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Fast Money HomeFast Money Rapid RecapAbout Fast MoneyFast Money BiosFast Money Web ExtraFast Money Disclaimer
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Aug.13
9:18 PM ET

Before you play solar make sure you can handle the heat. Sometimes these stocks are white hot and other times they’re ice cold.

On Wednesday, LDK Solar [LDK  Loading...      ()   ] signed a five-year contract to supply solar wafers to a company in India and shares climbed as you might expect. (That tidbit followed positive earnings from earlier in the week.)

On Tuesday Applied Materials [AMAT  Loading...      ()   ] said during the third quarter it grew revenue in its solar business and shares surged higher.

But on the flip side, Canadian Solar [CSIQ  Loading...      ()   ] (which is based in China) reported stronger than expected earnings on Wednesday but its shares took a tumble

How can you make heads or tails of this sector?

Solar is growing 40% annually, explains Pete Najarian That’s why IBM [IBM  Loading...      ()   ], Hewlett-Packard [HPQ  Loading...      ()   ], Intel [INTC  Loading...      ()   ], and Applied Materials are all getting involved in the space and I think they’re all worth a look.

My trade is Evergreen Solar [ESLR  Loading...      ()   ], says Guy Adami. At current levels it's a buy. If and when the stock spikes on positive news such as a new contract, then it's a sell.


















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Trader disclosure: On Aug 13, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (MSFT), (WMT), (COST); Adami Owns (C), (GS), (INTC), (AGU), (BTU), (MSFT), (NUE); Pete Najarian Owns (AAPL), (TSO), (HD); Pete Najarian Owns (BGG) Puts; Pete Najarian Owns (CSCO) Calls; Pete Najarian Owns (NOK) And Is Short (NOK) Calls; Finerman Owns (GS); Finerman's Firm Owns (MSFT), (NOK), (SUN), (TSO), (VLO), (RIG), (MO); Finerman's Firm And Finerman Own (C) Leap; Finerman's Firm Owns (ANF) And (ANF) Call Spreads; Finerman's Firm Is Short (XLF), (BBT), (COF), (WB),  (IYR), (IJR), (IWM), (SPY), (BAC); Finerman's Firm Is Short British Pounds

UBS Securities LLC Has Received Compensation From (MSFT), (YHOO) Within Past 12 Months; (MSFT), (YHOO) Is Or Within Past 12 Months Has Been A Client Of UBS Securities LLC (Non-Investment Banking Securities-Related Services); (MSFT) Is Or Within Past 12 Months Has Been A Client Of UBS Securities LLC (Non-Securities Services)

© 2008 CNBC

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