Last year, when the price of crude went soaring so did the share price of most solar stocks. Investors bet the high cost of oil would stimulate interest in alternative energy. Seems logical, so why didn’t that happen this time?
LDK Solar is down 25% this year while Evergreen Solar is off nearly 50%. What’s going on?
The solar names were way ahead of themselves, explains Pete Najarian. The returns were huge in ’07. I would look at coal instead he counsels. Check out firms involved in gasification such as Sasol.
I like MEMC Electronic for silicon wafers with a stop out at $62.90, adds Guy Adami.
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Trader disclosure: On May 7, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders: Adami Owns (C), (GS), (INTC), (MSFT), (AGU), (NUE), (BTU); Pete Najarian owns (AAPL), (C) Calls, (ENER), (MSFT) Calls, (TSO), (XLF), (YHOO) Calls; Macke Owns (INTC), (DIS0, (ATVI), (MSFT); Finerman’s Firm is Short (IYR), (IJR), (SPY), (MDY), (IWM), Owns SPX Index Puts, (AEO), (MSFT), (NYX), (PLCE), (TSO), (VLO), (YHOO) and (YHOO) Call Spreads, Finerman Owns (GS), Finerman and Finerman’s Firm Own (C)