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Solar Power Stocks Take A Beaten

In the last week or so the solar power companies have been getting down graded from several different analysts. The reasons vary from one another, but the message is still the same… stay away from the sector. The alternative energy sector has made some good gains in recent months, but then again almost everything has made gains since the lows of March.
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The leaders in the sector have really taken a turn down from where they were just a few months ago. First Solar Inc. (FSLR:NASDAQ) was as low as $100 in March climbing nearly 100% to it recent high of over $200 in May and has really taken a beaten since then.
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That’s not the only solar companies that has fallen out of flavor with the analysts. Typically when the price of oil starts to rise, the alternative energy sector gets some headwinds because of the fact that it makes cost effective sense to invest in the solar and wind power stocks. The problem here seems to be that the competitiveness of the sector has gotten really tight causing companies to cut back on their own pricing to compete with others in their market. Each of these companies are trying to get a bigger market share and to do so, pricing and profit will be taking a back seat at the moment.
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Here at Beating The Stock Market, I’ve been very positive about the alternative energy sector and have made plenty of money in trading these stocks. When news like this comes out from several different sources, I tend to stay away from the sector. Too much negative views on a sector does not sit well for me and I will wait and see before I jump back on board with solar or wind power stocks.

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2 Responses to “Solar Power Stocks Take A Beaten”

  1. I agree. Alternative energy doesn’t seem to be that great but AMRC is doing OK for me over the past month. Not stellar, but OK. It’s a buy and hold for me.

  2. billy
    Twitter: billyakerman
    says:

    The green energy sector seems to have lost most of it’s luster over the last years or so, but it’s still a good stock play. AMRC has had a good run for the last month, but keep an eye out the moving averages. It seems to be a good stock for channel trading. Good luck and happy trading.

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