Here’s Why Solar Stocks are Getting Burned Now
Solar stocks are under severe pressure. A disaster at JinkoSolar (NYSE:JKS) has caused the stock to drop 23.3%. Among other stocks GTAT Advanced Technologies (GTAT) has declined 12% and Guggenheim Solar ETF (NYSE:TAN) is down 6%. The major reason here is weak demand, which has triggered competitive pricing cuts throughout the industry.
Matters have been made worse by news of a toxic chemical disaster at JinkoSolar’s (NYSE:JKS) plant in China, forcing its closure. The chemical leak led to violent demonstrations against the company, which makes solar panels.
JinkoSolar is trading at $7.03 today, down 22%. Shares are down over 27% year to date. The stock’s trading range for the year is between $6.65 and $17.50.
Traders will be active in the solar sector today: First Solar Inc. (NASDAQ:FSLR), Suntech Power Holdings (NYSE:STP), Yingli Green Energy Hold. Co. Ltd. (NYSE:YGE), LDK Solar Co. (NYSE:LDK), Canadian Solar Inc. (NASDAQ:CSIQ), Trina Solar Limited (NYSE:TSL), JA Solar Holdings Co. (NASDAQ:JASO), MEMC Electronic Materials(NYSE:WFR), and GT Solar International Inc. (NASDAQ:SOLR), and SunPower Inc (NASDAQ:SPWRA).