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JimVanMeerten (56.71)

Dark days ahead for solar energy



October 10, 2011 – Comments (5) | RELATED TICKERS: STPFQ


Solyndra has signaled the dark days ahead for the solar energy sectors and high flying Suntech Power Holdings (STP) is no exception.  The price is off 97.17% from its one time high and it's currently down 78.30% from its one year high.  The daily trading price on this graph provided by Barchart shows just how bad the daily trading data has been:

Barchart technical indicators:
1 - 64% overall Barchart technical sell signal

2 - Trend Spotter technical sell signal

3 - Below its 20, 50 and 100 day moving averages

4 - 78.30% off its one year high

5 - Relative Strength Index is 33.32% but getting stronger

6 - Barchart computes a technical support level at 1.98

7 - Recently traded at 2.31 with a 50 day moving average of 4.57

Summary: Venturing into solar energy investments at this point is not investing its pure speculation.  The industry is too dependent on government tax credits and subsidies instead of venture capital R&D seed money at the present time.  Solar power is not price competitive with petroleum, hydro-electric, vegetable oils or even wind power and may not be for some time to come.  Only speculators should consider looking for a dead cat bounce from the solar energy sector.

Jim Van Meerten is a Marketocracy Master

5 Comments – Post Your Own

#1) On October 10, 2011 at 1:43 PM, devoish (65.08) wrote:

I so totally disagree. Solar is here, oil is dependent upon subsidies too, possibly more so.

Best wishes,


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#2) On October 10, 2011 at 2:28 PM, motleyanimal (36.66) wrote:

From my perspective in California, solar energy is mostly a scam.

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#3) On October 10, 2011 at 3:26 PM, chk999 (99.96) wrote:

Steven, oil companies paid the following income tax in 2010:

XOM 25.5 billion

CVX 12.9 billion

COP  8.3 billion

CHK 1.1 billion

The oil industry is not subsidized.

FSLR 97 million

TSL 48 million 

Solyndra - nothing

The solar industry is subsidized by various schemes that knock stuff off of your income tax. 

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#4) On October 10, 2011 at 4:49 PM, davejh23 (< 20) wrote:

Large solar projects currently don't make sense financially, but the technology is advancing very rapidly.  Some in the industry are speculating that solar could be price competitive as early as 2015.  If the technology continues to advance at the current rate, we could see low-cost residential/commerical product offerings before large scale energy projects ever take off. 

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#5) On October 10, 2011 at 7:07 PM, chk999 (99.96) wrote:

Here is a fascinating article by a UK environmentalist saying that PV is a failure in German and is a failure in the UK. 

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