Somehow, perception often matters more than reality. One of the big bogey’s for the solar sector as a whole was the uncertainty surrounding an extension of tax credit for the sector in the US. That might sound pretty reasonable, unless one realizes that many a solar company’s share price severely suffered at times that extension seemed in doubt.
Combine that with the fact that the US is, at present, not a terribly important market (Germany constitutes about half of all world demand for solars), and that many of those companies with suffering share prices did not even sell in the US (or in negligible amounts), and we have something of an anomaly.
Well, perhaps not for long. With an overwhelming majority (yes/no/abstain: 92/6/2), the US Senate has voted in favour of extending the solar tax credits. The ball is now at the White House, but things are looking better.
Combine this Cowan upping FY 2008 earnings for our favourite solar, TSL, and even a little rally might ensue.
Always things to spoil the fun though, a rough market due to GE’s disappointing earnings, and spot polysilicon prices breaking the $500 barrier. Oh well, one can dream…