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07.12.08: What's going on with our solar stocks? Are the existing moratoriums on solar plants in federal land hurting our stocks? What's the future of solar in the U.S.?

First, please remember that First Solar (FSLR) and Sun Power (SPWR) are incredibly volatile stocks. As I've told my Blue Chip Growth subscribers, a down stretch doesn't mean you should unload them. Germany has already booked much of the solar panels that FSLR is manufacturing, so it would be very hard for solar to make a significant contribution to electricity in the U.S., since Germany and other European countries have the head start. The U.S. has to wait in line due to the incredible order backlog. And just days ago, the government lifted restrictions you alluded to that banned solar plants from public lands in the West.

But specific to these stocks, I anticipate that solar energy will contribute to cutting carbon emissions and finding public appeal even if solar never dominates the power scene. FSLR and SPWR are still great buys as more people are thinking "green." These stocks also seemed to get a boost from the G8 meeting this week where they pledged to cut carbon emissions.

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