Investors easily chase high fliers when analysts upgrade stocks. A good example is Yingli green energy(NYSE:YGE) today traded as high as 20% when Lazard upgraded. However, the company is trading at PE=18 of 2009, which is lofty. The same is happening with Suntech (NYSE:STP), the stock is trading at PE=36 of 2009. Solar stocks were beaten down heavily last year and earlier this year. The bounce was vicious. I am going put up a table to compare different solar companies out there and hopefully you can tell which company gives best value for investors.
The Best value so far I see is Renesola (NYSE:SOL). For some reason, the stock is not moving at all, particularly because no analysts have started to touch the stock yet. The company posted solid earning last week, the most important thing is the company makes money, unlike its peers Solarfun (SOLF) and Canadian Solar (NASDAQ:CSIQ), who are losing money.
Renesola reported a net margin of 16%, which is among the highest in Chinese solar. The company also acquired JC solar, a local solar PV maker who has sales worldwide(EU, Africa, Asia, and of course in China). The combined company projects 1.3GW PV production in 3 years. The beauty is that Renesola becomes a vertical integrated PV maker, just like Trina solar (NYSE:TSL). LDK is also attractive here as it is trading at a PE=10 of 2009. But Wall Street had headaches with the LDK's management in the past, and again, wall street is unimpressed by the earning release last week.
|Company||Mkt Cap ($M)||Current Price||YTD Chg||Rev 09E||Rev 10E||EPS 09E||EPS 10E||P/E 09E||P/E 10E||Net Margin|
Auther is long SOL, FSLR