Axiom Negative On Solar (JASO)

Axiom Capital Research is negative on the solar space, and in particular JA Solar Holdings Co., Ltd. JASO. It rates the company a sell, and has a $5 price target. In the research report Axiom writes, "In short, in commodity markets, prices fall when supply begins to exceed demand. As such, in conjunction with our initiation of coverage report published this am on JASO we do not believe the Chinese module producers who are claiming they are sold out for 2H10 are really sold out – we will remind our readers that as recently as 8/10/10, Gintech noted that it was sold out. As such, at risk of stating the obvious, with the company now dropping prices for C4Q10 delivery, we argue that this is empirical evidence that the company is indeed not sold out. When considering Gintech is nearly the size of JASO, we see the company's comments on pricing for C4Q10 as an incremental negative for JASO." Shares of JASO are up 11 cents to $7.34, a gain of 1.6%.