Solar Stocks Rip Higher On Speculation of $30B China Green Stimulus

Solar stocks are ripping higher today on hopes for the China industry subsidy, with one analyst suggesting the price tag on green stimulus in China could be $30 billion.

Analysts at Piper Jaffray are commenting on developments and are more positive. Analyst Jesse Pichel said, "We have continued to maintain a dialogue with senior officials in the Chinese government involved with Renewables initiatives and funding at a national level. That dialogue has led us to a much higher level of confidence than before and we see a 4-6 quarter positive impact that could be material. While we have no information that is specifically targeted at solar, we believe solar is likely a beneficiary after Wind."

Pichel also said, "While we can confirm that recent news about new solar subsidies from the Dept of Construction is too premature to quantify, our checks indicate where there is smoke, there is fire. Recent announcements are just the tip of the iceberg. We have learned from our contacts at NDRC-National Development and Reform Commission- that a $30B USD Green Stimulus is planned."

Pichel upgraded Canadian Solar Inc. (Nasdaq: CSIQ) from Sell to Neutral, $6 price target on the news.

Solar stocks

• Suntech Power Holdings Co., Ltd. (NYSE: STP) +10%
  
• Yingli Green Energy Hold. Co. Ltd. (NYSE: YGE) +12%
  
• Canadian Solar Inc. (Nasdaq: CSIQ) 20%
  
• LDK (NYSE: LDK) +13%
  
• ReneSola (NYSE: SOL) +9%
  
• JA Solar Holdings Co., Ltd. (Nasdaq: JASO) +14%
  
• Solarfun Power Holdings Co., Ltd. (Nasdaq: SOLF) +12%
  
• First Solar, Inc.(NASDAQ: FSLR) +2%
  
• Energy Conversion Devices, Inc. (Nasdaq: ENER) +2.5%
  
• SunPower Corporation (Nasdaq: SPWRA) +3%
  
• Evergreen Solar (Nasdaq: ESLR) +6%
  
• DayStar (Nasdaq: DSTI) +7%
  
• Ascent Solar (Nasdaq: ASTI) +8%
  
• Hoku Scientific, Inc. (Nasdaq: HOKU) +4%

Broadly, the sector is up 6% as represented by ETF Claymore/MAC Global Solar Energy (NYSE: TAN).

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