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Editor's Note:
My colleague and managing editor of the Alternative Energy Speculator, Nick Hodge, recommended five solar stocks to his readers yesterday. By the end of the trading day, each stock was up, and four were up in double-digit territory.
Today, he's written a piece describing the current state of the solar market and how you can profit by getting in now on some beaten down solar stocks. His article is particularly timely, and I thought more than a few of you would find it interesting and beneficial.
Enjoy,
Luke
Over the past few months, and particularly over the past few days, solar stocks have been beaten down to previously unseen levels.
One look at the share prices of solar energy stalwarts is enough to leave anyone who's been paying attention absolutely awestruck.
And it's not that hard to figure out what's been going on.
Earlier this year, solar stocks began selling off along with the broader market as a result of Wall Street deregulation and greed that led to a mortgage mess, kicking off a credit crisis that has led to the collapse of numerous storied financial institutions.
All that has been drilled into our heads for months.
The solar sector was certainly not impervious, and fell victim to rampant selling, as did most sectors of the market.
Here's a six-month chart of some solar juggernauts:
Pay close attention to the widespread selling in October and again in November. For me, this is the most startling part of the graph because, no matter how you look at the numbers, there is no way these companies lost more than half their value in two months.
Sure, market conditions are bad. But sales forecasts haven't been slashed more than 50%. Neither have profit forecasts.
Some solar companies have moderately trimmed their outlook for late 2008 and early 2009, but not to the scope currently being reflected in the share price.
So what we have is a particularly acute oversold situation, and a few well-positioned companies are begging to be bought and held for major profits.
Here's why.
Solar Forecasts Remain Strong
Given the rosy growth forecasts for the future of the solar industry, the recent sell-off is both illogical and irrational.
Just consider the following raw data offered by Forbes in a recent feature article:
the crystalline silicon-based solar market will grow from a 3.5 gigawatt market today to a 13.8 gigawatt market in 2013, a growth of 294% in the next four years
the amourphous silicon market will grow from 550 MW today to 2.8 GW in 2013, a growth of 409% in the next four years
the cadmium telluride (CdTe) market will grow from 480 MW today to 2.4 GW in 2013, a growth of 400% in the next four years
the thin film market based on CIGS and CIS, copper indium gallium selenide and copper indium diselenide, respectively, is will grow from a 41.3 MW market today to 1.2 GW in 2013, a growth of 2,806% in the next four years
To be clear, each of the main four solar sectors is predicted to grow at least 294% over the next four years. The fastest growing sector, CIGS and CIS, will grow an astounding 2,806%.
Traditional energy sectors look like children's playthings when considering this type of growth.
Per the IEA's recent World Energy Outlook, oil demand will grow to 106 million bpd up from 85 million bpd this year.
That's a 25% increase over the next 22 years. Solar is offering no less than 294% and as much as 2,806% in the next FOUR!
Where do you want your money to be?
What's more, that 25% increase in oil demand won't even be able to be met with traditional black gold. We'll be well past the peak by then. So a portion of oil's future demand will have to met by renewables.
Even better, the IEA report also said that "Renewable energy. . . such as solar. . .will overtake [natural] gas to become the second largest source of electricity behind coal by 2015."
The situation couldn't be any more clear.
The time is now to invest—and invest heavily—in renewable energy technologies. They're certain to be the companies powering the globe for many decades to come.
Solar Companies' Stocks: Time to Buy
That's why I sent a special alert to the readers of my Alternative Energy Speculato yesterday, telling them I'd compiled a report on the five solar stocks that will not only survive these troubled times, but that will go on to provide bountiful returns.
This group of solid solar stocks has it all, including thin film solar manufacturers, raw materials providers, and silicon ingot and cell producers.
By the end of the day yesterday, each of the five stocks were up. Four were up in double-digit territory. And this is at a time when the market is as shaky as an old rope bridge and solar stocks are getting bashed left and right.
But that's exactly why I chose these stocks. I knew that given their already oversold state and the high growth estimates for the next couple of years, smart investors would have to start buying them.
You need to be buying them as well. Given the grim situation painted by the IEA's report and the forecast for some sectors of the solar industry to climb nearly 3,000% in the next four short years, there is simply too much upside not to be a part of it.
All you have to do is join the ranks of other investors who read the Alternative Energy Speculator.
When you do, you'll receive access to the detailed report, Five Solar Stocks for Turbulent Market Times. It contains everything you know to start profiting from these carefully selected and researched solar investments.
You'll also get access to numerous other reports about how to profit from other sectors of the alternative energy market.
And we'll ship you a copy of the book, Investing in Renewable Energy: Making Money on Green Chip Stocks, which I co-wrote with Jeff Siegel and Chris Nelder.
Don't miss out on another day of these solar profits.
Call it like you see it,
Nick
Subscribe toEconomic Releases for the week of Monday, November 17th, 2008:
Nov 17 - NY Empire State Index
Nov 18 - PPI
Nov 19 - Building Permits
Nov 19 - CPI
Nov 19 - Housing Starts
Nov 19 - FOMC Minutes
Nov 20 - Initial Claims
Nov 20 - Leading Indicators
Nov 20 - Philadelphia Fed
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