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IBDvalueinvestin (98.32)

Going from Dirty COAL to Clean SOLAR



July 16, 2013 – Comments (2) | RELATED TICKERS: WLTGQ , FSLR , SPWR

My coal pick (WLT) has been my worst pick ever down over -90% on caps.

The trend in the last 12 months has been that the coal stocks eps estimates have been going down faster than a rock falls in water.

While the exact opposite has been true for two solar stocks eps estimates which are soaring, one has a 10 fold increase in the coming year (FSLR - SPWR)

One thing that is not shocking is that the Chinese finally have had enough of coughing their lungs out and are planning a massive 5 fold Solar Investment in China by 2015. 

Bloomberg reports:

China, the world’s biggest maker of by Coupon Companion Plugin">solar panels, plans to increase fivefold its installed solar capacity to more than 35 gigawatt by 2015 to support an industry faced with declining profits, slowing exports and a supply glut.

The nation will add 10 gigawatt of solar-power capacity annually over the next three years, according to a statement from the State Council posted on the central government’s website today.

The move will help reduce the industry’s reliance on exports and ease oversupply that contributed to a 20 percent plunge in the average by Coupon Companion Plugin">price of solar panels last year, according to data compiled by Bloomberg.

2 Comments – Post Your Own

#1) On July 17, 2013 at 11:10 AM, drgroup (67.99) wrote:

Wow!! so the Chinese have figured out how to keep the sun shining all the time and will produce better products for themselves compared to the garbage they sell us. I'm buying coal stocks...

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#2) On July 17, 2013 at 1:46 PM, awallejr (33.35) wrote:

Well met coal is still needed for steel, but I wouldn't give up on thermal coal just yet.  Once we start exporting nat gas I am willing to wager that nat gas prices will rise to come closer to world average prices.  Look what happened to WTI crude once the Cushing glut started hitting the East Coast, it went up and closed the gap with Brent dramatically.

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