Chinese solarmakers will win the day: Kravetz
"The Chinese will crush them European manufacturers in up markets, and they will still make money in down markets," Kravetz, who runs Esplanade Capital in Boston, said at the Reuters 2011 Investment Outlook Summit in New York.
Kravetz, who specializes in retail and energy stocks, is betting that European solar equipment manufacturers' stock prices will fall while those of Chinese competitors will rise.
Detailing his favorite ideas for solar stocks to short, Kravetz named Germany's Solarworld and Norway's Renewable Energy Corp . On the long side, among others, he likes China's Trina Solar.
"The Europeans just can't compete," Kravetz said, because of higher labor costs, equipment prices and even electricity costs compared with the Chinese.
Solar energy has captured the interest of investors and manufacturers in the last years in a drive to go beyond traditional fuel sources like coal and natural gas.
But the early leaders in the field, European manufacturers, are now finding that Chinese competitors pose a real threat, Kravetz said.
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