Lazard Maintains Solar Buys

3/24 - "Cowen & Co is out with a positive call on solar stocks, saying most of the U.S. solar names look undervalued relative to growth and earnings, in their view, reflecting four areas of investor concern: uncertainty about the next phase of subsidies in Spain, Germany and the U.S.; and the tension between silicon supply/cost and module ASP/demand. Each of these is likely to be clarified in the next two to six months, underpinning a group rally. Firm reiterates Outperform on ENER, ESLR, FSLR, HOKU, SPWR, STP, and TSL."

"Notablecalls: As you can remember, SunTech (NYSE:STP) has been Cowen's favorite Solar play lately. They have good exposure (50%+) to Europe, especially Spain, and the valuation is just so low here. I have been positive on STP around current levels and continue to be so.

I think Cowen's call is very buyable here. Would not be surprised to see STP around $35 in a week. Be early."

3/31 - "This month, Claymore and Van Eck registered solar energy ETFs. Claymore's Global Solar Energy ETF will track an index developed by Chicago-based Melvin & Company. The index will be composed of approximately 25 stocks selected "based on the relative importance of solar power within the company's business model...Van Eck's Market Vectors-Solar Energy ETF will track the Ardour Solar Energy Index. Expected to launch in April 2008, the ETF will contain approximately 25 stocks, selected depending on the companies' revenues, liquidity and market cap."

"In January's Scientific American, "A Solar Grand Plan" proposes a way for the U.S. to generate 69% of its electricity and 35% of its total energy from solar power by 2050. Noted technologist and inventor Ray Kurzweil is even more bullish, forecasting that solar will meet 100% of our energy needs in 20 years. Solar currently generates far less than 1% of our energy needs."

"The near-term outlook is a bit cloudier for solar companies. Industry fundamentals are increasingly difficult. At issue is the worldwide shortage of polysilicon, a vital ingredient in photovoltaic cells, which has hounded the industry by pushing spot prices of the material sky high. A turning point will come when capacity exceeds demand, as polysilicon makers have been ramping up production. In a recent report, Citigroup says that could happen as early as the second half of 2009..."

3/25 - "Less than a month after a successful PIPE deal raising $11 million for China Solar (CSOL.OB), the company's CFO Gary Lam is now leaving "to pursue other interests." Remember that Mr. Lam was only appointed in November 2007, and as such he has only served a total of 140 days, and really oversaw only one quarter of financial results...This doesn't bode well for the company. Continuity of financial oversight is one thing, but this calls into question the issue of fiscal integrity altogether."

"Given this, I'm anticipating surprises, and not good ones, in the company's impending 10Q."