Note on Solars, courtesy of NotableCalls — suggesting shorting FSLR, and oil.
Solar may be under attack again today
Solar stocks may be under attack again today… Bloomberg is reporting First Solar’s (FSLR) 2nd largest shareholder sold half his shares. Meanwhile, Chinese poly wafer producers LDK Solar (LDK) and ReneSola (SOL) have been downgraded. It is noteworthy that Morgan Stanley underwrote LDK’s convert offering and upgraded LDK at the same time. MS seems to come clean finally that LDK is not a buy.
Time to short FSLR too. I’ve noticed that FSLR CEO Ahearn sold nearly 1/2 of his position since it started to trade in the high $200s. How could that not be bearish for the stock when the firm’s founder dumps his shares like thin film is going out of fashion.
I believe the smart money will rotate out of solar/wind and into healthcare (down about 50% YTD).
By the way, oil is down as I suspected – time to short oil big time! Net long positions fell by nearly 80% since june 2007. Hedge funds are reportedly pulling out their investments as the government is getting ready to crack down on speculators.
Notablecalls: These comments come from a close Solar watcher.
