Time 8:38

Stocks in the News:

Solar stocks:
The solar power business is bracing itself for a collapse in prices that could lead to a shake-out - FT
FT reports the solar power business is bracing itself for a collapse in prices that could lead to a shake-out in one of the most promising areas of the renewable energy sector. However, a price slump could hasten the take-up of the technology which would help boost the overall volume of future activity, even as margins fall, industry analysts and officials add. Expectations of falling prices have been partly sparked by a surge in the level of manufacturing capacity for solar panels. This is likely to lead to demand outstripping supply for the first time in years. Another factor driving prices is uncertainty over the degree of government subsidies in some key markets for the technology. According to Dean Cooper, analyst at Ambrian, the global capacity for production of photovoltaic equipment - the biggest section of solar power technology which converts sunlight directly into electricity - is set to increase "dramatically", from 3 gigawatts last year to 15 to 20 gigawatts of production in 2010. Much of the growth is coming from China. Prices for solar components would drop from about $3.80 per watt to about $1.40 a watt by 2010, he said.

SOL: Sell remaining position as this story will override my other trading rules. This is a 30% increase in float and will put the stock down at least 15% until the deal gets done. Look to buy the stock back when the deal is done.

ReneSola (SOL) files for a 9 mln share ADS secondary offering; 8.14 mln ADS are being offered by the co and 860K ADS are being offered by selling shareholders

CME, NMX:


CME CME move for Nymex likely to be blocked - Financial Times (430.30 )
Financial Times reports the CME Group's (CME) attempt to enhance its position as the world's biggest financial exchange by taking over Nymex (NMX) is looking increasingly likely to be derailed by shareholder opposition. Any deal must be approved by at least three-quarters of Nymex's membership, meaning opponents of the bid need only secure 205 of 816 votes to block the takeover, a figure both activists and independent. While many members at the New York energy exchange feel the Chicago group's offer to buy them out for $612,000 per seat is too low, the target co's shareholders are unhappy about the level of the overall cash-and-shares bid, which has dropped from $11.3 bln or more than $119 per share when it was first proposed in January to $8.8 bln or about $93 per share due to falls in the CME's share price. Gary Glass, who is spearheading one of several shareholder groups opposed to the current terms, said the bid would be voted down unless it was raised to near the level of the original proposal. "If the CME wants Nymex, they have got to pay," he said. "If they don't pay, there's no way this deal's closing whatsoever." Those familiar with the CME's thinking say there may be some wiggle-room for a relatively modest improvement in the offer, but warn it will not come close to what the opposition groups are demanding. "Will the CME come up with another billion dollars? Absolutely not," said one former CME board member.