Let me take you back to October 2008, at that time Oil Prices wend down dramatically and everyone were bashing the Solar Panels companies… If you just watched the video, Jim Cramer was right most of it regarding the stock prices of the Solar Panels companies, but Oil prices came back almost to the same levels and Solar Cells (not Solar Panels) went down… Now – Electricity bills are rising up again and there are no expectation in the market for Oil prices to go down – This is a game changer, where You could build your own Homemade DIY Solar Panels (using cheap Solar Cells) and reduce your electric bill dramatically.
Here is a transcript of the video, Just read between the lines and make your own decision:
Hi you’re watching Wall Street Confidential. I am talking with Jim Cramer. Jim, this morning Goldman stats downgraded some solar names.
What gives? (Deborah)
Well first of all, I’m sure that the initial reaction will be the people ‘oh well, thanks a lot, the stocks are already down. You know I hear that all the time. That’s nonsense. As long as the fundamentals are good, you continue to recommend regardless of what the stock does.
Solar Panels Prices Going Down
If the fundamentals turn down, you change your mind. This is what I learned at Goldman. It’s what I use all the time and my thinking, people say, ‘Well Jim, you know you loved it here…’
Well if the fundamentals deteriorated, it’s different. The fundamentals are deteriorating solar because the subsidies are coming off and it’s the price of oil Goldman’s made a very big call sign, oil’s not going up anymore, it’s going down and the average selling price of solar has to come down without the umbrella of the government subsidies.
So why should you, if your estimates are dramatically below the rest of the street stick with these stocks? And I want to emphasize the people. There are far too many pot shotters out there who don’t recognize that the fundamentals have changed dramatically in this country in the last 6 weeks including the idea – and not just this country but including the idea that maybe Germany will not subsidize solar because Germany just bought Hypo – whatever the heck that was!
Solar Panels are too Expensive
“And the thing with solar is it’s so expensive to put panels on your house (truly) and if we may pull back on these subsidies, and we’re going to have an over abundance of panels because the companies have been making panels faster than the normal flow of subsidies.”
Right! And you know, look, at first solar was at 50 about a year and a half ago and it went up to 250 and I know I liked it all the way but as soon as the fundamentals and oil went down, I said sell Solar, it has been my strategy now.
I said if you have to hold one, you can offer Solar but I’ve been saying sell solar, sell casino, sell farm! I’ve been saying that because Self Solar because got expensive and the average selling prices are going down; sell casino because no one’s going; and sell farm because oil.
And you know I just do not understand how people could say, ‘look at this call’ and say, ‘they’re late.’ I think the call should be ‘there, you just sell it.’ (Jim Cramer)
“Ok so Goldman sacks the –“ (Deborah)
“They did the right thing!
Absolutely” (Jim Cramer)
“Good call on them. Thank you, Jim. Deborah here on Wall Street Confidential. Stay tuned for more here on Wall Street.com TV.” (Deborah)