Two Weeks In Cleantech, July 2nd to July 16, 2013

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Jeff Siegel

7/2/13: LDK Sells Shares

LDK Solar (NYSE:LDK) is down in pre-market this morning after announcing the sale of 25 million newly issued shares to Fulai Investments Limited for $1.03 per share with an aggregate purchase price of $25.75 million. LDK closed at $1.40 yesterday afternoon.

7/9/13: How High Can Tesla (NASDAQ:TSLA), SolarCity (NASDAQ:SCTY) Go?

  • First Energy Corp (NYSE:FE) has announced that it plans to deactivate two coal-fired power plants in Pennsylvania by the end of the year. The reason? FE claims its weak power prices and the high cost of complying with stricter environmental rules. But let’s face it, the primary culprit is dirt cheap natural gas, and this is unlikely to change anytime soon. The two coal-fired power plants that are about to be put out to pasture represent about ten percent of the company’s total generating capacity. Interestingly, FE doesn’t look like a bad deal right now. I like it below $36.00, particularly with that 6% dividend.
  • It looks like shorts might be getting squeezed again today on SolarCity (NASDAQ:SCTY). The stock is up a little more than one percent this morning, touching $41.50. If it crosses $42, we’ll likely see a run up to around $46. Full disclosure: I currently own shares of SCTY.
  • Tesla (NASDAQ:TSLA) crossed $120 for the first time this week. In pre-market, it’s now trading above $125. Will it keep heading north? We’ll soon find out.

7/15/13: SolarCity (NASDAQ:SCTY) Will Profit from China Announcement

China has announced that it plans to more than quadruple its solar capacity to 35 gigawatts by 2015. Folks, this is massive and should not be ignored. Particularly because China-based solar companies are so heavily reliant upon the actions of the Chinese government. From mind-boggling incentives and subsidies to mandated solar integration, the Middle Kingdom is doing everything it possibly can to keep its solar machine running.

Certainly this is good news for Chinese solar stocks. The major players here, like Trina Solar (NYSE:TSL), Canadian Solar (NASDAQ:CSIQ), and JA Solar (NASDAQ:JASO), are all up in early trading. But this is also good news for solar installers looking to keep those cheap panels rolling in. Certainly solar financing and leasing company SolarCity (NASDAQ:SCTY) has a lot to gain from this, too. SCTY is also up in early trading, and actually crossed $44.40 in pre-market.

7/16/13: Siemens (NYSE:SI) Could Benefit from New Green Bonds

More good news for renewable energy supporters. This morning we learned that the European Investment Bank has issued an $848 million “green bond” which it will use to finance energy efficiency and renewable energy projects in Germany and France. I suspect that with the Germans getting so aggressive on offshore wind, Siemens (NYSE:SI) is likely to benefit from new projects getting financing through the “green bond.”

Jeff Siegel is Editor of Energy and Capital, where these notes were first published.


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