Solar stocks have gotten beaten to the ground, to put it nicely. The global solar index TAN is trading around $5, down from a 52 week high of 30. The gloomy economic outlook seems to have hit solar companies especially hard, as recent reports reveal that about 80% of solar companies in China have gone bankrupt in the last year. Tumbling oil prices really don't help the situation either, as solar is generally positively correlated with the price of oil. With solar names sinking to new lows and having a RSI in the twenties, it's no doubt people are dumping solar. However, assuming the economy eventually recovers and the global demand for oil resumes, the prospect for solar has never been brighter.
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1 comment:
Solar stocks are cheap.
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