlook for companies in
the solar industry and provides equity research on LDK Solar Co.
Inc. (NYSE: LDK) and Energy Conversion Devices Inc. (NASDAQ: ENER).
Access to the full company reports can be found at:
www.fivestarequities.com/LDK
www.fivestarequities.com/ENER
Despite weak stock performances by several alternative energy
firms, 2011 was a strong year for the renewable energy industry.
Investments in renewable energy rose five percent from 2010 to $260
billion. According to data from to Bloomberg New Energy Finance,
solar led all alternative energy investments, and for the first
time since 2008, the US took back its leading position over China.
Investments in solar surged 36 percent to $136.6 billion last
year.
Five Star Equities releases regular market updates on the solar
industry so investors can stay ahead of the crowd and make the best
investment decisions to maximize their returns. Take a few minutes
to register with us free at www.fivestarequities.com and get
exclusive access to our numerous stock reports and industry
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While solar stocks kicked off the year on the upswing, recent
announcements out of Germany took some wind out of the industry's
sails. Last week Germany, the largest market for panels, said it
will make quicker cuts to subsidized rates and phase out support
for the industry by 2017. As reported in Bloomberg, German
Environment Minister Norbert Roettgen said last week that he
planned to reduce feed-in tariffs providing above-market prices for
solar power every month instead of twice a year as he does now. He
said he's working to curb an "unacceptable" surge in installations
last year.
Meanwhile, Economy Minister Philipp Roesler said spiraling costs
linked to solar subsidies are a threat to the economy. Roettgen
indicated concern that the funds are benefiting Chinese companies.
"The increase in installations in the past few years has gone far
beyond what we had targeted in our legislation," Roettgen said.
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