Solar Steps Up
I still think solar, photovoltaic in particular, is way undervalued right now. Sunpower (SPWRA) and JA Solar (JASO) both announced solid earnings today continuing performance at a time when sales are supposed to be reaching a peak.
Investors are expecting a slowdown for solar in 2011 but so far I’m not seeing it happening. And companies don’t seem overly concerned about lower demand in 2011. Costs are consistently going down, demand is picking up, it’s all good. In fact, Sunpower thinks it will lower cost per watt to $1.48 in Q4 next year. That’s 29% lower than Q4 2009. On a levelized basis, which considers land and connection costs that’s close to the cost of First Solar (FSLR), the cost leader.
Residential sales are also holding up well even without big government subsidies. The bottom line is this… Until all this doom and gloom shows it’s head I’m going to stay long solar. I’ve taken positions in FSLR and SPWRA. If interested you should also check out JASO and SOLF.
Disclosure: The Mayor is long SPWRA and FSLR.