The solar world is all abuzz this morning with news that billionaire Warren Buffett is taking a big bet on solar energy with his decision to buy a $2 billion solar power plant in California, a 550-megawatt project called Topaz, and what it might mean for the embattled sector. (English article) What it says is that under current conditions, which include healthy government incentives, this kind of investment will yield solid enough returns to satisfy someone like Buffett, who known to carefully analyze all of his investments before plunking down his shareholders’ dollars. That decision should prove encouraging to other potential investors in and builders of solar energy farms, and theoretically could provide huge new demand for solar panel makers who would supply those projects. The main problem, of course, is that this particular project is in the United States, where last week a trade panel made a preliminary ruling that China unfairly subsidies its solar panel makers — a decision that could result in big punitive tariffs for Chinese firms like Suntech (NYSE: STP), Trina (NYSE: TSL) and Yingli (NYSE: YGE), which collectively supply over half of the world’s solar panels. (English article) That uncertainty was apparent in shareholder reaction to Buffett’s move, with Trina shares unchanged in Wednesday trade, while Yingli was up slightly and Suntech gained a healthy 6 percent. Beijing has lobbied strongly against the punitive tariffs, and considering the importance both Beijing and Washington place on developing alternate energy, I’m fairly confident they will find a solution that will avert a prolonged solar trade war. That said, this latest Buffett investment looks like good news all around for solar cell makers in the longer term, though they could suffer in the shorter term when the US issues punitive tariffs, which looks almost inevitable.
Bottom line: Warren Buffett’s new investment in solar energy bodes well for panel makers in the long term, but they will still suffer short-term when the US issues punitive tariffs in a trade dispute with Beijing.
Related postings 相关文章:
◙ China Retaliates With Own US Solar Probe 中国启动对美可再生能源补贴调查
◙ Solar Slips Squarely Into the Red 太阳能行业陷入全线亏损
◙ Beijing, Yingli Send Mixed Solar Signals 英利和中国政府似乎“背道而驰”
A leaked memo from China Mobile (HKEx: 941; NYSE: CHL), if it’s true, is providing an embarrassing look at the spectacular failure of the company’s sputtering 3G service. According to the memo, the country’s dominant mobile carrier now has a paltry 3.5 million data card users, representing a tiny portion of its 640 million total users, even though data services are supposed to be a key future growth driver. (
Chinese Web firms continue to come under attack as they stare at a Web bubble that is showing early signs of bursting, with listed companies fending off assaults from short sellers and others struggling to retain employees amid the latest rumors of cash crunches and layoffs. The latest trio to face such assaults include web security software firm Qihoo 360 (NYSE: QIHU), leading clothing retailer and IPO candidate Vancl, and struggling social networking services site Renren (NYSE: RENN), which are all putting out various fires in their ranks. Qihoo, after coming under attack from a small research house called Citron last month (
It seems that while I’ve been talking for months about the huge potential for video program makers due to demand from online video sites, a steady stream of just such companies have been making low-key IPOs in China. Truth be told, most of these companies look like very regional players connected to larger state-owned groups, but nonetheless they could still provide an interesting investment proposition for those with access to China’s stock markets. In the latest of such offerings, a company called Jishi Media, based in northeastern Jilin province, is getting ready to apply for a domestic listing, Chinese media are reporting. (
Financing for Chinese web firms may have slowed as the country’s Internet bubble starts to burst, but a couple of major new deals show it certainly hasn’t stopped, with investors simply becoming more selective about who they support. The latest deals have seen Internet heavyweight Tencent (HKEx: 700) raise a hefty $600 million in its first US dollar bond offering, while leading clothing retailer Vancl has reportedly raised $230 million in new venture funding. Let’s look at the Tencent deal first, whose $600 million was at the lower end of its original plan to raise anywhere from $500 million to $1 billion. (
The never-ending saga of a plan by 2 obscure Chinese firms to rescue dying Swedish automaker Saab has taken an interesting twist, with foreign media reporting that one of the Chinese partners has dropped out of the rescue group and been replaced by banking heavyweight Bank of China (HKEx: 3988; Shanghai: 601988). Under the original plan that stood little or no chance of success (
The days when China’s big state-owned energy firms could do whatever they wanted without regard for the environment may be in the past, as reflected by a new setback for Sinopec (HKEx: 386; NYSE: SNP), China’s top oil refiner. China’s environmental protection agency, exercising its newfound authority following a new call to protect the environment, has officially ordered Sinopec to halt work on a 2 billion yuan pipeline it was building in the southern city of Zhanjiang, citing lack of a sufficient environmental protection plan. (
A Hong Kong manufacturer called Sitoy Group is trying to position itself as a play on China’s booming market for luxury goods, making handbags for an all-star line-up of big names like Coach and Prada (HKEx: 1913). But anyone wanting to buy into this company, which is revving up for a Hong Kong IPO expected to raise nearly $100 million (
