And Suddenly, Solar Back To Bonkers (FSLR, LDK, SPWRA, TAN, SOLR, STP)

The sudden strength in the stock market and the rise in the price of oil is suddenly making the key solar sector stocks rise.   Solar shares also appear to be benefiting from China’s support of a subsidy program. DigiTimes noted that while the government supports the development of solar energy, no time line for any subsidy has been give.  Unfortunately, DigiTimes.com website was not connecting, so no link can be offered.  We have seen reports on this throughout the week noting the possible “assistance” on huge solar projects in China, but this is taking shares of First Solar, Inc. (NASDAQ: FSLR), LDK Solar Co. (NYSE: LDK), SunPower Corporation (NASDAQ: SPWRA), Claymore/MAC Global Solar Energy (NYSE: TAN), GT Solar International, Inc. (NASDAQ: SOLR), and Suntech Power Holdings Co. Ltd. (NYSE: STP) are all rallying sharply.  These are just some of the screaming gainers in the sector, but you will see double-digit gains, sometimes huge double-digit gains, across the board:

First Solar, Inc. (NASDAQ: FSLR)  $155.38 (+$21.40)
Day’s Range: $135.65 to $158.49; 52wk Range: $85.28 to $317.00
Volume:    5,305,547; Avg Vol: 4.1 million

LDK Solar Co. (NYSE: LDK) $8.35  +$2.46; +41.77%)
Day’s Range: $6.20 to $8.47; 52wk-Range: $3.75 to $52.40
Volume:    8,962,559
Avg Vol: 2.2 million

SunPower Corporation (NASDAQ: SPWRA) $27.81 (+$3.77; +15.68%)
Day’s Range: $24.91 to $29.73; 52wk-Range: $18.50 to $107.00
Volume:    3,455,101; Avg Vol: 2.1 million

Claymore/MAC Global Solar Energy (NYSE: TAN) $7.36 (+$1.18; +19.09%)
Day’s Range: $6.25 to $7.56; 52wk-Range: $4.65 to $30.79
Volume:    1,097,490; Avg Vol: 333,459

GT Solar International, Inc. (NASDAQ: SOLR) $5.72 (+$0.84; +17.37%)
Day Range: $5.00 to $5.86; 52wk-Range: $0.88  to $14.45
Volume:    1,445,524; Avg Vol.: 751,000

Suntech Power Holdings Co. Ltd. (NYSE: STP) $11.69 (+$3.84, 48.92%)
Day Range: $8.25 to $11.99; 52wk-Range: $5.09 to $51.75
Volume:    15,707,293; Avg Vol: 2.9 million

What will end up being more amazing than just this move is whether or not it can hold without profit taking and short sellers betting against it.  If commodities keep rising, you will likely again see just how many alternative energy stocks are in fact essentially leveraged oil and gas stocks.

Jon C. Ogg
March 26, 2009