Quick thought: In the wake of Japan’s nuclear meltdown, solar stocks are likely to heat up today.
Already, in overseas trading, such German companies as SolarWorld and Q-Cells have run up around 15 percent.
Much of that may be short-covering, as investors play the solar card following headlines about nuclear uncertainties.
But Gordon Johnson of Axiom Capital—currently a solar bear—warns that quake or no quake, the issue of government-funded solar subsidies remains unclear following cutbacks in Europe.
That’s reflected in the MAC Solar index, which in recent weeks has fallen nearly 20 percent—most recently after solar-subsidy cuts in Italy and France.
Still, with solar, perception tends to be reality. And the perception, today at least, is that solar will be the salvation.
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