General Electric Company (NYSE GE) plans to ramp up its solar power division. GE already has a foot in the market, but up to this point it has produced only $200 million in sales.

GE made a minor acquisition in the solar field with the purchase of Astropower, and it acquired a stake in PrimeStar Solar. Now GE is taking a long-term view of the energy market and sees it as a multi-billion dollar industry. Jeff Immelt, GE's chief executive officer, told the Financial Times that energy was "clearly one of the big industrial businesses filled with what I would call seismic change, whether it's clean energy or scarcity of resources."

Trina Solar (NYSE: TSL), a maker of solar photovoltaic products and a colleague of Suntech Power Holdings (NYSE: STP), issued second-quarter results on Monday after the market closed. According to Reuters, Trina Solar beat market expectations.

Revenues decreased over 26% year-over-year (according to the actual press release, revenues increased over 13% on a sequential basis). Net income was 71 cents per American depositary share (ADS). Analysts were betting on 37 cents per ADS being the likely profit figure.

I'm indecisive about Applied Materials (NASDAQ: AMAT). The semiconductor company, which also works with solar photovoltaic cells, is starting to look like a good trade to me. However, I still shudder when I examine the numbers. What I've got to keep telling myself, I guess, is that the market is a discounting mechanism, and that now may be the time to act.

According to the press release, which was issued after the market closed on Tuesday, net sales decreased 39% in the third quarter. Adjusted earnings came in at 0 cents per share. That was obviously much less than the 17 cents per share earned one year ago. According to Reuters, which made a further adjustment for equity-based compensation, Applied Materials lost 3 cents per share. The market was expecting a loss of 8 cents per share. The top line beat projections as well.

"Maxwell Technologies (NASDAQ: MXWL) provides R&D services to the U.S. military and other government agencies; it's become the world's leading authority on ultracapacitors," says Timothy Lutts.

In The Cabot Stock of the Month report, he explains, "Ultracapacitors are handy little electronic devices that store and release electric energy more efficiently than batteries; they can be 10 times lighter than batteries and store and distribute energy 10 times more effciently than batteries."

"So what are ultracapacitors good for? Today, Maxwell-the primary American ultracapacitor manufacturer-is focusing its efforts on two fast-growing young industries: wind turbines and hybrid/electric vehicles.

"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.

The venture capital (VC) industry demonstrated its commitment to the clean technology space in the second quarter of 2009, pumping $1.2 billion into the sector, according to a report by GTM Research. VC investments in cleantech are up 43.5% from the first quarter of the year, when $836 was put into play in the cleantech space.

The number of transactions increased, as well. In the first quarter, 59 deals were completed, and deal-flow surged 44% to 85 in the quarter just finished. Average deal size remained fairly consistent: $14.2 million for the first quarter and $14.1 for the second.

Wells Fargo & Company (NYSE: WFC) and solar technology company SunPower Corporation (NASDAQ: SPWRA) teamed up today with an agreement for Wells to finance up to $100 million in new solar energy systems. SunPower will create agreements with end power users and handle operational issues, and Wells will finance and retain ownership of the systems, according to a pair of press releases from the two companies.

The Business Insider says that a research note from FBR Capital says this amount will allow SunPower to add about 20-25 MW of capacity, and that pricing for the solar power will be at competitive rates of under $0.15/kwh. The overall effect on earnings is expected to be immaterial. The average estimate for EPS for the 2009 fiscal year is $1.07, but with a wide range of $0.03 to $1.48. EPS last year was $2.28.

We're still in the early stages of this trend, but it's pretty clear that the green energy sector is fast becoming a venture capital darling. Today, for example, five deals were announced in one publication alone (three VC, two acquisitions). The three investments account for $47.4 million in VC investment. And only yesterday, Solazyme picked up another $57 million in its Series C round.

In what remains a capital-constrained market, the cash is still flowing. In the private equity space, investments in clean technologies have remained steady from 2007 to 2008, despite broader economic calamity. Such commitment this early in the game may hint at what the next bubble will be.

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.

"President Obama has stated that he's been studying Roosevelt's first 100 days and the way out of the current economic mess will look a lot like the New Deal," says David Fessler.

The advisory panelist for The Oxford Club explains, "Seventy-five years after Roosevelt's inauguration, I think we will soon see President Obama get the ball rolling on his version of the New Deal, focused on two very specific areas: energy and infrastructure." Here, he looks at stocks poised to benefit.

"Saving energy will be one of his first initiatives. It's what will give us the quickest bang for our buck. Better insulation in homes, programmable thermostats, fluorescent bulbs, more fuel-efficient cars, energy management systems for use in larger-scale commercial buildings and beefed-up public transportation are just a few of the ways to save energy.

"The government will likely offer attractive tax incentives to rally support. So who stands to prosper from such initiatives?

"Big blue-chip companies, like Owens Corning (NYSE: OC), maker of insulated glass and building insulation; General Electric (NYSE: GE), manufacturer of wind turbines, energy control and infrastructure products; and Johnson Controls Inc. (NYSE: JCI), maker of energy management systems (for buildings and vehicles) and hybrid vehicle batteries.

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.

Energy producers may soon notice the decided shift in the wind in Washington, political and otherwise.

After consulting with Congressional Democrats, President-elect Barack Obama moved quickly to double his proposed tax credit for renewable energy in his fiscal stimulus package to $20 billion. The Obama Administration's overall fiscal stimulus package is expected to total about $700-$850 billion.

New 'sheriff' in town

Economist Peter Dawson told BloggingStocks said Obama's energy discussions with Democrats on Capitol Hill display both Washington savvy and a decidedly new energy tone inside the corridors of power.

"First, Obama, so far, is making good on his 'all ideas considered' philosophy. Congressional Dems wanted a renewable energy tax credit program that will help speed the development of solar and wind power, and $20 billion in 2009 will further that goal. So Obama's collaborative decision making process is being deployed," Dawson said

The U.S. housing sector remains in deep recession. Consumer spending is down. Business investment remains lackluster, with industrial production indicators hitting new lows monthly. And lay-offs have hit alarming levels.

Against this backdrop it's understandable if one holds a not-so-optimistic view regarding the U.S. economy and the markets for early 2009: the economy's fundamentals are weak, and it's going to take a lot of stimulus, fiscal and otherwise, to turn them around.

Nevertheless, there are bright spots -- in this case literally, as well as macroeconomically -- regarding the U.S. economy of tomorrow.

This way to the future

One small, but significant data point: despite the plunge in oil prices to around $50 per barrel, demand for solar energy and solar panels remains strong. Demand for solar energy systems increased 45% in 2007 and is expected to register another impressive gain in 2008, The New York Times reported.

About 25,000-35,000 workers -- installers, manufacturers, distributors, project developers, and material suppliers -- are currently directly employed in the solar energy sector, which is expected to grow to more than 110,000 in 2016, according to Solar Energy Institute Association data, The Times reported.

And here's an equally important stat: the jobs pay between $15-30 per hour, with many solar companies offering health benefits, The Times reported.