Solar Shares Under Pressure from Credit Crunch and Pricing

Source: Seeking Alpha, Eric Savitz (10/15/08)

Deutsche Bank’s Steve O’Rourke observed in a research note Wednesday morning that while companies expect some negative impact from tighter credit in 2009, “quantification is presently impossible.” On pricing, he notes that most solar module companies continue to forecast a price decline in 2009 of under 10% - but he says that a drop of more than 20% is “increasingly likely.”

As the Solar Power International conference continued Wednesday in San Diego, solar stocks continue to lose ground in the face of ongoing concerns about both the ongoing credit crunch and the possibility of a steep drop in pricing in 2009.

Deutsche Bank’s Steve O’Rourke observed in a research note Wednesday morning that while companies expect some negative impact from tighter credit in 2009, “quantification is presently impossible.” On pricing, he notes that most solar module companies continue to forecast a price decline in 2009 of under 10% - but he says that a drop of more than 20% is “increasingly likely.”

Writes O’Rourke: “The over-arching, unanswerable question is one of potential demand destruction in 2009 due to the present credit crisis. No one knows, and no company was willing to offer any kind of quantification. The common belief seems to be that it will be slightly to moderately negative.”

UBS analyst Stephen Chin wrote Wednesday morning that solar projects are largely on track, with financing still available given attractive internal rates of return of over 8%. But he agrees with O’Rourke that pricing is likely to drop 20% in 2009...

Announcing Streetwise Live! Events
Source: Streetwise Reports (07/13/2020)

Streetwise Reports is offering 100 investors—at no charge—the opportunity to meet via Zoom with executives of precious metals companies as they discuss recent developments at their companies and upcoming catalysts.

"China's export quota could be opportunity for Canadian miners"

Mexico: Gold's Next Powerhouse Player
Source: Marc Davis, BNW News (11/03/2009)

As the world's key gold producing nations struggle mostly in vain to replenish dwindling below-ground supplies, Mexico is bucking the trend in a big way.

Where Have All the Gold Mines Gone?
Source: Brent Cook, Exploration Insights (04/14/2009)

Given the declining global gold production, mining companies’ demand for reserve replacement and the acute dearth of new gold discoveries, there is no doubt that real economic discoveries will be exceptionally valuable. . .the opportunity for stellar profits is the best it has probably ever been. Identifying the few successes, however, will require vigilant and constant technical assessment of geology and drill results, always with an eye to mine economics.

Congo Completes Mining Review, Says Majors Quit Talks
Source: Reuters (12/20/2008)

"Review process is extended an additional 45 days to allow six companies to return to the negotiating table for direct talks with government ministers."