Solar Stocks Up Again On More Details Of China's 'Green' Stimulus

Solar stocks are strong across the board today again, with the sector up 2.9% as represented by the ETF Claymore/MAC Global Solar Energy (NYSE: TAN). The move is again being attributed to a positive view on the China industry subsidy.

Piper Jaffray analyst Jesse Pichel issued an update today on the China stimulus. He noted today that the MOF together w/ Dept of Construction issued an "FAQ" on the 20rmb/w solar initiative. Pichel notes that still no dollar amount of the cap is disclosed, but the document did point out that 1) 20rmb/w is the best case scenario, and 2) a cap will be determined.

Pichel said they learned that, "within the past 24 hours the Chinese govt has starting reaching out to the China solar companies to begin a dialog on the stimulus plan (which includes the 20rmb/w initiative). Pichel cautioned though that it is still premature to quantify the broader impact of the stimulus plan and we continue to believe it is a 2010 story.

Pichel confirmed that 210 billion RMB (~$30B USD) out of the 4 trillion RMB ($585B USD) will be allocated to green initiatives. At http://www.sdpc.gov.cn/xwzx/xwtt/t20090306_264928.htm investors can view the website that documents the directive.

Solar stocks:

• Suntech Power Holdings Co., Ltd. (NYSE: STP) +7%
  
• Yingli Green Energy Hold. Co. Ltd. (NYSE: YGE) +5%
  
• Canadian Solar Inc. (Nasdaq: CSIQ) 14%
  
• LDK (NYSE: LDK) +7%
  
• ReneSola (NYSE: SOL) -5%
  
• JA Solar Holdings Co., Ltd. (Nasdaq: JASO) +6%
  
• Solarfun Power Holdings Co., Ltd. (Nasdaq: SOLF) +5%
  
• First Solar, Inc.(NASDAQ: FSLR) +1%
  
• Energy Conversion Devices, Inc. (Nasdaq: ENER) +0%
  
• SunPower Corporation (Nasdaq: SPWRA) +0%
  
• Evergreen Solar (Nasdaq: ESLR) +4%
  
• DayStar (Nasdaq: DSTI) +9%
  
• Ascent Solar (Nasdaq: ASTI) +1%
  
• Hoku Scientific, Inc. (Nasdaq: HOKU) +4%

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