Gambling with Solar

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Gambling with Solar By Brianna Panzica | Sunday, October 14th, 2012 It's no secret the domestic solar industry is struggling. Earlier this year U.S. company Abound Solar filed for bankruptcy after receiving a Department of Energy loan under the same program as two other companies that went belly-up, including Solyndra. All kinds of circumstances surrounded the bankruptcy... A criminal investigation is ongoing to see if the DOE had knowledge of problems with Abound's panels before the loan was distributed. But what most people will focus on as the main cause of solar disruption isn't this particular example of failed solar subsidies... Abound went under pointing a finger at Chinese competition. Advertisement “The Cobalt Crisis of 1977 was nothing. The 2012 crisis in Rare Earths will destroy us!” In 1977, the price of cobalt soared more than 1,000%... But in just two years, the price of these two rare earth metals could climb 5,377%!   Now meet the only company that holds nearly every ounce in North America: Click here. Eliminating the Competition Abound is not a unique situation; many failed solar firms have raised a white flag to China. And companies that haven't filed for bankruptcy (yet) are struggling... Cheap panels are hurting panel makers; even cheaper panels from China have made things worse. This week the U.S. Commerce Department decided after a year-long investigation to uphold tariffs between 18% and 250% on Chinese solar panel makers that are receiving "unfair" subsidies and selling panels below market price. Some of the larger companies will be paying tariffs of around 30%; others will have to pay upwards of 200%. And yet these tariffs still might not be able to provide a life ring for domestic manufacturers... Prices are still low. Companies that were feeling the pain from these low prices before won't get relief simply because Chinese companies are out of the mix. As Nick Hodge explained earlier this week, failing companies are a sign of a maturing industry. The strong survive, while the weak are phased out. Installations have gone up in the last few years, and they will continue to do so — regardless of tariffs on China's solar sector. Advertisement Profit from the Greatest Markup in History Over the next ten years, up to 500 trillion cubic feet of natural gas will flow from Canadian shores to an energy-starved China for a record profit. The deal — agreed to in November — hands one small group of companies (and smart shareholders) payments four times larger than what any domestic energy company could ever get away with charging. The full story — and details about how you could take advantage of it today — are all right here in your free report. Preparing for a Bubble Japan has been struggling to come up with a new energy mix ever since the Fukushima disaster caused it to reevaluate its nuclear program... A new feed-in tariff offers major support to renewables. This week Japan's Ministry of Economy, Trade and Industry revealed that of the 1,780 megawatts in renewable projects it had recently approved, 83% were solar. That being said, I'll remind you of Jeff Siegel's warning earlier this week: Sure, over the next two to three years, solar momentum in Japan will be strong. But I agree with Sumitomo management in that Japan's aggressive solar moves look eerily similar to those moves of previous bubbles in the solar space. So if you're looking to hitch a ride on Japan's solar push, I'd suggest you ride that wave now — and get out early — just to avoid getting sideswiped by a potential solar bubble. So, how do we identify the companies that will make it in this turbulent industry? How do we know which ones will survive a Japanese solar bubble burst? Which firms will muddle through, despite cheap solar panels in the U.S.? The same rules apply with solar as any other industry: The companies that evolve will be the ones to survive — and prosper. Simply put, this means adopting to changes in technology. As panels become more efficient, the companies that obtain and utilize — or develop — this technology will surge, while those that drag their feet will eventually drop off. This company is way ahead of the game. It will provide all the major solar panel manufacturers with the most efficient, lowest-cost panels available... And while Wall Street waits around to see which panel companies turn their luck around, you have the opportunity to get in right at the source: This little-known solar tech company is all you need. Good investing, Brianna Panzica for Energy and Capital Investing in the Bakken: 3 Stocks Under $10 These natural gas stocks have yet to break out — but once they do, they could offer huge gains... Gold Forecast 2013: Gold Rerated as a Zero-Risk Asset The last time gold broke out of its consolidation pattern, in 2008, it went from $850 to $1,200 — a 40% gain. Given the similar chart pattern, I estimate gold will hit $2,403 by the third quarter of 2013... Japan Solar Investing Opportunities: Feasting on the Remains of Solar Solar advocates are cheering, but many of the renewable energy analysts I know agree that if Japan isn't careful, it could be setting itself up for a very dangerous solar bubble scenario. Canadian Gold Miners Come in from the Cold: Miners on a Tear as Gold Surges Precious metals miners always have a tough job, but the last year has been brutal... Now that the Fed and ECB are printing unlimited amounts of money, all of that is about to change. Offshore Oil Investing: Preparing for the Offshore Rally Keith Kohl tells investors about the media-vilified oil sector that is ready to rally. Utica Shale Opportunities: USGS Confirms this Billion Barrel Oil Play Editor Keith Kohl highlights the latest USGS assessment on an emerging U.S. shale play. France Surrenders: Socialist Austerity and Other Oddities The French president aims to reduce the debt by raising taxes to putative levels on the rich. And as we learn time and time again, if you punish something, you get less of it. 2013 Market Outlook: Real Assets Up, Discretionary Down The economy just passed a fork in the road, and it went both ways. We're printing money so the Fed can buy assets that no else will buy to keep the stock market going up and interest rates low. And it's working... for now. Solar Installation Stocks: SolarCity Files for IPO The past few years have seen more than a few solar bankruptcies. Solyndra is the most infamous one, closing its doors after gorging on public funds. But all these solar failures have a few things in common... and ignoring the lessons they teach can cost you big bucks in the energy game. 2013 Oil Price Forecast: Bad News: Oil is Going Higher One has to wonder how, when oil production in the United States is booming, we are still paying over $3.50 per gallon for gasoline... I liked this article | I did not like this article Follow Energy and Capital on The Bottom Line Related Articles Solar Competes with Natural Gas Solar Job and Production Cuts Solar Investing Recently... Bad News: Oil is Going Higher SolarCity Files for IPO USGS Confirms this Billion Barrel Oil Play Feasting on the Remains of Solar Energy and Capital's Weekend Edition

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