Investors who held companies in the solar energy sector are having a difficult time this year. Solar energy companies reliant on sales in the U.S., Germany, and in Asia are seeing no respite from many issues plaguing the industry. The challenges in solar power are highlighted from Trina Solar’s (TSL) quarterly conference call:
- Increased competition in today’s PV commercial environment.
- Declining average selling price (“ASP”)
- Uncertainty in China
- Declining margins
Trina is going to continue to struggle. Trina competes with First Solar (FSLR) and SunPower (STP) indirectly. These companies are in different target markets, with First Solar receiving optimism from investors. First Solar shares are up over 110% from its low reached in June.
The industry will face continued pressure, so investors looking to watch these stocks should not expect much upside for these companies. Note the market capitalization of these companies.
1. LDK Solar (LDK, Earnings, Analysts, Financials): Engages in the design, development, manufacture, and marketing of photovoltaic (PV) products; and development of power plant projects. Market cap at $198.94M, most recent closing price at $1.49.
2. Trina Solar (TSL, Earnings, Analysts, Financials): Designs, develops, manufactures, and sells photovoltaic (PV) modules worldwide. Market cap at $362.65M, most recent closing price at $5.20.
3. Suntech Power Holdings (STP, Earnings, Analysts, Financials): Engages in the design, development, manufacture, and marketing of photovoltaic (PV) products. Market cap at $181.16M, most recent closing price at $1.0.
4. JA Solar Holdings (JASO, Earnings, Analysts, Financials): Engages in the design, development, manufacture, and sale of photovoltaic solar cells and solar products, which convert sunlight into electricity in the People’s Republic of China. Market cap at $218.42M, most recent closing price at $1.08.
5. SunPower Corporation (SPWR, Earnings, Analysts, Financials): A vertically integrated solar products and services company that designs, manufactures and delivers solar electric systems worldwide for residential, commercial and utility-scale power plant customers. Market cap at $425.27M, most recent closing price at $4.96.
6. Yingli Green Energy Holding Co. Ltd. (YGE, Earnings, Analysts, Financials): Engages in the design, development, manufacture, marketing, sale, and installation of photovoltaic (PV) products in the People’s Republic of China and internationally. Market cap at $328.82M, most recent closing price at $2.10.
First Solar stands out as the best-performing stock in the short-term. In its conference call, First Solar planned to increase supply, as competitors undergo bankruptcy. The company is being hurt by weakness in Europe. First Solar is responding by focusing on emerging markets.
7. First Solar, Inc. (FSLR, Earnings, Analysts, Financials): Manufactures and sells solar modules using a thin-film semiconductor technology. Market cap at $2.08B, most recent closing price at $23.93.
Written by Chris Lau.
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