« Market For Cellulose Ethanol Competitive Business Bundle | Home | Market Crash: Opportunities For Those With Strong Stomachs »
Out Of The Gate: Renewable Energy Falls
By Mr Ethanol | January 22, 2008
Houston Chronicle:
The Federal Reserve’s dramatic move to slash a key interest rate by three-quarters of a percentage point on Tuesday was not enough to support renewable-energy stocks, which fell across the board.
The Fed reduced its federal funds rate to 3.5% from 4.25% in the face of global fears of a recession. Oil prices also fell sharply, helping to send stocks across the solar and ethanol sectors lower.
Though the price of oil and solar stocks are not directly linked, market psychology sometimes leads investors to sell off renewable shares when oil prices fall, because cheaper fossil fuels are more economically viable.
Light, sweet crude for February delivery on the New York Mercantile Exchange fell $2.77 to $87.80 a barrel in electronic trading by the afternoon in Europe. Earlier Tuesday, the contract traded as low as $86.11.
China Sunergy Co. led the solar-power sell-off, posting a decline of $2.10, or 21.6 percent, to $7.62. Solarfun Power Holdings Co. fell $3.75, or 19.7%, to $15.25. Akeena Solar Inc. fell $1.32, or 17.8%, to $6.08. Canadian Solar Inc. fell $2.70, or 15.2%, to $15.10.
Among the sharpest drops in the ethanol sector were Pacific Ethanol Inc., which fell 59 cents, or 10.8 percent, to $4.87. Verenium Corp. dropped 27 cents, or 7.2 percent, to $3.46. BioFuel Energy Corp. fell 54 cents, or 8.5 percent, to $5.85.
SunTrust Robinson Humphrey analyst Keith Lerner noted that it was difficult to cite “a specific reason” for many of the declines across the global markets. But overall, “lingering concerns about a U.S. recession, its potential spillover to the rest of the world, and a general lack of investor confidence seem to be the main drivers of the global swoon.”
Topics: Biofuel, Market, Negatives, News |
Related Posts
- Ethanol Benefiting Farmers
- Ethanol Plant Explosion In Little Falls
- Tequila Falls Victim To Ethanol?
- Herseth Sandlin Determined To Expand Ethanol Market
- Renewable Energy Industry Says The Future Looks Bright
- Politicians Love Ethanol Despite Doubters
- Renewables A Good Bet, Minus Ethanol - Fund Mgr
- Indy Cars Rejecting Homegrown Ethanol In Favor Of Brazilian Fuel
- Is The Bio-fuels Industry Ready To Cut The Government Apron Strings?
- Xethanol Refines Strategy To Focus On Renewable Energy And Clean Technology
New Way Of Making Easy Money Online