Short selling abounds in clean techs

Today’s temporary ban on short selling of US stocks by the Securities and Exchange Commission revealed a lot of this activities going on in the clean technology sector, according to the solar technology company Evolution Solar.

“Not only have financial companies been targeted, but many alternative energy companies, and solar companies in particular, seem to have been favorite targets for this illegal and manipulative naked short selling action.”

Including themselves, the company cited companies such as Akeena Solar, Ascent Solar Technologies, Solar Fun Power Holdings, Sunrise Solar, and SunPower Corp as some that have been illegally shorted.

Evolution hopes that SEC’s new rules against short selling will curb this activity, which drove some of clean tech companies’ substantial stock price declines.

2 Responses to Short selling abounds in clean techs

  1. Joseph Chang 24 September, 2008 at 5:56 pm #

    Interesting!

    Not suprisingly, the solar stocks are in the crosshairs of short sellers. May like First Solar have had parabolic run-ups in their stock prices and have attracted the attention of the shorts.

    Shorts have also made a killing in ethanol stocks like VeraSun Energy. Check out its stock price:
    http://finance.yahoo.com/q/bc?s=VSE&t=2y&l=on&z=m&q=l&c=

    The shorts will pounce on any stocks that may have more hype than substance – not that this is necessarily the case with solar.

    Joe

  2. Pradeep 24 September, 2008 at 10:51 pm #

    I agree that the shorts have targeted ethanol and solar stocks, but do not know if this is a “manipulative, naked short selling action”. The recent rundowns in oil also have something to do with the alternative energy stocks being shorted.

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