LDK Solar (LDK) has pulled back to about $9.60. Not too long ago, LDK traded around $15. The relative strength index is about 32, so these shares are oversold and due for a rebound. These shares have fallen recently with the market and concerns about solar subsidies in Italy. The 50 day moving average is $11.32 and the 200 day moving average is $10.77. LDK has very strong earnings and based on guidance from the company, it appears they could earn over $3 per share in 2011. This puts the PE ratio at about 3.5 which is extremely low for one of the leading low cost solar companies. China is already a leader in clean energy and it recently announced goals to further expand its dominance in this industry. You can read about their plans to double solar power goals by 2015 here. LDK has been rumored to be a takeover target multiple times in the past with a likely buyer being rumored to be Siemens (SI). You can see more on this rumor which was most recently in February here. With Total (TOT) of France recently agreeing to buy Sunpower (SPWRA) for $23.25 per share (which was a 46% premium to the stock price), it shows there is major interest in this sector and more deals are likely. It also shows the market is currently undervaluing solar stocks in general. Read about the Sunpower takeover which was announced a couple weeks ago here. Plus, LDK may spinoff the poly division in a Hong Kong IPO later this year which is likely to unlock hidden value in these shares. Of particular note is this just released Asian IPO Watch which reveals a $1 billion IPO for LDK's polysilicon and confirms Deutsche as the lead underwriter, see that report just released here.
Trina Solar, Ltd. (TSL) has pulled back to about $25.35. The 50 day moving average is $27.53 and the 200 day moving average is $26.37. TSL is estimated to earn over $4 per share in 2011. This puts the PE ratio at about 6. Multiple analysts have price targets of about $40 per share for TSL. See more on TSL's last earnings report here. Trina is very well managed and a leader in the solar sector.
Jinkosolar Holding Co., Ltd. (JKS) has pulled back to about $27.61. The relative strength index is about 49. These shares have fallen from a 52 week high of $41.75. The 50 day moving average is $26.10. JKS recently reported earnings of $2.36 per share for the fourth quarter, which also blew away estimates. JKS has earnings estimates of about $5.42 per share for 2011. This puts the PE ratio at about 5. The shares have received multiple buy ratings with price targets of about $40 for these shares. Jinkosolar recently announced a share buyback for $30 million which you can read more about here.
Yingli Green Energy Holding Co., Ltd. (YGE) closed at $10.66 recently. The relative strength index is about 36. These shares have a 52 week high of $14.29. The 50 day moving average is $11.32 and the 200 day moving average is $11.19, so the shares are trading close to support levels. Estimates for YGE are about $1.61 per share in 2011. This puts the PE ratio at about 7 which is higher than the other names above but still a huge discount to the stock market average. Yingli will benefit from China's growth and goals for increased solar power.
Giant Interactive (GA) is trading at $9.01. Giant Interactive is one of the leading online gaming companies in China. These shares have a 52 week trading range of $6.03 and $9.45. The 50 day moving average is $8.02 and the 200 day moving average is $7. GA earnings estimates are about 61 cents per share in 2011 and 69 cents for 2012. This puts the PE ratio at about 12 which is low for one of the leading online gaming companies. The balance sheet is extremely strong with about $4.29 per share in cash. Like PWRD, just about everything, from the low PE ratio, extremely strong balance sheet, and the future growth potential from the large population in China.
China Mobile Ltd. (CHL) is trading at $45.22. CHL is based in China, and provides telecommunications services. These shares have a 52 week range of $44.62 and $54.70, so these shares are trading fairly close to the 52 week lows. The 50 day moving average is $46.45, and the 200 day moving average is $49.50. CHL pays a dividend of $1.64 per share which is equivalent to a 3.6% yield.
Earnings estimates for CHL are around $4 per share in 2011. The book value is stated to be $22.08.
The data is sourced from Yahoo Finance and Stockcharts.com. The information and data is believed to be accurate, but no guarantees or representations are made. Rougemont is not a registered investment advisor and does not provide specific investment advice. This information is solely educational in nature and not intended to serve as the basis for any investment decision.
Disclosure: I am long LDK.
Additional disclosure: I have shorted puts on DANG, LDK, PWRD, and JKS.