Major Deals Fire Up Alternative Energy ETFs

By | July 9, 2007

Major Deals Fire Up Alternative Energy ETFs

Investor’s Business Daily
Major Deals Fire Up Alternative Energy ETFs
Monday July 9, 7:00 pm ET
Trang Ho

Green ETFs glowed Monday thanks to solar-energy companies that reported major deals that heated up shares.Market Vectors Global Alternative Energy (NYSE:GEXNews) gapped up 1.20 to 46.50 on 21/2 times usual volume.

It tracks the Ardour Global Index, which holds 30 stocks. Half of fund is concentrated in mid caps, while 21% is in large caps and 29% in small caps. U.S. names make up 39% of assets. The rest of the portfolio is heavily weighted with names from Germany at 15%, followed by Denmark 12%, Norway 9%, Spain 7% and Austria 6%.


PowerShares WilderHill Clean Energy (AMEX:PBWNews) rose 0.91 to 22.46 on above ordinary volume. It holds 45 stocks, many of which overlap with the broader PowerShares Global Clean Energy (AMEX:PBDNews).

PBD gapped up .90 to 27.90. It holds 89 U.S. and foreign companies that make renewable energy and technologies that help make cleaner energy.

Both funds offer global exposure. The primary difference is that PBW holds only U.S.-listed names, while PBD holds names that are purchased locally.

Their holdings also overlap some with PowerShares Cleantech Portfolio (AMEX:PZDNews). It climbed 0.76 to 31.95 on nearly triple typical turnover.

The 47-stock PZD holds firms that provide “a knowledge-based product or service that improves operation, performance, productivity or efficiency, while reducing costs, inputs, energy consumption, waste or pollution.”

Much of the action in these ETFs came from surges in First Solar (NasdaqGM:FSLRNews), JA Solar Holdings (NasdaqGM:JASONews), Trina Solar (NYSE:TSLNews) and Yingli Green Energy (NYSE:YGENews), which all spiked 15% or more.

New Contracts

Phoenix-based First Solar gapped up 23.06, a whopping 24%, to 119.35. Volume more than quadrupled to its highest level since its November IPO.

The maker of thin-film solar panels said it signed five deals worth $1.28 billion in sales over the next five years. It also said it plans to spend $150 million to build a new production plant in Malaysia. That’s projected to be up in 2009.

Sales grew from 146% to 392% year over year the past four quarters. Earnings zoomed 188% to 220% the past three quarters. It beat analysts’ profit estimates by 100% and 271% the past two quarters.

China-based Trina Solar vaulted 9.29, or 16%, to 67.37 on more than double average volume.

It signed four deals with three Italian firms and a German one to build 99 megawatts of solar photovoltaic modules over the next two to three years. The values of the contracts were not disclosed.

Trina Solar shipped 27.4 megawatts of solar modules last year. Earnings blasted between 73% and a staggering 700% over the past four quarters. Sales exploded 144% to 490% over those periods.

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