Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Chanos’ Favorite Short Idea: Shorting Green Energy

Earlier today we showed how Jim Chanos made out like a bandit by shorting Chinese stocks. Chanos was on Bloomberg TV yesterday and saying that he was’t bearish enough about China. Today at the Ira Sohn Conference Chanos revealed his favorite short idea: solar stocks.

Jim Chanos puppeteer

Solar stocks started the day weaker and went down further after Chanos’ remarks. Chanos doesn’t like the economics of green energy stocks which depend heavily on government subsidies. As Europe is going through a fiscal crisis, Chanos believes the subsidies for green energy companies will dry up. Chanos specifically recommends selling First Solar (FSLR) and Danish Vestas.

David Blood, Miguel Nogales, and Al Gore’s Generation Investment Management has a huge stake in First Solar. However, there are several prominent hedge funds who have massive amounts of put options on First Solar. Ken Griffin’s Citadel had $76 Million, Curtis Schenker’s Scoggin had $73 Million, and David Einhorn’s Greenlight had $46 Million in First Solar put options. Clearly this is a must-short stock for several long/short equity hedge funds.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.