Solar and commodities rise, broad markets retreat (week ending 6/20)

Author: Mark Henwood

Emerging Markets, EAFA, and S&P500 all fell more than 2% this week. With the exception of Solar, all Camino’s PurePlay followed the markets downward.

Solar’s stong showing came on a variety of positive news for the sector. We learned of potential involvement of large player (IBM and INTC), supply deals (ESLR) and potential production expansions in thin film. There was no negative news on the regulatory front. All of this translated into a 4.5% advance narrowing its YTD loss to 20.2%

After writing this column for 15 weeks I’m starting to better understand the key price drivers for the strategies. In Solar I see investors driving prices down on potential reductions in governmental support and concerns on silicon supply. Orders and realized growth drive prices up. In Renewable Electricity power solicitations and resulting equipment orders drive stocks up, project problems drive prices down. In Biofuels prices reacti to the fuel margin, as measured by futures contract prices, and actual earnings. In Fuel Cells its progress against business plans with any slippage driving prices down.

Mark is the founder of Camino Energy, an information provider specializing in globally traded sustainable energy stocks. He also is an investor in sustainable energy stocks and has positions in Renewable Electricity. Mark will be traveling in Africa so the next column will be for the week ending July 11.
0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply