So do I. I learned more about solar risks and about DD.
I'm all cash now but more inclined to buy back SPWR.Thanks for good info. Duc
Thanks to both dzellmer and doctran. Very interesting and productive discussion. Enjoy the weekend.
After reading dzellmer83's response and going to his sources it became clear that there are a number of tax laws and revisions to same that led this reader into a total state of confusion. He may very well be correct in stating that the expiration date is the end of 2016, not 2013. I have given up trying to figure it out. Do your own DD. The issue is very important. I am waiting until January to see what, if anything, hits the fan.
I am not intentionally misinforming but I may be short on homework. In my first post I quoted Googled sources that said the tax credit expires 12/31/13. Then it was stated that
the credit would be available for projects STARTED in 2013 (not completed in 2013.) Now you show more Googled articles that say the ITC has been extended to 2016. I followed your Google and see more conflicts over expiration dates. At this point I do not know what is real, but I did not make any of it up. Bottom line all the sources seem to contradict each other. I hope end of 2016 is the expiration date, not end of 2013. I am a true believer in solar and have never shorted anything in my life. Can you show a source that has the real answer?
Trade up, thanks for the correct. Walmart, Home Depot and others are installing solar projects that can't be completed in 2013. If they start them now in 2013 it appears they will qualify. People starting in 2014 would not get the tax credit. That is huge. It could put the brakes on solar sales, to the delight of the Fossils. You can bet that Fossil Stooges in Congress would block any further credits. The electrical power industry is faced with ever increasing costs as the cream peak hour business goes to wind and solar while they have to maintain the full plant to sustain their business. Watch them fill the pockets of the Stooges to prevent that.
Ignore this Game Changer at your peril! It explains the Solar plunge. The hedgies are giggling at your blindness.
US solar installations get a 30% tax credit. The most effective way for Fossils (and their Stooges in Congress)to kill Wind and Solar is to eliminate the PTC. "The American Recovery and Reinvestment Act of 2009 allows taxpayers eligible for the PTC to take the federal business energy tax credit instead of taking the PTC for new installations. The eligible technologies ... required ... eligible facilities to be placed in service by the end of 2013." This could explain why solar stocks have been tanking. Google "Federal Business Energy Investment Tax Credit (ITC)." Also, "Renewable Energy Tax Credit expire 12/13/2013."
Take a look at the 1-day graph for today. The high volume periods coincided with dropping PPS. It looks like HFT selling, not buying. We are over 3m shares by 1:30pm. Do you still think "someone is buying"?
Consider Warren Buffet's two rules. Rule #1: Never lose money. Rule #2: Never forget Rule #1. I rode LDK down, always holding, never selling. Now I go to cash and stand aside when the stock is going down. I sold everything a few weeks ago and saved $4,000. When it turns back up I will buy back in.
Actually, the entire solar sector is down. Maybe Cramer got the wrong memo. If so he may say "I hate SPWR" tomorrow. What a fraud!
he usually has a reason for his scams. This last scam, "I like SPWR" was followed
by a big down day and that is weird. Let's assume the hedgies said, "we've milked this short
enough, so tell our boy to hype it, run it up, so we can trash it again"... and it crashed.
Somebody blundered, in addition to Cramer.
What happens if the GOP manages to kill the 30% tax incentive effective 12/31/2013? The will do it because they don't care about anything except the money they paid by Koch Heads. Would that 30% cost increase cripple solar power in the US?
We should stop thinking Fundamentals drive stock prices. HFT, naked shorting and old-boy-network manipulation are in charge. The latest dump was engineered to allow hedgies to cover shorts before year-end. When SPWR had terrific earnings the stock tanked. -- it was not what the Old Boys wanted to see so they crashed the stock. They see it as a zero-sum game. For them to win we have to lose. Forget Fundamentals -- Reagan killed that quaint concept when he "deregulated", taking the cops off Wall Street.
There is a huge nuclear power plant sitting on an earthquake fault line just north of NYC. It is also
on a river flowing past the City. If that plant gets #$%$ed you can kiss off NYC, the economy and your 401K. The Japanese #$%$ will look small by comparison. David Letterman was going nuts over the plant until someone shut him up last year.
"... wake up checking the premarket." I feel it too. Am 100% cash now and will miss the action. My Spiderman Sense says stand aside and buy a really big dip. Don't ride it into the ground. Done that and it hurts.