The bear market apparently didn't kill off the last speculator: They were out in force today in solar stocks after China offered new subsidies to promote solar power.
From Bloomberg News:Chinese solar stocks rose the most ever in New York trading after China
moncler jassen te koop, the world’s biggest greenhouse-gas emitter, introduced a subsidy to promote the use of alternative energy.
The government will offer this year 20 yuan ($2.93) per watt for solar projects with generating capacity of at least 50 kilowatts, the Ministry of Finance said in a statement posted today on its website.
“We believe meaningful upside potential exists if government support for domestic solar sector continues
moncler jacken schwarz,” Barclays PLC analyst Vishal Shah wrote in a note to clients. Among the day's big gainers: Suntech Power Holdings
www.jackenmoncleroutlet.net, China's largest solar-components maker
www.nederlandmoncler.com, soared $3.44
Moncler jacken, or 44%,to $11.29; LDK Solar, which manufactures solar wafers, jumped $1.87, or 32%, to $7.76; Yingli Green Energy, which makes photovoltaic cells, surged $1.86, or 45%
moncler jacken günstig, to $6.01.
U.S. solar companies also got a lift on the news. First Solar jumped $16.41
Moncler daunenjacke, or 12.2%, to $150.39.
Besides China's new incentives, growing optimism about the Obama administration's plans to boost renewable energy projects also may be pulling investors back to solar stocks.
Chinese solar stocks had been one of the market's biggest bubbles in 2007, before collapsing last year. Suntech had reached a high of $88.35 at the end of 2007. Yingli's record high was $41.40, also at the end of 2007.
But as manias go, that one at least had a fundamental underpinning: Suntech
www.monclerwesteoutlet.com, LDK, Yingli, First Solar and many other solar players have been making real money for the last two years as sales have boomed.
Suntech is expected to earn 60 cents a share this year
Moncler te koop, the median estimate of 25 analysts who cover the company. That gives the stock an estimated price-to-earnings ratio of 19. First Solar's estimated 2009 P/E is 23. If these still qualify as long-term growth stocks, the P/Es aren't outlandish.
The Motley Fool has some details on the Chinese subsidy announcement, and some cautionary notes. Click here.
-- Tom Petruno