News

Majority of Wall Street investors are not tempted on solar market

Solar panel technology companies had dropped values in the Wall Street this year and only few investors are buying them. There's also an oversupply of stock prices as companies raise funds to sustain alternative energy.

A news from Reuters stated three companies had crashed down index in the Wall Street lately: The MAC Global Solar Energy dropped 36% of its value since April. SunRun Inc went public a week ago at $14 and fell down at $10.12 on Thursday. And SunEdison Inc has lost 55% value since July 20.

Investment firm, Hood River Capital Management, reduces some of its stake in SunEdison and continues to sell it until last month when the solar energy company, on its third acquisition already just by this year, announced it will purchase Vivint Solar Inc .

Brian Smoluch of Hood River Capital Principal confirmed that the investors think SunEdison might be rushing things. They see that the requisites of its funds could be too high. Furthermore, the development of the project might suffer as the period assigned to it could be too little.

They perceive that even though some locations are starting to accept renewable energy, it appears that it is still costly in most places and it better be supported by the government instead.

Correspondingly, an electricity update report from the U.S. Energy Information and Administration shows that the oil price in the New York Harbor had decreased on the previous months along with the price of New York City gas and Central Appalachian coal. The analysis also illustrates that the use of fossil fuels like hydro, oil, natural gas, nuclear and coal still dominates every part of America compared to renewable energy sources.

Cited on Inc, Rennaissance Capital confirmed some solar companies that had been offered successfully in public since 2013. Two of them were Terraform Power which accumulated $500M last year and Nextra Energy Partners which acquired $400M.

Be that as it may, few are still investing. Chris Georgandellis of Exchange Capital Management said, "Attractive fundamentals are often powerless in the face of the arbitrary preferences of the crowd."

His firm invested in First Solar because they are strengthened by the conjecture that solar will be a lot cheaper and more competent in the long term as fossil fuel will become more expensive in the future.


Real Time Analytics