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Hi Prof,

Yeah, I saw that. Have you seen this one, which also discusses a decline in 2011? http://www.thestreet.com/_yahoo/story/10918447/1/solar-stock... This is all I could find to explain the downdraft over the last couple of days.

The question is, what will happen after 2011? Everyone knows about the government subsidies for solar (e.g. Germany), but not many realize that oil (and probably coal) is also subsidized. And, as technology continues to improve, the need for those subsidies declines as the cost for solar and wind energy comes down (called grid parity, when it matches the cost of other sources, like coal).

Solar and wind power are here to stay and will become more important for electricity as global warming concerns continue to ramp up (putting pressure on coal for electricity). Energy needs are going up, not down, as well. That's a long-term trend. I don't think the numbers for alternative energy given earlier are unreasonable. The exact timing might slip a little, but I also wouldn't be surprised if the predictions are too low.

Plus, China is really big on getting solar and wind energy to be bigger parts of their total, and Power-One is a player there, too. Even the U.S. is getting in on the act to a bigger extent.

Yes, some short term concerns, but a long-term winner, I think.

Cheers,
Jim
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