Solar Energy - Demand Starting To Dim?


Earlier in the week solar giant Energy Conversion Devices reported a 81 percent drop in third-quarter profit due to weak demand for solar power in the United States.

And to make matter worse, the company declined to provide outlook for the fourth quarter, citing poor visibility.

It wasn’t long ago that skyrocketing demand for solar power was a bright spot in the global economy. But a pullback in solar subsidies in Spain and frozen credit markets has recently choked off demand.

On a conference call with analysts, Chief Executive Mark Morelli explained that the company had lower-than-anticipated product sales and higher-than-expected inventory levels at the end of the quarter.

And according to Raymond James analyst Pavel Molchanov "their news adds to the perception that demand is very, very poor."

Sounds bleak. So what should you do? Just when things look their worst is when you might want to strike.

I think Energy Conversion Devices has a great balance sheet, counsels Pete Najarian. I’d take a look.

But if you want to steer clear of the volatility look at IBM . They’re kind of secretly involved in solar.

Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send those e-mails to fastmoney@cnbc.com.

Trader disclosure: On May 12th, 2009, 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 (PCLN),(GS), (WFC), (AGU), (NFLX), (TGT), (WFC), (AMZN), (SDS); Finerman's Firm Owns (BAC) Preferred; Finerman;s FIrm Is Short (BAC), (MSFT), (PBR), (RIG), (UNH); Seymour Owns (AAPL), (BAC), (BX), (EEM), (FXI), (PBR), (POT), (TSL); Najarian Owns (AMD) Calls; Najarian Owns (BX) Calls; Najarian Owns (CROX) Calls; Najarian Owns (F) & (F) Calls; Najarian Owns (INTC) Call Spread; Najarian Owns (MS) & (MS) Calls; Najarian Owns (MOS) Call Spread; Najarian Owns (PALM) & (PALM) Calls; Najarian OWns (XHB) Call Spread; Najarian Owns (XLB) Call Spread; Najarian Owns (XLU) Calls

CNBC.com with wires