Monday, June 02, 2008

Solar may be under attack again today

Solar may be under attack again today... Bloomberg reporting First Solar (NASDAQ FSLR) 2nd man warned sales could slow... Chinese poly wafer producers LDK and SOL downgraded. It is noteworthy that Morgan Stanley underwrote LDK's convert offering and upgraded LDK at the same time. MS seems to come clean finally that LDK is not a buy.

Time to short FSLR too... I've noticed that Ahearn sold nearly 1/2 of his position since it started to trade in the high $200s. How could that not be bearish for the stock when the firm's founder dumps his shares like thin film is going out of fashion.

I believe smart money will rotate out of solar/wind into healthcare (down about 50% YTD).

Btw, oil is down as I suspected... Time to short oil big time... Net long positions fell by nearly 80% since june 2007... hedge funds are reportedly pulling out their investment as the gov't is getting ready to crack down on speculators.

Notablecalls: These comments coming from a close Solar watcher

1 comment:

cramermutebutton said...

couldn't agree more. Been a great run.. but you can't fight the Gov't in their attack against the commodity speculators. Of course, much of the (oil/ag) inflation we have is due to helicopter ben and this assinine ethanol legislation. The irony of course (as far as enegy goes).. Is that legislating LOWER oil prices will effecively SPEED up the peak oil date, and push off economically viable alt energy sorces far into the future. Most likely we should be buying crude futures for 2016 delivery... because this is going to make the problem MUCH worse into the future