German companies reported losses in emerging solar energy shares passed their prime

Berlin, Dec. 16 Germany's largest solar power company Conergy companies said last week that the company this year will be 150000000-200000000 euros pre-tax loss as a restructuring of the company, will lay off 500 people next year. After the announcement, the company's share price fell more than 20%.

Within two months, Conergy shares have fallen about 70%. As early as in early November, the company issued a profit warning for the first time on the market panic, the company's share price fell nearly one-third of the day. 8 trading days later, Germany 10 emerging energy prices a quarter of the shares, investors shudder.

In recent years, new energy enterprises can be said to be Germany's brightest stars of the stock market. In the past 4 years, the German Technical Exchange index of 10 component stocks of companies the market value of the stock up almost 8 times.

In fact, such a surge in the fall after not unusual. At present, Xiamen Machinery & Electronics Exhibition has always been the type of stock analysts have changed their view that solar and wind energy stocks are no longer "unlimited scenery." An investment bank analyst noted that, while such enterprises have good prospects, but in view of falling commodity prices, profit margins, as well as reduce the silicon raw material supply bottlenecks encountered, their production capacity and the ability to profit expansion can not be sustained.

In addition, Germany, according to previously issued by the "Renewable Energy Law", began in 2009 at the latest from government subsidies to the industry will be gradually reduced, which will cause the industry's profits shrink. The German solar energy equipment, the main importer of the United States, the legislature would extend the tax benefits of these products is unknown.

From the statistics, in the new round of energy shares fell, hurt most are still small and medium-sized investors. They emerging energy stocks may be too high expectations, many individual investors also joined by the banks to issue new shares of energy index warrants gamble, some people now have to lose money.