Tue, Jul 10th 2007 6:43am
As we noted last week, one of the hottest sectors on Wall Street these days is the solar energy business. Chinese solar power companies alone have raked in over $1.1 billion so far this year through IPOs. It's starting to look like investors are going a bit crazy over these companies, as solar shares rallied hard across the board, following a few deal announcements. It's common for customer win announcements to be catalysts for an upward stock move, but there's something a bit disturbing about the way that so many solar companies moved sharply higher yesterday. Basically, what it means is that investors are being indiscriminate about what they're buying. This, more than the spate of IPOs, is a worrisome sign, since it looks a lot like a buying panic, the type commonly seen near the top of bubbles. One day's action doesn't make a bubble, but if you see more of these days, where every company in a sector moves in perfect concert, then it should be seen as a warning sign.
If you liked this post, you may also be interested in...
- Chinese Company Learns From The West: Builds Up Big Patent Portfolio, Uses It To Sue Apple In China
- Starting From Next Year, China Wants Music Services To Vet Every Song Before It Goes Online
- DailyDirt: Dealing With Zero (Or Negative) Population Growth
- Lego Tells Political Artist To Hit The Bricks, Refusing To Sell Him Legos
- China's Ministry Of Culture Joins Social Media, Immediately Inundated With 100,000 Hostile Comments