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Greenberg: Quake to Spark Solar Hype?

Monday, 14 Mar 2011 | 7:49 AM ET

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.

Check out the CNBC Green Page ...

Questions? Comments? Write to HerbOnTheStreet@cnbc.com

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