Struggling Solar Stocks at Risk of Being Delisted

The announcement this week that China-based Suntech Power Holdings (NYSE: STP), which bills itself as “the world’s largest producer of solar panels,” is at risk of being delisted by the New York Stock Exchange, cannot be good news for the solar industry. The announcement came about a month after Suntech founder Zhengrong Shi surprised analysts by stepping down as CEO. He remains Chairman and Chief Strategy Officer.

Suntech stock, which was trading for $2 the last time we checked in May, closed Sept. 25 at $0.92, down 9 cents for the

Photo courtesy of nrel.gov

day. Per NYSE rules, Suntech has six months following the NYSE warning (which came Sept. 10) to get its average stock price back up over $1 over a 30-day period.

China-based JA Solar (Nasdaq: JASO), which bills itself as “China’s largest solar-cell maker,” is also being threatened with a delisting. JASO announced Sept. 24 that it is seeking to strengthen its balance sheet by buying back $89.2 million of its debt. It last closed above $1 on Aug. 28. JASO closed Sept. 25 at $0.85, no change for the day.

This gloomy news prompted us to take a look at several other solar stocks we have followed in the past. They include:

 Tempe, AZ-based First Solar (Nasdaq: FSLR, http://www.firstsolar.com/), which specializes in thin-film solar modules, has bounced back from its year-long slide. FSLR traded as high as $142 during the summer of 2011, but fell down to $13.66 when we last checked in May. FSLR closed Sept. 25 at $20.51, 49 cents on the day.

Ontario, Canada-based Canadian Solar (Nasdaq: CSIQ, http://www.canadian-solar.com/ ), which sells a variety of solar products, has seen its stock price stabilize since December. Back in summer 2011 CSIQ traded for more than $12 but by last May it had dropped to $2.70 with a market cap of $117 million. CSIQ closed Sept. 25 at $3.01, up 2 cents on the day. It’s market cap is now $130 million.

San Jose, CA-based SunPower Corp. (Nasdaq: SPWR, http://www.sunpowercorp.com/) makes a wide variety of solar products and systems. SPWR stock in mid-May was trading for about $5. SPWR closed Sept. 25 at $4.60, down 14 cents on the day. Its market cap is now $547 million.

China-based LDK Solar Co. (NYSE: LDK, http://www.ldksolar.com/) manufactures solar products and silicon materials. LDK, which was trading for nearly $5 in late December 2011, dropped down to $2.85 in mid-May with a market cap of $373 million. It closed Sept. 25 at $1.25, down 4 cents on the day. Its market cap is now $167 million.

China-based Trina Solar Ltd. (NYSE: TSL, http://www.trinasolar.com/) designs, manufactures and sells photovoltaic modules worldwide. It has a chart similar to many of the other solar stocks, which reached highs in the summer of 2011. Since we have been watching it carefully, we have seen in close in August 2011 at $15.88, in December 2011 it had dropped to $7.39 and by mid-May 18 it was down to $5.70 with a market cap of $464 million. It closed Sept. 25 at $4.47, up 7 cents for the day. Its market cap is now $316 million.

China-based Yingli Green Energy Holding Co. (NYSE: YGE, http://www.yinglisolar.com/) makes photovoltaic products including cells, modules and systems. YGE closed in mid-May 18 at $2.52. It closed Sept. 25 at $1.74, up 5 cents for the day. Its market cap is now $272 million.

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