Stock Ideas 
Stock Ideas Investors Daily Edge Ride or Slide:The Solar Sector
Stock Ideas Investors Daily Edge Ride or Slide:The Solar Sector 
Market Watch
|
By Rick Pendergraft After last week’s incredibly busy schedule of reports, this week should be a little calmer. But it is still filled with important reports. The first one will come out at 10:00 this morning in the form of the Institute for Supply Management’s Services Index. |
|
| More... |
Most Popular
Login Form
| Ride or Slide:The Solar Sector |
| Friday, 13 June 2008 | |||||||||
|
I’ve been getting a lot of questions lately about the solar sector. So instead of covering just one stock, I decided it’d be better to cover the sector. Solar technology and sales have both been growing by leaps and bounds lately. Not only are solar cells far more efficient than just five years ago, but they are cheaper and improving all the time. But there’s one thing that really speaks to the industry. It’s still young and very fragmented. Solar Fun (SOLF), Canadian Solar (CSIQ), Trina Solar (TSL), Ascent Solar (ASTI), Akeena Solar (AKNS), and World Water & Solar Tech (WWAT.OB) all have market caps of under $1 billion. Evergreen Solar (ESLR) has a slightly larger market cap. Three of these seven companies (SOLF, CSIQ and TSL) are operating at a profit. Plus, their revenue and profits are growing by triple digits. And the most striking thing about them is that they are cheap. With forward P/E’s ranging from 2.07 to 12.42. If you look at their PEG (Price to Earnings Growth), they are all under 0.5. Two of these three (CSIQ and TSL) have projected growth in excess of 19% for the next five years. And how about the last one, SOLF? Shockingly enough, they have projected earnings growth of 6.6% for the next five years! If you believe in efficient markets, this is proof that that’s a farce. How can a company in a booming sector that grew revenues in the first quarter by 85.5% and net income by 97.9% from a year ago, be projected to grow earnings by less than 7% for the next five years? Maybe it’s just me, but this seems like extremely low expectations. What this means is that SOLF is likely to exceed analyst expectations in the years ahead. And as long as they exceed expectations, their shares should move higher. That makes SOLF one of the most attractive plays in the solar market today. P.S. Want to see me cover a stock? Send an e-mail to This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
This investment news is brought to you by Investor's Daily Edge. Investor's Daily Edge is a free daily investment newsletter that is delivered by email before the market opens. It's published by Fourth Avenue Financial, a subsidiary of Early To Rise (an affiliate company of Agora Publishing). In each weekday issue you'll receive practical strategies for protecting your portfolio and multiplying your money. You'll also learn about undiscovered opportunities in emerging sectors and markets, deeply discounted stocks, recommendations for bonds, cash, commodity and real estate investing, and top ETFs. To view archives or subscribe, visit Investor's Daily Edge .
|
|||||||||
Reviews (1)
| < Prev | Next > |
|---|
