Solar Stock Review and Future Prospects
The Green Market Oracle
The solar segment has garnered considerable interest. To help investorschart solar’s growth The Green Market selected 5 solar stocks (CSIQ ESLR FSLR SPWRA STP) and followed their progress throughout 2009.
As explained in the previous solar review, The Green Market’s solar stocks outperformed the market indices by 53 percent between March and August, and 28 percent between January and August.
Green Market stock like Canadian Solar (CSIQ) soared in 2009. For a six month period between March and August CSIQ was up 269 percent. Between January and August of 2009 CSIQ was up almost 200 percent. From August 11 until the end of December CSIQ increased 57 percent.
Thefirst 7 months of 2009 saw appreciable increases in the value of TheGreen Market’s solar stock, followed by declines in all but CSIQ fromAugust 11 to the end of December. The Green Market’s solar stockdecreased an average of less than one percent over the last 5 months of2009.
Since the start of the New Year, all of The Green Market’ssolar stock have increased in value averaging an increase of 6 percent.Although First Solar (FSLR) is the only Green Market solar stock whichhas declined since the start of 2010, as the largest and lowest pricedsolar producer in the world First Solar continues to be a good bet for2010. They are extremely profitable and they continue to increase theefficiency of their product by reducing the cost per watt.
Withsubsidies being cut and an over supply of solar cells this a difficultperiod for many in the solar sector. On the upside, price declines havebeen less than expected and the longer term horizon looks good.
Likethe Internet ten years ago solar is on the cusp of tremendous growthbut many investors are waiting for decisions about carbon that willdetermine solar’s trajectory. However, investors who take long positions with solar industry leaders will benefit the environment and enjoy returns that outperform the leading market indicators.
Richard Matthews is a consultant, sustainable investor, writer and owner of The Green Market Oracle, a leading sustainable business blog that covers the convergence of sustainable capitalism and the global environment.The Green Market is one of the most comprehensive resources for information and tools on sustainability. Follow The Green Market's twitter feed and see the Facebook Fan Page.
Richard is a contributor to more than 50 publications. Find him on Facebook and Linkedin.