From Eric Savitz's Tech Trader Daily

Solar: Rally Extends; Rising Demand Vs. Lower Prices

June 10 - There’s quite a rally going on in the solar stocks, as the Street engages in a spirited debate on the offsetting impact of rising demand and lower prices.

Battle Road Research analysts Dave Arcaro and Matt Schultze today backed off a bearish stance on the sector, moving to Hold from Sell ratings on FSLR, SPWRA, TSL, Q-Cells (QCE.F), JA Solar (JASO) and Energy Conversion Devices (ENER). He remains negative on Yingli (YGE), LDK Solar (LDK), ReneSola (SOL) and Evergreen Solar (ESLR). Aracaro notes that the spot price of polysilicon has dropped to the $65-$75/kg range, from $100-$110 in the first quarter - and that the price could hit $50 by year end. The falling cost per watt should spark demand, he contends. Aracaro contends demand in Europe is accelerating, thanks to falling prices and easing credit conditions in Europe.