Energy Business
Chinese Solar Goal Lifts Sector Stocks
January 9, 2013 2:45 pm
Last Updated: April 27, 2020 6:58 pm
Shares of Chinese Solar makers are soaring since the first of the year, led by LDK Solar Co. Ltd. (NYSE: LDK), which is up nearly 53%. That’s the same LDK Solar that has posted a net loss of at least $1 per ADS for the past year and a half.
Other solar stocks with big gains since January 2nd include Hanwha SolarOne Co. Ltd. (NASDAQ: HSOL), up almost 37%, Trina Solar Ltd. (NYSE: TSL), up more than 33%, Yingli Green Energy Holding Co. Ltd. (NYSE: YGE), up nearly 30%, JA Solar Holdings Co. Ltd. (NASDAQ: JASO), JinkoSolar Holding Co. Ltd. (NYSE: JKS) up more than 20%, and Suntech Power Holdings Co. Ltd. (NYSE: STP), up nearly 20%.
Even U.S.-based, but French-controlled, SunPower Corp. (NASDAQ: SPWR) is up 48%. First Solar Inc. (NASDAQ: FSLR) is up a modest 7% to lag far behind the field.
The low prices for the solar stocks make them a perfect target for traders looking for a fast and volatile play. Whether or not there is any fundamental reason for the shares to trade at less than a buck or at nearly $7 is irrelevant. LDK’s 52-week range is $0.71 to $6.92, and its trading at $2.22 today, up nearly 8% from yesterday.
LDK’s high is nearly 10x more than the low. No one can put a value on the stock with a range like that. Solar stocks are like slot machines: put in some money, pull the handle, and hold on.
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