Intel Creates a Solar Company Spin-Off
Ignore the bashers who say solar power is hype - they, much like the Federal Reserve and our government leaders still live in the 1970s/1980s. (
Jun 7: As Energy Costs Soar, US Looks to Solar) With or without government, pure economics is going to drag the United States of Subprime into the new era, right about the same time China jumps in full scale... (note of oil falls to $40 by Halloween this post will be deleted and I'll disavow any knowledge of solar) Granted, it would be healthier for us all if the government actually helped instead of hindered, but that's asking too much - you'll have to move to a socialist European country for such crazy ideas.
That said, as I've warned multiple times - while the trend is clear for the industry, ultimate winners and the marketplace holds many uncertainties (
Jan 3: The Long Term in Solar) I wrote
Let me preface this post by saying I am a long term bull on solar, and in fact was an 'early adopter' among the investor class, that is I was invested over a year ago in my personal account. So I am not a Johnnie Come lately to this area. With that said, I do have some serious concerns in the 'mid term' (1-4 years)... my thesis is like all mfg goods, especially now heavily based in China, we will have periods of time over the next decade where capacity does not match demand, and even if this holds for a 4-6 quarter period, serious price wars can develop. I outlined this theory in detail in November in (Interesting Survey from Chinese Solar Companies - Price Concerns Already an Issue) In fact Jeffries analyst even thinks this is going to start happening next year (More Concerns about Solar ASP Pricing). It is not a matter of if, it's just a matter of when ... but "when" is the key to investing in this space.
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