"The way to win in solar is to invest in the industry leaders and SunTech Power Holdings Ltd. (NYSE: STP) is a big as they come," says growth expert Toby Smith in his ChangeWave Investing.

"China will surpass the US as the world's largest market for wind turbines -- after doubling wind power capacity in each of the last four years.

"Chinese government mandates for cleaner energy are a big factor driving the blossoming wind and solar projects, but other forces are at work, too. Chinese power companies are loaded with cash and state-owned banks are eager to lend them more money.

Today felt like one of those slow long pre-holiday trading days where many gainers and losers were seen with low volume. There was no real economic data to absorb and no real earnings reports to pick apart.

That let us only react to a small recovery from the fears that the US could ultimately have the same credit rating fears that were brought up about England yesterday. Here were today's unofficial closing bell levels:

Dow 8,278.04 -14.09 (-0.17%)
S&P 500 887.33 -1.00 (-0.11%)
Nasdaq 1,693.91 -1.34 (-0.08%)

Top Analyst Upgrades & Downgrades

Today was a day marked by selling, partly on economic news and partly on a call from S&P. S&P put the credit bias of the United Kingdom at "negative" from "stable" giving the notion that the nation's Triple-A ranking is possibly at risk to be cut. Then came the implications from Bill Gross and others that the U.S. could ultimately see the same fate. To show how bad the trend and bias was, long-dated Treasuries saw their yields rise as much as 15 basis points today.

A slightly less-bad jobs report failed to catch any attention today. In short, if you are a market bear you are getting more feathers in your cap now that earnings are basically finished. Here are today's unofficial closing bell levels:

Dow 8,291.82 -130.22 (-1.55%)
S&P 500 888.23 -15.24 (-1.69%)
Nasdaq 1,695.25 -32.59 (-1.89%)

Top Analyst Calls

Using photovoltaic arrays made of polysilicon isn't the only, or even the most efficient, way to turn the power of the sun into electricity. A rising form of heliocentric electrical generation is called Concentrated Solar Power (CSP).

The basic concept is simple. Use mirrors to focus heat from the Sun's rays on a small area that contains water or some other liquid. The heat is transferred to the liquid, which then turns a generator and creates electricity. Sort of like cooking a hot dog over one of those backyard solar oven kits but writ very, very large.

Shares of First Solar (NASDAQ: FSLR) have been pummeled this week, as analysts, starting with Citigroup (NYSE: C), downgrade the stock.

Previously, the stock had enjoyed high ratings, generally in the Buy or Accumulate range. With Citi leading the way, other analysts have followed suit with rating reductions.

Citi cited concerns regarding the amount of solar panel inventory waiting to be absorbed, along with worries about future demand.

By some estimates, only 10% of the solar panels in inventory at the end of the year will be taken up by the anticipated increased demand generated from the adoption of the Obama energy proposals. An additional 20% reduction of inventories is projected to result in 2010.

The market is not distinguishing among the companies in the solar panel manufacturing business. Regardless of the strength of an individual manufacturer, all are being treated with the same lack of enthusiasm by analysts and investors. A closer look at First Solar suggests that this should not be the case.

First Solar is a leading designer and manufacturer of solar modules using thin-film semiconductor technology, which converts sunlight to electricity. Based in Phoenix, Ariz., First Solar has long-term supply contracts with 12 European project developers and systems integrators.

The solar module industry has come into recent criticism for its impact on the environment. Concerns are being raised that the eventual disposal of solar panels will result in the emission of large amounts of greenhouse gasses as the semiconductors disintegrate.

First Solar, however, has established a model for extended producer responsibility, which creates an obligation of the producer to have policies and practice to ensure that the company takes responsibility for environmental consequences from cradle to grave. The company provides the purchaser of its products with a guarantee to take back all its panels at the end of their useful life.

First Solar has received acclaim for building concern for environmental impact into all phases of the manufacturing and recycling of its products.

FSLR stock is trading around $142 per share. Shares had rallied last week to $165 per share on the heels of President-elect Obama's energy proposals. The stock had increased in price by 76% from its 52-week low, and was approaching its 12-month target price of $167.70.

The sell-off of FSLR has been greatly overdone. The company's balance sheet is strong, with a long-term debt-to-equity ratio of 0.10 and a current ratio of 3.23. The 21.84% on equity should also be of comfort to investors.

An additional plus for FSLR is the likelihood of a push to solar energy as part of the job stimulus program of the new administration.

Louis Navellier's PortfolioGrader Pro, which rates Wall Street stocks, rates FSLR a B or Buy.

Jamie Dlugosch is a contributor to NavellierGrowth.com.

Over 32 years, the portfolio in The Oberweis Report has returned an average gain of 21.2% a year vs. 7.9% for the S&P 500. Here, money manager and newsletter advisor Jim Oberweis, Jr. looks at Suntech Power Holdings Ltd. (NYSE: STP).

"Long-term results notwithstanding, 2008 has been humbling, to say the least. No other year in our history has been as challenging.

"But in our experience, the most favorable buying opportunities tend to fall after a period in which the market has not performed well.

"Although year-by-year results can be volatile, disciplined investors who remain fully invested in a portfolio of high-growth equities selected using our methodology have historically achieved an exceptional average rate of return over long periods of time.

"Suntech Power Holdings Co., Ltd is one of the leading solar energy companies in the world as measured by production output of photovoltaic, or PV, cells, with leading positions in key solar markets such as Germany and Spain.

Analyst Michael Molnar of Goldman Sachs took a harsh tone on the solar sector today, slashing his opinion to Sell on both First Solar, Inc. (NASDAQ: FSLR) and SunPower Corp. (NASDAQ: SPWRA). Specifically, First Solar was slashed to Conviction Sell from Buy, while SunPower was dropped from Buy to Sell. In a note to clients, Molnar explained, "We strongly believe that SunPower and First Solar are two of the best solar companies in the world and that both will be part of the growing solar industry for years to come. However, in our view, even these companies will face headwinds in a market that is oversupplied with modules."

Specifically, "the risk of oversupply in the solar market will soon become a reality as considerably less generous demand subsidies take hold just as a wave of supply and tight financing hit the market," said Molnar. He added, "We believe that liberal subsidies of the past in markets like Germany and Spain are unlikely to be replicated in the future, given fears of their ultimate cost in a bad world economy."

As a whole, Goldman maintains a "cautious" view of the solar sector -- and the brokerage firm isn't alone. Piper Jaffray also weighed in on solar firms today, with a warning that higher credit costs could reduce average selling prices by an additional 6%. "The renewables industry depends on access to credit, and for the moment, the credit market remains closed," Piper stated. "We believe the cost of capital on renewable projects will increase due to higher bank financed interest rates, larger spreads, and more upfront fees." For 2009, Piper Jaffray predicts that companies' average selling prices will fall by 15% to 21%.

This post is part of a series in which TheStockAdvisors.com asked financial experts to name their top stock pick if McCain or if Obama wins the election.

"An Obama administration is likely to be very aggressive in subsidizing and promoting alternatives, including a windfall tax on oil firms to support development of alternative energy; SunPower Corp. (NASDAQ: SPWR) is our pick to play an Obama victory," says Elliott Gue in The Energy Strategist.

"Obama's energy plan calls for generating 10% of electricity from renewable sources by 2012 and 25% by 2025, an aggressive goal when you consider that less than 3% of America's power comes from non-hydropower renewables today.

"Obama has also proposed a windfall tax on oil companies that would be used to support the development of alternatives like solar and wind power.

"SunPower manufactures and sells photovoltaic (PV) solar panels for the residential, commercial and utility-scale markets.

"Residential and commercial solar systems are solar panels installed on the roofs of homes and businesses, designed to supplement power supply from the electric grid.

"And SunPower recently won a contract with Florida-based utility FPL to build the largest photovoltaic plant in North America, a 25 megawatt utility-scale plant in DeSoto County, Florida.

"There's no 'silver bullet' solution to the energy crisis; but there are some solutions that do work," says Sean Broderick, referring to wind and solar power.

In The Safe Money Report he says, "There are with some choice ETF to power your own bottom line." Here's a look at the two green technologies and how you can invest in these developing fields.

"Many Americans are disgusted by the fact that, faced with an energy crisis, the government seems to produce nothing but hot air. So let me give you my appraisal of two alternative energy solutions that work -- along with some choice exchange-traded funds that can power your own bottom line. Here are two energy solutions that work right now.

Solution #1: Wind Power

"Critics will point out that the wind seems to stop blowing when you want electricity most -- on hot summer days. And that is a problem. However, a study last year by Stanford University shows that wind power from interconnected farms can be used as reliable base load electric power.

Solar energy may be the wave of energy's future, but companies such as Google (NASDAQ: GOOG) and Chevron (NYSE: CVX) may best start-ups in getting to the benefits. A number of large American companies with tremendous balance sheets are pouring money into solar energy based on the fact that it is becoming more competitive with oil.

According to Bloomberg, "Costs for the technology will fall below coal as soon as 2020, the U.S. government estimates. JPMorgan Chase & Co. and Wells Fargo & Co. invested last year in the biggest solar plant built in a generation; Chevron and Google are funding research; and Goldman Sachs is seeking land to lease as demand out-paces wind turbines and geothermal."

Given the potential size of the bonanza, the investments should not be surprising, but they could squeeze smaller solar energy companies out of the market. Firms like JA Solar (NASDAQ: JASO) and SunTech (NYSE: STP) have their entire futures bet on the success of solar energy and the fact that there are not many companies in the business, at least until now.

It has began to occur to large companies that if fossil fuels will indeed start to run low in two or three decades that the trillions of dollars in market cap currently represented in large oil company stocks will have to go somewhere.

Why not to Google?

"Oil is setting the stage for a big rally in alternative energy," says Eric Roseman, resources expert and editor of Commodity Trend Alert. Here's a look at two stocks poised to benefit from this trend.

"A surging oil price is extremely bullish for alternative energy. Over the last 12 months, as oil prices have doubled, uranium and solar energy stocks have crashed.

"These sectors have declined because sub-prime has taken everything to the basement until recently - not because solar energy or uranium are flawed investment themes.

"That's why we've recently placed new trades on Suntech Power Holdings (NYSE: STP) and Cameco (NYSE: CCJ). There's no way high oil prices won't encourage more interest in these distressed sectors.

SunPower (NASDAQ: SPWR) recently down $13.11 to $86.55:

Cowen says "SPWR again exceeded expectations and raised 2008 guidance on strong future outlook." SPWR call option volume of 39,724 contracts compared to put volume of 21,724 contracts. SPWR May option implied volatility of 74 was above its 26-week average of 68 according to Track Data, suggesting larger movement.

Options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Evergreen Solar Inc. (NASDAQ: ESLR) shares are trading higher after the company announced it has started an expansion project to double the capacity of its Devens, Mass., plant to 160 megawatts by the end of next year. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on ESLR.

After hitting a one-year high of $18.85 in December, the stock hit a one-year low of $7.52 in March. ESLR opened this morning at $11.66. So far today the stock has hit a low of $11.10 and a high of $11.97. As of 12:30, ESLR is trading at $11.27, up $0.57 (5.3%). The chart for ESLR is bearish but improving, while S&P gives the stock a bullish 4 Stars (out of 5) Buy rating.

For a bullish hedged play on this stock, I would consider a September bull-put credit spread below the $7.50 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make a 16.3% return in just five and a half months as long as ESLR is above $7.50 at September expiration. Evergreen would have to fall by more than 33% before we would start to lose money.

ESLR hasn't been below $7.50 at all in the past year and has shown support around $9 recently. This trade could be risky if the prices for oil and other energies fall off some in the coming months, but even if that happens, that position could be protected by support the stock might find just above $7.50, where it bottomed out in the past month.

Brent Archer is an options analyst and writer at Investors Observer. At publication time, Brent neither owns nor controls positions in ESLR.

What happens when a highly specialized industry begins to grow very quickly? Solar power, one of the fastest growing of alternative energy sources, relies on a system of very specific machinery to work successfully. But market growth has lagged behind demand due to a bottleneck in the manufacturing process -- in the production capacity of poly-silicon, a vital component in photovoltaic cell production.

I think the potential for a company that could help break-up that bottleneck could be really extraordinary, and that's why I'm recommending Meyer Burger (MBTN: Swiss Exchange) as one of my best picks for 2008.

Meyer Burger is a market leader in a small but incredibly important market, technology-wise -- the manufacturing of machines that contain highly precise saws for cutting silicon and other crystals for use in solar power, optics and semiconductors.

Chinese solar power manufacturer Trina Solar Limited (NYSE: TSL) is ablaze with double digit increases in net revenues, net income, operating income and the solar megawatt volume of units shipped. The company added 12 new customers in 2Q 2007 alone, and its manufacturing capacity is booked solid through the remainder of 2007. Good thing the company is in the midst of a tremendous manufacturing capacity expansion program. Currently, Trina Solar has a manufacturing capacity of 100 solar megawatts, set to increase by 50% to 150 solar megawatts by the end of 2007, and rise again to 350 solar megawatts worth of manufacturing capacity by the end of 2008. The sky really is the limit for Trina Solar.

Despite big increases in the cost of raw materials, Trina Solar's total net revenues in 2Q 2007 jumped 77% to $75.3 million, even though the average sales price dipped. Gross profit increased 49.5% to $14.2 million, and net income increased 51.4% to $7.2 million. Because Trina Solar is still in its start-up phase, operating expenses increased as did interest expense. Based on figures thus far reported in 2007, CEO Jifan Gao states FY net revenues will total $270-$200 million, and FY net income will be in the $34.5-$36.5 million range. Trina Solar has guaranteed contracts with suppliers for 90% of the necessary supply of polysilicon for 2007 orders, and 60% for 2008 orders. Trina Solar recently began dealings with various silicon reclamation companies to ensure a stable and moderately priced supply of necessary polysilicon to meet its present demand forecast.

In an odd state of affairs, most of Trina Solar's customers are in Germany, Italy, and Spain. The company does very little business in China. CEO Gao's remarks make no reference to this fact, only that climatic conditions and government policies make it easier to do business in southern European countries. Given China's unprecedented growth in demand for energy resources, one has to wonder why the Chinese government is so late coming to the solar-powered party.