Tuesday, May 8, 2012

Solar Stocks Fall as Chinese Manufacturing Shrinks

After producing gains for investors at the beginning of the year solar companies across the board have seen some significant losses recently. Chinese solar companies tumbled this week as recent data suggested that manufacturing in China was shrinking, underlying concerns of China's growing economic problems. Shares of U.S. Based First Solar Inc. also took a beating after they were downgraded to "sell" by Maxim Group LLC. Five Star Equities examines the outlook for companies in the Solar Industry and provides equity research on LDK Solar Company LDK -0.35% and Trina Solar Limited TSL -2.30% .

Access to the full company reports can be found at:

www.FiveStarEquities.com/LDK www.FiveStarEquities.com/TSL

The China Purchasing Managers Index showed a preliminary reading of 49.1, according to HSBC Holdings Plc and Markit Economics, signaling that manufacturing in China has contracted for the sixth consecutive month. This reading supports the growing concerns that the second biggest economy in the world may continue to falter. "Investors and analysts are trying to determine who are going to be the survivors in the industry in the long term," said Michael Obuchowski, chief investment officer at First Empire Asset Management. "The manufacturing numbers out of China are apparently panicking people and downgrades don't help either."

Read More

No comments: