Solar sector has been beaten DOWN senselessly lately.......
This IS one sector where Sales & EPS is exploding.......
Solar sector is enjoying "worldwide growth in demand"
No sector which I follow shows doubling of Sales for entire sector.....the only exception IS SOLAR......
Solar stocks will be the-biggest beneficiary of Sky high Oil prices....
Solar IS @ very early stage of acceptance worldwide......
For a highest growth sector Solar is selling @ steep-DISCOUNT to growth rate...which should correct shortly......
So..how do you play this sector.......????
It all depends on your OWN comfort level.......you can go CONCENTRATED position or you CAN go DIVERSIFIED.....no matter what you do...make sure you are OVERWEIGHT in this sector...
SOLAR Demand is so HIGH "worldwide" that most companies have done follow on secondary or convertible..as they ALL need to EXPAND their production capabilities ASAP......I am looking @ 2nd half of 08 as an OVERDRIVE growth in Sales & EPS as most companies are "ramping UP their production of Wafers/Solar Panels & installations"
So here is the PE comparison of everything Solar where there IS earnings :
SOL..... Price $18.37 12/08 EPS $1.30 PE 14.13
CSIQ....Price $40.38 12/08 EPS $1.95 PE 20.71
LDK.....Price $39.82 12/08 EPS $1.73 PE 23.02
JASO...Price $17.52 12/08 EPS .93 cents PE 18.84
SOLF...Price $18.04 12/08 EPS .95 cents PE 18.99
YGE.....Price $16.16 12/08 EPS .97 cents PE 16.66
TSL.....Price $30.71 12/08 EPS $3.26 PE 9.42
STP.....Price $36.53 12/08 EPS $1.56 PE 23.42
FSLR...Price $266.25 12/08 EPS $2.91 PE 91.49
SPWR...Price $72.71 12/08 EPS $1.65 PE 44.07
All EPS taken from MSN moneycentral.com.......
So there you have it....a CLEAR picture of how UNDERVALUED Chinese Solar companies are compared to US solar companies...who decides these valuations and on what metrics...is an unknown mystery of Wall Street......
My thesis IS that very SOON the PE gap will NARROW.....as Chinese Solar are showing ROBUST Sales & EPS growth.....soon the PE on all Chinese solar will reflect their EPS growth rate which is averaging 60%...so 60 PE on Chinese Solar is NOT out of reach....imho...It IS a question of WHEN NOT IF !!!!!
Good luck on your own FA/TA/TAPE analysis of everything Solar $$$$$$$
PS....Wall Street "never rings a bell @ BOTTOM"
BLOG does NOT give buy or sell.
Saleem
5 comments:
Hi Saleem. Seems to me CSIQ is the best bet both fundamentally and technically. SOL & LDK also have very bright futures. The rest worry me.
Hi Minaccess,
CSIQ has been a star performer before ER.....
SOL for me is like CSIQ before ER...
Based on PE SOL has an edge but TA wisr CSIQ is SUPERIOR !!!
I say buy all 3..SOL,CSIQ & LDK..cannot go wrong !!!
Saleem
HELLO all
Let hope for some poisitve news loooks like another RED day.
Look at all the positive news on AAPL! It is a screaming buy here!
Looking ofr MON show strength this week and oils and nat gas to blast higher
Hi Madmax,
Very good chance of GREEN today !!!
Saleem
Good morning.
Max, your gasser picks are rockin. It would be nice to see SOL go green. My GSI is taking off. Good trading all.
Victor
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