Monday, January 30, 2017

Crash : Solar sector

Description :

First Solar, Inc. is a provider of photovoltaic (PV) solar energy solutions. The Company designs, manufactures and sells PV solar modules with thin-film semiconductor technology, and also develops, designs, constructs and sells PV solar power solutions. The Company operates through two segments: components and systems. The Company's components segment designs, manufactures and sells solar modules, which convert sunlight into electricity. The Company's systems segment provides PV solar power systems or solar solutions for systems, which use the Company's solar modules. The Company provides operations and maintenance (O&M) services to plant owners that use solar modules manufactured by the Company or by other third-party manufacturers. The Company has approximately 30 manufacturing lines around the world and over 2.8 gigawatts (GW) of annual manufacturing capacity with lines having a production capability of approximately 2,500 modules per day.
Aug 2007 : USD100 level
May-2008 : USD300 level
Nov-2008 : USD 90 level
May-2009 : USD 200 level
Feb 2010 : USD 100 level
Aug 2011 : BROKEN USD 100 level

Mid-2012 : USD 12 level

June-2013 : USD50 level

Peak at Aug-2014 : USD70 level

current : Jan-2017 at USD 30 level.

Check the volatility ... in 'solar' sector ... and now we are going to visit low @ mid-2012 again due to Trump's policies on 'renewable energy'.

The sector will be crashing lower and CRUDE OIL will recover from here.

SunPower : During the 2012 crash ... it was around USD5. Currently trading at low USD6.40. During mid-2008, it was trading at USD100. Imagine if one caught at high-cycle level ... and didnt cut-loss. Now we are going back to low of the cycle ...

TAN (ETF for Solar) : If we want to look at the sector, we could check the ETF related to the sector ... and one could clearly se the down cycle. There are many solar-companies closed-shop ... in mid-2008, at the peak ... TAN is traded at USD300 level ... today is USD17 level.


Guggenheim Solar ETF, formerly Claymore/MAC Global Solar Energy Index ETF, seeks investment results that correspond generally to the performance of an equity index called the MAC Global Solar Energy Index (the Index). The Index consists of approximately 25 stocks selected based on the relative importance of solar power within the Company's business model, as determined by MAC Indexing LLC (the Index Provider). The Index is designed to track companies within the business segments of the solar energy industry, which include companies that produce solar power equipment and products for end users, companies that produce fabrication products (such as the equipment used by solar cell and module producers to manufacture solar power equipment) or services (such as companies specializing in the solar cell manufacturing or the provision of consulting services to solar cell and module producers) for solar power equipment producers. The Fund’s investment advisor is Claymore Advisors, LLC.

Market vector for the solar-sector ... strong down-trend. Expect more downside as Trump is stomping on the whole sector.
With Trump ... solar-sector would NOT be good to invest. Avoid.
So ... can we buy inverse-ETF for the sector since we expecting more downside? Good question ...
Well .. guess I have sent some messages here.

With DOW going to 30,000 level ... will we see 2000 level for KLCI?

Think ... what should we do?


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