WHy are the solar stocks down today? Can anyone please explain the relationship btw oil and solars? THX?

Question

I know oil has been up for a while and will probably continue. I'm confused about the relationship between solars and oil though. Won't people invest more in solar companies once the price of oil and overall energy rises?

The solar stocks are down today, and I'm planning to buy some SOL which is fundamentally strong. I think it can easily give a 10% profit once the market gets out of the fear. Do you see anything wrong with my decision?

I appreciate all the answers. THank you

Answer 1

I don't see anything wrong with buying SOL.  It is however just a tad on the expensive side but the industry is growing very rapidly, especially the Chinese solar industry.  However, if you are looking for just a 10% profit on your trade, you may miss out on a potential 25% or 50% or 100% or even larger profit.  

I avoid trading for that very reason.  If I think a stock has potential, I buy it and hold until the fundamentals change.  

My favorite Chinese solar company is TSL, also down today and yesterday but getting back into my buying range.

Answer 2

I am a energy worker- this only a opinion . solar is not something that they can just throw together -it takes a lot of money and planning where on the other hand when the price of oil goes up I see oil and gas rigs pulling into town  ,and pipes being drilled just as fast as they possible can. solar would be good for long term ,but don't expect to see fast profit due to oil price.

Answer 3

Actually solar power is getting cheaper, but the question is who are the buyers?  There are over 1 million homes in forclosure and many people are thousands of dollars in debt.  Chances are anybody with money has no place to stick their solar panel.

Answer 4

Solar is still a long way off becoming viable in most of the world. even with a high oil price the sheer effort required to make solar pay-off means it is still 10 years or so away from good being a real competitor to oil.

Nonetheless, some solar stocks, like renesolar, have done very well. overall they are a long-term bet, but best for a retirement portfolio and not for short-term trading

http://www.cityunslicker.blogspot.com

Answer 5

Solar is the energy of the future, but for the most part, solar STOCKS are already overpriced. Only the people who bought years ago will make any money in the long run.