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Solar Stocks “Light Up” the 4th of July

By Peter Lynch
July 05, 2006

In my last article on the 19th of June I said the following:

“Are we at another extreme, where the market has taken things too far? My guess it that we are far closer to a bottom in the correction than people realize.

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Everyone is afraid, the “blood is running in the street”, and there are no buyers for the stocks. It could not “look” more negative.

But what else is there to consider? How about the likelihood that there are ALSO no more sellers? Isn’t there an old saying: “it is always darkest before the dawn”?

Don’t all the “legendary” investors say that they buy when everyone else is selling?

This is certainly interesting to consider and maybe, just maybe, it is an excellent time to be buying “GREEN” stocks, when there is panic in the streets and everyone else is selling”.

Since that article it appears that the middle of June was, indeed, the exact bottom of the correction in the solar stock sector.

German PV Stocks verse German Dow (SX5P)

 

 

06/19/2006 to
07/04/2006

YTD 2006

 

Current Value

$ Change

% Change

$ Change

% Change

 

 

 

 

 

 

CGY-FF

50.15

$5.71

12.85%

$23.53

88.39%

ES6-FF

49.48

$3.93

8.63%

$6.54

15.23%

QCE-FF

70.40

$11.60

19.73%

$21.07

42.71%

SAG-FF

4.25

$-0.0600

-1.3921%

$-1.88

-30.67%

SFX-FF

11.41

$0.9400

8.9780%

$1.38

13.76%

SOO1-FF

36.38

$0.9200

2.5945%

$10.83

42.39%

SWV-FF

51.90

$2.60

5.27%

$23.90

85.36%

SWW-FF

11.30

$1.34

13.45%

$0.0200

0.1773%

SX5P

3396.78

$130.10

3.98%

$47.68

1.42%

U.S Solar Stocks verses Various Standard Indexes

 

 

06/19/2006 to
07/04/2006

YTD 2006

 

Current Value

$ Change

% Change

$ Change

% Change

 

 

 

 

 

 

DESC

5.19

$0.4900

10.4255%

$-2.39

-31.53%

DSTI

10.21

$1.44

16.42%

$0.8600

9.1979%

EMKR

10.05

$1.41

16.32%

$2.63

35.44%

ENER

36.70

$2.28

6.62%

$-4.05

-9.94%

ESLR

12.97

$1.40

12.10%

$2.32

21.78%

PBW

19.24

$1.09

6.01%

$3.05

18.84%

SPIR

7.45

$-0.2450

-3.1860%

$-0.0050

-0.0671%

SPWR

28.59

$1.53

5.65%

$-5.40

-15.89%

STP

28.85

$5.66

24.41%

$1.60

5.87%

WFR

37.94

$3.85

11.29%

$15.77

71.13%

S&P 500 Equal Weight

1723.04

$55.08

3.30%

$63.95

3.85%

S&P 500

1280.19

$40.05

3.23%

$31.90

2.56%

Dow Jones

11228.02

$285.91

2.61%

$510.52

4.76%

NASDAQ

2190.43

$80.01

3.79%

$-14.89

-0.68%

German PV stocks were up an average of 8.76% in the last 2 weeks.

U.S. Solar stocks were up an average of 10.54% in the last two weeks.

The rest of the markets were also up, but only about 1/3 as strong as the solar sector. Once again the solar sector seems to be taking on a leading role and hopefully it will continue.

Sometimes a stock picker gets lucky, but it is certainly worth noting that the “old stock market adages” are still worth remembering. No matter how many times it happens, the market always seems to take things to the extreme – one way or the other.

A serious investor need to remember this lesson and be aware of those times and, no matter how much it hurts, the ideal time to buy may be in a panic. That is usually when there are no more sellers, supply has dried up and stocks are finished going down.

The other think to keep in mind is that we are only seeing the very beginnings of the development of the solar and renewable industries. There are decades of enormous growth in renewables ahead of us and there will be many more stocks that will come public and many more profitable opportunities to “buy green”.

J. Peter Lynch has worked, for 29 years as a Wall Street analyst, an independent equity analyst and private investor, and a merchant banker in small emerging technology companies. He has been actively involved in following developments in the renewable energy sector since 1977 and is regarded as an expert in this area. He is currently a financial and technology consultant to a number of companies. He can be reached via e-mail at Solarjpl@aol.com.

Disclaimer
Peter Lynch is an independent columnist for this web site and may hold long or short positions in any of the stocks mentioned in this article and those positions can change at any moment. InvestorIdeas.com Disclaimer: www.InvestorIdeas.com/About/Disclaimer.asp, InvestorIdeas is not directly affiliated or compensated by the companies mentioned in this article. Nothing in the articles should be construed as an offer or solicitation or recommendation to buy or sell any specific products or securities. Past performance does not guarantee future results.

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