Wasn’t this the industry of the future?
Solar Stocks Ending As Penny Stocks?
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Will solar stocks end up as penny stocks? Well, that’s quite possible. Here is Seeking Alpha contributor Tom Winnifrith:
Amid the blind rush to combat global warming, solar energy was seen as a slam dunk growth industry. Investors rushed to risk speculative capital. Governments rushed to spunk taxpayers’ cash up against the wall. And now it is all ending in tears.
He goes on to provide a rationale for shorting two particular solar stocks, LDK Solar (LDK) and JA Solar (JASO). And indeed, he might very well be right and make some money from these short positions:
I offer up LDK Solar at $1.38 and JA Solar at $0.96. In both cases, my target price is more or less nothing. I am sure that there are other shorts out there in this sector, and I will move on to others at a later point.
Before we get to the merits of shorting solar stocks, there is something else as Winnifrith then goes on making a curious statement:
I personally do not believe that there is a shred of evidence for man-made climate change. But the political elites embraced the idea with an almost religious fervor. That is to say they could not accept that there was any doubt about the idea, even though there is actually no evidence for it at all.