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PWER keeps going down and down. Is this a result of the overall market, or is something negative going on with this company. I don't yet have a full allocation and I wonder if this is a good time to fill it up.

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No. of Recommendations: 4
Hi Bikerliz,

Power-One is pretty much tied to the solar energy market because roughly 70% of its business is selling those inverters. Even though solar energy is growing, in the countries where it had been growing a lot (e.g. Germany), there is concern that it won't grow as much. Europe was the leader in installing solar power and it's debt troubles are making for lower expectations going forward. That's because governments have had to subsidize solar installations, so there's worry that they'll cut back on that.

In response, Power-One has been diversifying away from Europe and into North America and Asia. It's built a new manufacturing plant in Phoenix (well, not so new anymore, almost a year old) and it expanded its plant in China. It's also been expanding its sales force around the world to be able to sell more outside of Europe.

Solar is still a relatively young industry and it has tended to be faddish. Right now, it's kind of out of favor and with European trouble, it is considered to be in trouble. However, the growth rates are actually still there, the need for Power-One's products continues to grow, and the company keeps doing well in my opinion.

For trends and more discussion of energy, you can check out BP's annual energy report at and the Global Status Report 2011 from the Renewable Energy Policy Network at

There's also IMS Research and their analysis of PV trends (which are important for inverter trends). Here's one report from last summer with some preliminary looks into 2012:

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