It isn't as overpriced as some other solars which are holding up a lot better. Not the first time it's been weaker than the group, either. Any logical opinions?
No bashers or "I told you so's", please.
Didn't put any STP puts on until recently, so got lucky that way...
I focus on several solar guys....like to spread it out, ya know. STP is by far the most overvalued of the Chinese guys in my opinion because everyone has this silly idea that they are a market leader of some sort, just becasue they are big. Or I should say they were the most overvalued before SOLF and CSIQ had their little runs. Also, for practical reasons...it's easy to short STP. They're all going the same place in the end, so really it's just about picking your favs...
Profit taking! Pure and simple. The grim economic outlook coupled with huge profits institutional investors made has triggered the selling.
Nothing has changed with the company or the solar industry. All thats happened is a huuuuuuuuuuge buying opportunity has been created!
Finally, someone with the CORRECT answer to this question! There is nothing that has changed with STP, with price target anywhere from 80 to 110, depending on who you listen to! Just like he said, correction, and lousy market conditions= sell-off. Maybe one more day, and then I believe we turn back around, and UP..UP..UP...STP's PE is now a VERY LOW 64!!!! WOW..SCREAMING BUY
The Guru answers your question. More Sellers Than Buyers.
Never fails. Margin calls coming fast and hard. Low $50s in my crystal ball. Send your magin clerk a nice letter. Maybe he will give you an extra day.
Here is one big reason --> Tremendously reduced solar tax credits in the latest bill.
The credit used to be 30%. Then 30% credit will be reduced to 10% starting end of 2008. Solar can't grow without subsidies or tax credits.
Bush says he will veto any bill with too big a solar tax credit.
Its simple...solars are WAY WAY overpriced and oil is falling like a rock. Down 10% from high. Also, tax credits ending at the end of this year in US and Germany and Spain cutting back on incentives. Solar is about to die again like it did before.
You're right. There is a lot of money on the sidelines that has to go somewhere. Alternative energy, including solar is a bright spot in an otherwise dismal investing environment. See my post on this board today concerning the Chinese.
They have no debt, huge saving and understand the need for cleaner alternative energy in the long run and are investing accordingly unlike their American counterparts who have trouble seeing beyond a quarter. The US is not the center of the economic universe anymore which is ultimately healthy. GLTA
Because the STP had so much gain. For anyone who is scared or someone who need cash, they logically sold STP first.
If you are investing for a longer term and not need cash urgently, you may want to add your position now, since this is a good chance to add before the P/E ratio improved this summer.