Energy stocks were generally higher yesterday as shares reacted positively to China's latest stimulus package and the expectations for more. Coal stocks did particularly well, but solar stocks also moved a little higher. The move continues today.
First Solar Inc. (NASDAQ: FSLR) announced this morning that it had signed a power-purchase agreement with Pacific Gas & Electric Co. (NYSE: PCG) for 72 megawatts of electricity from two California plants. Project construction is expected to start next year. That's really a pretty paltry amount, but First Solar shares are up more than 5% on the news.
Korean-owned but China-based Hanwha SolarOne Co. Ltd. (NASDAQ: HSOL) reported a loss of $0.50 per U.S. ADS this morning, much worse than the expected loss of $0.31, and revenues missed estimates as well. Normally that would crush a solar maker's shares, but Hanwha is down only 2.4%. Investors seem to believe that Hanwha's acquisition of Germany's bankrupt Q-cells will allow Hanwha to avoid the 31% tariffs slapped on Chinese solar makers because the German company owns manufacturing facilities in Germany and Malaysia. That may happen, and Hanwha, a major Korean conglomerate, has the cash to wait. We'll see.
Other solar makers, with the exception of SunPower Corp. (NASDAQ: SPWR) are also getting a boost today. SunPower signed a power-purchase agreement for 100 megawatts last week.
First Solar is up 5.2% at $21.87 in a 52-week range of $11.43 to $93.64.
Hanwha Solarone is down 2.8% at $1.03 in a 52-week range of $0.81 to $3.33.
SunPower is down 0.4% at $4.71 in a 52-week range of $3.71 to $9.54.
LDK Solar Co. Ltd. (NYSE: LDK) is up 2.4% at $1.26 in a 52-week range of $1.20 to $6.92.
Suntech Power Holdings Co. Ltd. (NYSE: STP) is up 8.4% at $0.805 in a 52-week range of $0.71 to $4.40.
Trina Solar Ltd. (NYSE: TSL) is up 2.4% at $4.20 in a 52-week range of $3.95 to $ 12.19.
Filed under: 24/7 Wall St. Wire, Alternative Energy, Green Biz Tagged: FSLR, HSOL, LDK, SPWR, STP, TSL