So it goes: oil and gas prices have fallen off, which means that interest in alternative energy has declined in kind. Solar exchange traded funds (ETFs) are down significantly for the year, but will it always be so?
Last week, SunPower (NASDAQ: SPWRA) gained 22% on decent first-quarter profits, which helped propel Claymore/MAC Global Solar (NYSEArca: TAN) 8% higher, reports Don Dion of the Street. SPWRA was able to do this even though it only accounts for 3.6% of TAN’s net assets.
Tomorrow, SunTech Power (NYSE: STP), which is 5.1% of TAN’s holdings, will announce earnings and may also be capable of affecting TAN’s short-term fortunes more than its share.