Despite these high valuations, I still believe that there are opportunities to make money in this sector due to the lack of consensus on when the polysilicon shortage will end. Let's say that solar valuations are justified at current levels. If that is the case, short sellers are in for some pain. This article is about how you can turn the short seller's pain into profit.
Solar Credit Crunch: Buy When There's Blood on the Streets (Part 1) Written By: Eben Esterhuizen 2007-08-22 03:02:00 It finally happened! On Friday the Fed cut its discount rate - what it charges banks for direct loans - by 0.5% to 5.75%, in an effort to increase liquidity in longer-term loans and bonds. But Bernanke-bashing is alive and well, and there is a choir of analysts saying that Bernanke has gone soft on inflation. The Fed walks a fine line between acknowledging a problem and offering relief without saying anything that might spook investors further.
Solar Credit Crunch: Buy When There's Blood on the Streets (Part 2) Written By: Eben Esterhuizen 2007-08-24 00:39:05 Shopping for bargains in the solar sector? As we pointed out in Part 1, some selling may have been overdone, creating attractive entry points for solar investors. I wish I can sit here and write about why you should buy TrinaSolar (TSL - Last trade $41.77) after they surprised everyone with their recent earnings report. I want to tell you how FirstSolar (FSLR - Last trade $94.20) continues to amaze me. I want to tell you to buy solar stocks that are fundamentally strong. I want to reassure you that everything is going to be ok, and that the past month has just been another "necessary correction" in a bull market that will continue to defy gravity for years to come. But I can't.
