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New solar stocks on AEI . . . meanwhile is a solar crash in the offing?As promised a little while back, here they are; China Sunergy - a Nanjing-based solar cell manufacturer which floated on May 18th and LDK Solar which went public a few days ago. Is there no end to the Chinese Solar boom? Here's a man who thinks a more general solar correction is in sight - J. Peter Lynch. As he wrote recently here . . . "Back in September and October of 2006 all of the publicly traded solar stocks I follow regularly (15 in the U.S. and 12 in Germany) were just advancing through their 50 day moving averages. Currently, 12 of 15 (80%) of U.S. solar stocks are below their 50 day average and 9 of 12 (75%) of German stocks are below their 50 day average. This tells me that, more than likely, the solar sector is weakening and is potentially headed for a corrective phase". Added to this, I think some of the stories we have been seeing lately about polysilicon oversupply bringing down prices as soon as 2010 are at least a little overplayed. There is still massive undersupply which may necessitate some consolidation in the industry - that just might play out after a mini solar crash as is anticipated by Lynch. |

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