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Here's a relative strength chart between TAN and KWT. The trend is currently in KWT's corner.
Top 10 TAN holdings...
http://finance.yahoo.com/q/cq?d=v1&s=ENER+FSLR+JASO+LDK+WFR+QCE.BE+REC.OL+SWV.BE+SPWRA+STP
TAN was mentioned first thing on Cramer tonight...
Winners
For most of the year solar ETFs rose and fell along with the price of oil. But that hasn't been the case lately. First Solar (FSLR: 161.91, +18.21, +12.67%), a bellwether of the industry and a key component of two of the most popular solar ETFs, announced last week its third-quarter net income jumped to $99.3 million on $349 million in revenue, up from $46 million in profits on $159 million in sales during the same time period last year. The company also announced some key deals.
Investors happily greeted those results. Indeed, Market Vectors Solar Energy (KWT: 18.39, +1.92, +11.65%) increased 10.5%. (The fund tracks an index that has a 13% weighting in First Solar.) The Claymore/MAC Global Solar Energy fund (TAN: 11.99, +1.59, +15.28%) gained 13.9%. (First Solar constitutes 9.6% of its underlying index.)
TAN up nicely today, still holding my NOV $15 calls...
As of now, KWT outperforming TAN. See chart on referenced post.
This news kind of went unoticed with the bailout...
Friday, October 3, 2008
Congress passes solar tax creditEast Bay Business Times - by Tony C. Yang
California solar power companies are breathing a sigh of relief as Congress on Friday passed a solar tax credit that could provide billions in future funding.
The renewable-energy Incentive Tax Credit bill was attached to the larger $700 billion Economic Growth and Financial Stabilization Act of 2008, which passed on a 263-171 bipartisan vote and was signed by President George Bush a few hours later.
The tax credit portion of the law beefs up and extends an expiring tax credit for renewable-energy projects. It extends a wind power credit for one year, extends geothermal and biomass energy credits for two years, and provides incentives to the solar industry -- such as the removal of a $2,000 credit cap for residential solar installations -- for eight years, until 2016.
Other provisions include $800 million for clean-energy bonds. The total package is worth $17 billion over eight years.
Los Gatos-based solar installer Akeena Solar Inc. described the new law as “good for the country.” Now customers can see a full payback of their solar investment in half the time, said Akeena chief executive Barry Cinnamon.
“We applaud the leadership in Congress for passing this critical solar tax credit legislation,” said Robert Fishman, president, CEO and chairman of Palo Alto-based solar thermal company Ausra Inc. “Deploying solar projects that can provide power on the scale of a public utility requires a stable investment environment.”
Meanwhile, executives at solar companies believe their pressure helped it pass.
Jose Radzinsky, CEO of San Jose-based Renewable Power Solutions Inc., had been writing furiously to members of Congress urging them to approve the energy credits. He spent a week in Washington, D.C., four months ago to meet with legislators and promote the tax credit. He said he also wrote letters to “complain heavily” about the issue.
Greg Blue, Hayward-based OptiSolar Inc.'s vice president for government affairs, said before the vote that OptiSolar wasn't affected in the short term by the ITC but that the solar sector would add 440,000 jobs over the next eight years if the incentive package became law. OptiSolar is building a plant in Sacramento County at McClellan Business Park that it says will ultimately employ 1,000 people.
The Solar Energy Industries Association said it was “major step” toward energy independence which could provide up to 39,000 jobs and $8 billion in economic investment in 2009.
Frank Wolak, an economics professor at Stanford University and whi is affiliated with its Program on Energy and Sustainable Development, said the tax credits are basically a subsidy.
“It makes it economically affordable to invest in solar technology,” he said. “The primary goal is to stimulate the use of it.”
But such subsidies are “always beholden to politics,” Wolak said.
Agree if your supposition pans out.
I bought some TAN Calls, It's pretty obvious Obama is going to win which should trigger a run in alternative energy!
ya. SOLARS got murdered!!!!! i smell buying opps soon.
so much for support at 22...
TAN looks like a buy down here. safe bet imo.
Seems like alot of support around 22.
chart starting to look sunny...
TAN trading 25.00 after hours!!!!
nice pop in TAN today--sector starting the basing process...
Tuesday's surging oil price rippled throughout various segment's of the economy.
Unsurprisingly, big oil companies like Chevron (nyse: CVX - news - people ), Royal Dutch Shell (nyse: RDSA - news - people ), ConocoPhillips (nyse: COP - news - people ), and Petroleo Brasileiro (nyse: PBR - news - people ) gained 1.2%, 0.8%, 2.0%, 2.6%, in late-afternoon trading, respectively. And predictably oil services and equipment companies like Halliburton (nyse: HAL - news - people ), Schlumberger (nyse: SLB - news - people ), Weatherford International (nyse: WFT - news - people ), and Willbros Group (nyse: WG - news - people ) jumped 2.3% 2.3%, 3.1%, and 3.4%, respectively.
The gains though were not limited to the oil industry or rational behavior. Even though oil accounts for 2% of electricity production in this country--a negligible amount--the high-flying solar sector rallied on the back of black-gold's gains.
"It's more psychological than operational as the price of oil has no direct bearing on the price of electricity," said Michael Carboy of Signal Hill Group. "What happens though is rising oil prices are equated to rising energy prices and solar gets a good tailwind as a result."
That leap of reason gave solar stocks an even greater bounce than their oil counterparts as companies like SunPower (nasdaq: SPWR - news - people ), First Solar (nyse: FSLR - news - people ), Evergreen Solar (nasdaq: ESLR - news - people ), Trina Solar (nyse: TSL - news - people ), and Canadian Solar (nasdaq: CSIQ - news - people ), gained 6.1%, 4.0%, 7.8%, 7.1%, and 17.2%, respectively.
If investors can take anything away from the discrepancy, it’s the immaturity of the solar sector. For all the lofty predictions about its future, the stocks are still a beta play on the market.
JA Solar Holdings surfs atop the high-demand wave.
On Wednesday the Chinese solar-cell maker reported earnings that rose 46.7% to $13.5 million, or 9 cents per share, from $9.2 million, or 11 cents per share, a year earlier. Sales climbed to $144.2 million from $47.9 million. Analysts polled by Thomson Financial on average had expected a earnings of 9 cents per share on sales of $117.8 million. Shares of JA Solar (nasdaq: JASO - news - people ) popped 3.2%, or 47 cents, to $15.05, in afternoon trading.
"The company's results were obviously a blowout," said ThinkEquity Partners analyst Budong Peter Peng, "they're producing at 110% of capacity which is very unusual among their competitors. It's not an easy thing to do and they're pulling it off, and they're doing beyond what everyone was expecting."
JA Solar expects sales of $990 million to $1.1 billion this year. The range jumps in front of analyst expectations of $520.4 million to $936.4 million, according to a Thomson Financial survey. It also said it has sufficient silicon supplies in place to cover a planned production ramp-up, and plans to open a research laboratory in California's Silicon Valley.
JA Solar shipped cells with over 50 megawatts worth of annual generating capacity last quarter, up from 13.7 megawatts during the fourth quarter of 2006. A one-megawatt plant running continuously at full capacity can power 778 households each year, according to the U.S. Department of Energy.
Though cost per watt, excluding silicon wafers, fell to 19 cents from 22.8 cents, overall cost of revenue more than tripled. Prices for silicon, the key component of solar-power products, have climbed sharply as demand from the solar and semiconductor industries outpaced production capacity. In addition, the dollar's declining value against the Chinese renminbi resulted in exchange losses of $7.9 million during the quarter. As a result, JA Solar's gross margins fell to 21.2% from 23.9% a year earlier.
Chief Executive and founder Samuel Yang said the past year provided extraordinary business growth for the company. JA Solar's strong results come weeks after two other China-based solar companies, Canadian Solar (nasdaq: CSIQ - news - people ) and Trina Solar (nyse: TSL - news - people ), posted strong quarterly results. (See: "Canadian Solar Is Growing" and "The Sun Shines On Trina") In late-February though Suntech Power Holdings (nyse: STP - news - people ) disappointed Wall Street with weaker-than-expected results. (See: "Suntech Eclipsed")
Elsewhere in the solar sector, Canadian Solar jumped 3.4%, ReneSola (nyse: SOL - news - people ) increased 0.2%, and Suntech Power grew 4.5%, although LDK Solar (nyse: LDK - news - people ) and Trina Solar dropped 4.8%, and 3.1%, respectively. State-side First Solar (nasdaq: FSLR - news - people ) and SunPower (nasdaq: SPWR - news - people ), rose 2.3 % and 6.5%, respectively. Evergreen Solar (nasdaq: ESLR - news - people )shares were down 0.1%.
Fund Holdings as of 4/18/08
Name Weighting
FIRST SOLAR INC 8.72 %
RENEWABLE ENERGY CORP AS 7.31 %
Q-CELLS AG 6.48 %
SUNTECH POWER HOLDINGS ADR 6.20 %
JA SOLAR HOLDINGS CO LTD 5.53 %
SOLARWORLD AG 5.47 %
YINGLI GREEN ENERGY - ADR 4.89 %
SUNPOWER CORP-A 4.81 %
MEMC ELECTRONIC MATERIALS INC 4.75 %
LDK SOLAR CO LTD-ADR 4.71 %
SOLARIA ENERGIA Y MEDIO AMBIENTE SA 3.71 %
CENTROTHERM PHOTOVOLTAICS 3.40 %
ENERGY CONVERSION DEVICES 3.23 %
TRINA SOLAR LTD-SPON ADR 3.22 %
ERSOL SOLAR ENERGY AG 3.08 %
SOLARFUN POWER HOLDINGS CO 3.07 %
EVERGREEN SOLAR INC 2.92 %
CANADIAN SOLAR INC 2.92 %
SOLON AG FUER SOLARTECHNIK 2.81 %
MEYER BURGER TECHNOLOGY AG 2.45 %
CONERGY AG 2.31 %
ROTH & RAU AG 2.25 %
MANZ AUTOMATION AG 2.06 %
CHINA SUNERGY CO LTD 2.02 %
EMCORE CORP 1.69 %
The solars should do well this summer IMOP... Good ETF if you are confused about individual picks. Nice call here.
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NYSE Euronext (NYX) today announced the launch of the first global solar energy index ETF the Claymore/MAC Global Solar Energy Index ETF on NYSE Arca. As an industry leader in ETF and ETN listings and trading, exchange traded products listed on NYSE Arca represent 56% of ETF and ETN assets under management in the U.S., nearly $609 billion, the most of any exchange.
The Claymore/MAC Global Solar Energy Index ETF, which trades under the ticker symbol TAN, is designed to track approximately 25 companies within the following business segments of the solar power industry: equipment producers, suppliers of materials or services, installation, integration or finance, and companies that specialize in selling electricity.
The following NYSE-listed companies are included in the Claymore/MAC Global Solar Energy Index: MEMC Electronic Materials Inc. (NYSE: WFR), Suntech Power Holdings Co Ltd (NYSE:STP), LDK Solar Co Ltd (NYSE: LDK), Yingli Green Energy (NYSE:YGE), Trina Solar Ltd. (NYSE:TSL).,
As the first fully electronic platform to utilize designated liquidity providers, NYSE Arca sets the national best bid and offer nearly 85% of the time, leading all U.S. exchanges. NYSE Arca remains an established leader in the ETF and ETN market place offering investors some of the industry’s fastest and most innovative trading tools to access liquidity. Including today’s listings, NYSE Arca has 252 primary ETF and 43 ETN listings and trades all other eligible ETFs on a UTP basis. In 2007, NYSE Arca added 122 new ETFs and ETNs to its roster of primary listings, including a record 101 IPOs. For 2007, NYSE Arca was the primary listing exchange of choice with a total of 261 ETFs and ETNs listed.
TOP 10 HOLDINGS ( 55.27% OF TOTAL ASSETS) |
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