Get Even More Visitors To Your Blog, Upgrade To A Business Listing >>

Solar shakeout less likely to hit wafers and silicons

FRANKFURT (Reuters) - Solar energy companies which operate further away from end-customers -- such as wafer and silicon producers -- are likely to fare better during a looming shakeout in the sector than their cell and module-making peers.
In recent years, solar companies have enjoyed significant growth rates and a keen appetite from investors. But the crisis in financial markets has taken its toll on the industry and a falling oil price has curbed demand for renewables, prompting analysts and industry experts to predict a wide-ranging consolidation is around the corner.

This is less likely to hit high-quality producers of wafer and silicon -- both needed to make solar cells -- than cell and module makers suffering from low prices and oversupply, analysts say.
"Producers of wafer and silicon will come out as the likely winners from the shakeout as they are under less pricing pressure than the cell and module producers," said Bjoern Glueck, portfolio manager at Lupus alpha which has 1.3 billion euros (1.1 billion pounds) under management in European micro-, small- and mid-cap stocks.

Analysts at HSBC forecast average selling prices for solar systems will drop by about a fifth in 2009 given oversupply and a tighter credit environment, but prices for cells and modules have so far fallen much faster than those for silicon and wafer. Several industry bellwethers, such as cell producers Q-Cells and Sharp as well as module maker Solon have had to revise outlooks.
"While we forecast margin erosion through the whole solar value chain, we believe investors should focus on the beginning of the value chain given longer-term contracts, more stable cash flows and the tighter supply/demand balance," HSBC analysts wrote.

They say that in the long term this will favour silicon producers with low-cost operations such as Germany's Wacker Chemie and Hemlock Semiconductor, a joint venture of Dow Corning, Shin-Etsu Handotai and Mitsubishi Materials.

[SigmaForex Money Manager]

Elevate the quality of your trading, Money managers trading pooled or individual client funds benefit from Sigma’s trading and administrative tools and services.

With preferential rating access to Sigma’s research staff, sophisticated trading platform and reporting tools, Sigma’s money manager solution is one of the most competitive in the marketplace.
Sigma provides a dedicated team of account management specialists to provide ongoing back-office support, and help reduce your administrative responsibilities.
Highly developed trading platform

Our trading platform feature quality execution capabilities as well as advanced and easy-to-use order entry and position management tools, all in a secure friendly environment. A full suite of decision support tools, from charting to research, news and more, are also available to clients all for free.
Characteristic tools
Our proprietary tool offers money managers a comprehensive and efficient way to manage pooled customer funds and track portfolio performance. Accessible online, the system automatically journals percentages of your transactions from your Master account into your client's sub accounts at the close of each trade.

We also support the needs of money managers who wish to execute trades and place orders on a per account basis. Reporting capabilities are available directly within the application, as well as real-time margin and P&L.
Back-office support
Our Partner Services team is dedicated to providing full account management support to our money managers and your clients. Our customer support is 24 hours, customers may fund around the clock. Sigma’s Partner Services team is dedicated to providing Outstanding Compensation and full account management support.

For more details contcat [email protected]

This post first appeared on EARN MONEY WITH SIGMAFOREX, please read the originial post: here

Share the post

Solar shakeout less likely to hit wafers and silicons


Subscribe to Earn Money With Sigmaforex

Get updates delivered right to your inbox!

Thank you for your subscription