Author: Icon8888 | Publish date: Wed, 17 Feb 2016, 10:37 AM
When we invest in a stock, the principal reason is because we believe it can help us to make money. However, in some rare cases, it is the non financial things that attract us. In Tek Seng's case, I notice that certain forum members bought the stock not only because they like its prospects, they are also passionate about the solar energy industry. I share that sentiment as I am a little bit of a Tree Hugger as well.
The solar energy industry is global in nature. It is a huge topic and there is a sea of information out there. It will be very difficult for me to churn out an industry write up to cover everything. The best way to do it is to write on piecemeal basis, whenever I discover something new. In other words, you will be seeing a series of articles from me regarding the industry. If you think that I am trying to pump and dump Tek Seng on you, you can choose to skip them. However, if you are interested in the solar energy industry and a green future for the world, you are welcome to participate in the discussions.
In the 15 February 2016 The Star article, the reporter mentioned that 2016 is expetced to be a good year for Photovoltage Cell makers and the industry will face a slow down in 2017.
According to the abovementioned article (and many other articles), expiry of US Investment Tax Credits (ITC) will result in a PV cliff in 2017. This piece of information is actually outdated. In mid December 2015, the US goverment extended the ITC until 2020.
Pursuant to the above, industry expert IHS lowered and increased its forecast for 2016 and 2017 respectively.
I am positive about this latest development. It smoothens out the supply and demand for PV cell. The year 2016 will not be as Ong as originally expected. However, in return, 2017 and beyond will now have better visibility.
I will give it a Like.
(By the way, is that the reason why Tek Seng decided to spend big to increase capacity by 200% in 2016 ?)