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Goldman Disses Solar - Cramer's Stop Trading ! (10/7/08)

by: SA Editor Joan Wickham October 07, 2008 | about stocks: MER / NYX / SLR    

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Recap of Jim Cramer's comments on Stop Trading! Tuesday October 7.

Solar No Good - Merrill Lynch (MER), First Solar (FSLR), NYSE Euronext (NYX)

Goldman Sachs has come out today and said that solar is no good. Cramer says their research is "well reasoned." People might have appreciated that call earlier, Cramer said, when First Solar was at $250, but he called the Goldman piece "daunting". "It's about average selling prices and a glut of solar panels." There could be weeks even months of estimate cuts. NYSE Euroext "had very good numbers for the month," said Jim Cramer, "but I know that there's just gigantic sellers in NYX." "I also wasn't happy that they're talking about how they're not in favor of the uptick rule anymore," he said. He's against the short ban, but "I just want the uptick back." As for reports that there's a software problem in the way of that, he said: "There's a big software problem, but the software problem might not trump what's happening now in Merrill Lynch, for instance." Maybe they should institute a rule that you can’t sell, only buy. That would solve some problems.

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This article has 5 comments:

  •  
    Oct 07 10:55 PM
    That would be the same Jim Cramer who pumped FSLR all the way to 317, declaring a breakout.... where I got squeezed out at a large loss. Of course, Goldman, who did the IB work, made big bucks all the way along, pumping solar and energy while they made a fortune. Now that the gig is up, they spin a new report. And they wonder why so many people like myself have utter contempt for them.
    Reply
  •  
    Oct 07 11:04 PM
    GS thinks short term. Oil is currently low so they diss solar. These guys have the memory of a fly. What will GS say about solar when crude oil is $400/barrel.
    Reply
  •  
    Oct 08 12:29 AM
    What are Goldman and Cramer thinking? Solar (after we get past the credit crisis) will soar. Great incentives were just included in the rescue bill that passed last week, although that has not been publicized. . And First Solar is in the technology that will really lower the cost/watt, thin film. Now (or whenever the free fall stops :) is the time to load up on FSLR and STP both, perhaps buying 2010 LEAPs or vertical debit spreads.
    Reply
  •  
    Oct 08 03:15 AM
    Goldman misses the potential of utility-scale solar projects to sop up any excess panels. Check out the deal PG&E made with SunPower & OptiSolar for an 800 MW plant, the size of a coal plant - this is a game changer. Prompted by an aggressive state renewable electricity standard, this utility had to buy a huge amount of solar panels. And guess what - those legislative requirements for renewable energy aren't going away! While wind energy companies (like Vestas & Broadwind Energy) may be the primary beneficiaries, we'll find that wind's growth will be limited in the medium term by transmission capacity. The extra renewable energy will likely come from utilities investing in solar.

    BTW, does it strike anyone as odd that Goldman Sachs owns Horizon Wind and is dissing solar now?
    Reply
  •  
    Oct 10 11:28 AM
    crammer saif buy fslr, thats what i remember. ok sell solar, what do we buy? solar is the only good buy in this market. plus tick rule must return. the melt down is a direct result of no plus tick. when gs is 45 maybe gs will wish they had the plus tick
    Reply
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