Tags: solar | stocks | red | hit

Solar Stocks Seeing Red as Industry Loses Shine for Investors

By Peter Moses   |   Friday, 16 Nov 2012 01:28 PM

Solar power company stocks took a big hit this week, more bad news for an industry not just battered in their financials but also in the world of politics as well, Forbes reported.

Suntech Power Holding saw its stock drop 71 percent since last Friday, with its stock now worth a paltry $0.77 per share.

Trina Solar Ltd. lost 39 percent of its value during the same period, dropping to $2.28 per share.

Editor's Note: How You Lost $85,000 During the Last Decade. See the Numbers.

“Our third quarter sales were adversely impacted by a continued supply-demand imbalance in the global [photovoltaic] industry, high inventory levels and irrational pricing practices by some competitors in the market,” Trina CEO Jifan Gao said in a statement updating the firm’s third-quarter guidance.

Reasons for the continued market losses in the sector include falling prices, weak demand and disappearing government subsidies, according to Forbes.

The Obama administration has been a big believer in the industry and has subsidized many firms, some of which have filed for bankruptcy.

Solyndra and Evergreen Solar were two of the most spectacular failures fueled by money and subsidies by the Obama administration, but other bankruptcies in the industry continue to pile up. This year Q-Cells, the world’s largest solar cell manufacturer in 2008, and power plant developer Solar Trust of America went belly up, Gigaom.com reported.

One new use for solar power seems to be taking shape in the aftermath of Superstorm Sandy: solar-powered generators, according to Forbes.

“Solar generators should be in the emergency preparedness plan of every community,” Chris Collins, executive director of Solar One, told Forbes. “After a storm, people need safe places to go.”

In fact, Collins’ own building on the East River “lost everything [during the storm]. But we set up our solar panels the day after Sandy and we had lights and power.”

Editor's Note: How You Lost $85,000 During the Last Decade. See the Numbers.

© 2015 Newsmax Finance. All rights reserved.

1Like our page

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

© Newsmax Media, Inc.
All Rights Reserved