Alternative energy bulls face bear market

By Steve Gelsi, MarketWatch

While some hail the election of President Barack Obama as a boon for alternative energy down the road, the renewable sector remains stalled compared to the flurry of deal making earlier this year.

Although legislators in Washington are laying out an ambitious energy agenda for the coming year, the credit crises and cheap gasoline have dealt a double-blow to the prospects for biofuel, solar and wind energy champions. No less than five initial public offerings, as well as an undetermined number of financings and mergers, remain frozen in the ice of the 2008 credit crises as the bear market pierces the alternative energy bubble.

In a telling sign of the times, the most recent renewable energy IPO from profitable solar cell manufacturer GT Solar (SOLR) now trades at $2.59 a share, after debuting at $16.50 a share on July 24.

“It’s highly unlikely that we’ll see any alternative energy IPOs right now, with the price of oil coming down dramatically and the last alternative energy IPO, GT Solar, being an exceptionally poor IPO,” said Scott Sweet of IPO Boutique. Read more….