For any of you who has been following the solar IPO’s of late, you’ll find that while solar investors are able to cash out with substantial multiples on their initial investments, those who buy post-IPO are now finding that a certain plateau has been reached.
I suspect that investors do not want a repeat of the dot.bomb era where everything in sight was bought up and then some, only to have a huge crash. It is probably quite prudent of the investment community to be more careful this time as solar energy seems to be the new industry to invest in.
Many solar companies are finally profitable and that in itself is a positive sign for a maturing industry. However there remain the solar supply challenges which are reaping havoc on prices across the board, thereby putting margin squeeze on everyone in the supply chain. We all expect that continued growth in demand will continue to put such pressures for a good two years. And none of this counts in further governmental programs and initiatives worldwide to increase the use of renewable energy. Seems like every day there is another announcement of some government supporting solar energy technologies.
So if you feel that the IPO-craze has had the balloon sucked out of it, my suspicion is that while you won’t see wild increases, you will still see a generally positive trend in the months to come…
Sass