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Report: Investors Sustain Faith despite Europe's Poor Show in Solar Sector

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March 29, 2011

Report: Investors Sustain Faith despite Europe's Poor Show in Solar Sector

By Mini Swamy
TMCnet Contributor

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The Bedford Report acts as an independent research portal that releases regular market updates on the Alternative energy Industry and has provided research reports on SatCon (News - Alert) Technology Corporation and Power One Inc., both manufacturers of inverters for solar power systems.


It looks as if organizations are not the only ones who worry about 'going green', for another set of individuals have a greater financial stake in the green technology sector. On seeing that all wind currents are blowing towards alternative and renewable energies, investors don't want to lose out on this golden opportunity.

According to the Bedford reports, solar stocks, especially in European nations such as Germany and Italy have been in a relative tailspin that was triggered by a decline in government subsidy support. However, investors don't think that this will seriously impact their investments as they are convinced that smaller solar markets like the U.S. will help offset declines in consumption from the key European markets. Another positive factor is that Power One hasn't confined itself to manufacturing only solar inverters. It manufactures wind inverters that convert the DC current from Wind farms into AC current for households and commercial use.

Healthy trends in Power One's renewable energy sector seemed to justify the investors faith in the company. The year 2010 proved to be rather lucrative for Power One as Q4 revenues jumped 157 percent to $366 million with renewable energy inverters accounting for 72 percent of the revenue for that quarter and 68 percent for the whole of 2010.

Although SatCon shares fell significantly, signifying a Q4 2010 $3.2 million, or 3 cents per share, it still compared favorably with the $7.5 million or 11 cents per share in Q4 2009. President and CEO Steve Rhoades said that the company's gross margins were at the lower end of its expected range because of supply chain issues that caused its costs to rise.

In a related news release, The Bedford Report has showed that solar sector has dropped down very much after its rise in the summer. The solar segment has gone down further after the European nations, France and Germany decreased the government subsidy for solar.


Mini Swamy is a contributing editor for TMCnet. To read more of her articles, please visit her columnist page.

Edited by Juliana Kenny

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