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I would normally take the time to dissect an article and break it down – but this story out of DigiTimes is as concise as they get. Bottom line, if you own solar stocks, be prepared for a massive shakeout in 2010 due – in large part – to increased supply from China, which added an additional 1GW of capacity.
As a result, “The solar industry is at a critical stage and 50% of existing solar manufacturers may not survive 2010, according to The Information Network.”
Further support for this crisis comes from Solar panel manufacturers that have reported loses just in the past few weeks include Energy Conversion Devices, JA Solar, LDK Solar, Q-Cells, ReneSola, Solar Power, and Yingli Green Energy Holding.
Regards,
Jonathan
I would say that LDK Solar and Yingli Green are the leaderss of the breed.
Granted, there will be short term ups and downs, the inevitable nature of equity investment. However, in the longrun, I think solar will flourish and these current levels will look ridiculously cheap. But lets allow hindsight to prove us right or wrong