Solar Stocks Fall as Barron's Interview Spooks Bulls (FSLR, WFR, STP, more)

Most solar stocks are moving lower today even in light of crude oil which finished slightly higher this afternoon. Traders are attributing the weakness to a bearish article in Barron's over the weekend. The Claymore/MAC Global Solar Index ETF (NYSE: TAN), or the TAN, is down more than 1.2% today.

The publication did an interview with Hapoalim Securities Gordon Johnson, a noted-solar bear for quite some time now (October 2008). The analyst is currently expecting supply within the PV sector of 7.1GW for 2009 and 10.8GW for 2010. Looking at demand, Johnson is modeling for 4.3-4.5GW this year and about 6GW next year. Bottom line, "things will remain challenging for the solar companies."

Johnson believes solar stocks have recently run due to unwarranted excitement related to a recent announcement out of China that it will consider a local feed-in tariff. The analyst believes that this recent rally allows bearish investors a great entry point to short.

Taking a look at some individual stocks the analyst covers:

• MEMC Electronic Materials (NYSE: WFR) - $9 price target. The stock is down 3.4% to $16.71.
  
• Suntech (NYSE: STP) - modeling for EPS of $0.07 in '09 and $0.12 next year, $9 price target. The Street is looking for FY09 and FY10 EPS of $0.21 and $0.58, respectively. The stock is down 2.9% to $15.30.
  
• First Solar (Nasdaq: FSLR) - FY09 EPS estimate of $6.56, FY10 estimate of $3.07. The Street is currently looking for FY09 and FY10 EPS of $7.25 and $7.29, respectively. Shares are down 3.3% to $147.89.
  
• SunPower (Nasdaq: SPWRA) - sees FY09 EPS of $0.98, versus the consensus of $1.19, and FY10 EPS of $1.11, versus the Street estimate of $1.84, $15 price target. The stock is down 0.6% to $30.33.
  
• Trina Solar (NYSE: TSL) - calls its "probably the best-positioned", $24 price target. Stock is up 2.9% to $32.27.
  
• Yingli Green Energy (NYSE: YGE) - $9 price target. Shares are down 2.9% to $12.24.

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