anant1a
New member
Make money out of Solar Stocks
By Markos Kaminis
I expect a combination of two factors should drive a value adjustment in solar stocks soon. The first factor seems to be taking hold now, while the second should arrive with the turn of the year. First, the price of energy, specifically crude oil, looks poised to move lower to me. I expect that short-term demand factors are finally pushing the price of the black gold lower. As this occurs, I expect to see a simultaneous and exaggerated impact to solar stocks. Secondly, there are huge profits in these shares that have been secure until recently, due to the turn of the tax year. As we trade in ’08, these stocks could lose a lot of ground fast given the right catalyst.
More than anything, what makes exotic energy sources viable alternatives on an economic basis is their competitive price-play with traditional sources. Obviously, as crude approached $100 and natural gas $8, the cost competitiveness of wind and solar energy improved. I think it’s clear that this is the fundamental reason solar stocks performed so well in 2007. Yes, believe it or not, that capitalistic sin of ours, profit seeking, is likely driving the run in these stocks and not environmental concerns.
By Markos Kaminis
I expect a combination of two factors should drive a value adjustment in solar stocks soon. The first factor seems to be taking hold now, while the second should arrive with the turn of the year. First, the price of energy, specifically crude oil, looks poised to move lower to me. I expect that short-term demand factors are finally pushing the price of the black gold lower. As this occurs, I expect to see a simultaneous and exaggerated impact to solar stocks. Secondly, there are huge profits in these shares that have been secure until recently, due to the turn of the tax year. As we trade in ’08, these stocks could lose a lot of ground fast given the right catalyst.
More than anything, what makes exotic energy sources viable alternatives on an economic basis is their competitive price-play with traditional sources. Obviously, as crude approached $100 and natural gas $8, the cost competitiveness of wind and solar energy improved. I think it’s clear that this is the fundamental reason solar stocks performed so well in 2007. Yes, believe it or not, that capitalistic sin of ours, profit seeking, is likely driving the run in these stocks and not environmental concerns.