By Jeff Siegel
Solar stocks are getting a thrashing today after Yingli Green
Energy (NYSE: YGE)
came clean about a possible bankruptcy. The stock tanked at the open and is still trading below $1.00 –
down from yesterday's closing price of $1.70.
Of course, the writing was on the wall with this one. Yingli's been struggling for a long time. And while I'm extremely
bullish on solar, I've kept a safe distance from Yingli, as well
as a lot of other China solar stocks. That being said, even the solid, revenue-generating companies not
operating out of China are in the red today, including SunPower
(NASDAQ: SPWR),
First Solar (NASDAQ: FSLR),
SunEdison (NYSE: SUNE)
and SolarCity (NASDAQ: SCTY).
Interestingly, I thought those particular stocks would get hit a
bit harder today, potentially opening up an opportunity to pick up
some cheap shares. That didn't happen, so those like me, who are
long on these four stocks, are feeling pretty confident right now. Still, I suspect we'll see plenty of anti-solar pieces over the
next few days. This is pretty much an obligatory response anytime
we see disruption in the solar space. And that's fine. At this
point, none of that matters.
The growth trajectory for solar has not budged with this recent
news out of the Yingli camp. The only thing that's changed is the
space has rid itself of one more laggard. And that's a good thing! Interestingly, while solar is down today, a number of our
renewable energy yieldcos are up. As of this writing, TransAlta Renewables (TSX: RNW)
is up about 3 percent, Pattern Energy Group (NASDAQ: PEGI)
is up just over 1 percent, and Hannon Armstrong (NASDAQ: HASI),
which is technically a REIT, is up just over one percent, as well.
Man, I love renewable energy yieldcos!
Don't sleep on renewable energy ...
http://www.altenergystocks.com/archives/2015/05/yingli_is_tanking_but_the_solar_indust ry_remains_vibrant.html