Three Cheap Clean Energy Stocks

It is known that if you want to buy clean energy stocks, you'll have to pay the extra cash, since the industry has been booming for more than two years already.

Well, here are three clean energy stocks that I picked, that compared well to other stocks from this industry:

LDK Solar (LDK): Although it has silicon-stock issues to solve, this company is expected to report a clean net profit of $150M this year on $530M sales. That means P/E= 26 as we speak. For the year 2008, the company expects to double their sales as the expansion plan continues; therefore you might see a forward P/E of 14. I would say that is pretty cheap.

The next stock is Trina Solar (TSL): This company expects $35M in net profit this year. That makes it a very cheap solar panels-producer with P/E = 32 - almost half of the industry's average! For next year the company expects to more than double earnings and the forward P/E should be around 14. That's cheap.

The last stock I will bring to your attention is Canadian Solar (CSIQ). Although the company is still not profitable, it expects sales to reach $260M this year. The company's cap is currently $254M. That makes it the cheapest solar stock in the market in terms of sales multiplier ( less than 1)

Next year Canadian Solar expects more than $500M in sales. There is no doubt that the company will turn profitable next year, and even with 5% profit margin alone, the company's P/E (08) will be around 10 !

By the way, analysts estimate that for 2009 Canadian Solar will have $1.1 per share in earnings - that means P/E (09) = 8.3 for the current market price.

Disclosure: Author has a long position in some of the above-mentioned securities

Comments

[calvino:]

You really got some undiscovered gems here, flying under the radar since they IPO'd this year. With only about a dozen chinese ipo's in the same space in the last two years, you really got a find there, or three of them.

2007 Oct 25 07:06 PM

[asaf:]

I think so too... next month are the reports. LDK will be the first at the 1st of November. I think we are about to see strong and sharp moves up at those three. right now the prices are: LDK - $38, CSIQ - $9.3 and TSL - $54, just for the record... :-)

2007 Oct 26 11:25 AM

[eltigre:]

very well written, and concise, valuable info. THANK YOU

2007 Oct 27 02:41 PM

[Sandman:]

another good one out of Canada to watch for is ZPP. They have just started manufacturing emission free motorcyles and will be announcing their first quarter of earnings (3Q) very soon. They are a subsiduary of the Zongshen Group, one of the largest motorcycle manufactuers in China.

2007 Oct 30 07:07 AM

[growthvalue:]

SNEN.OB is another quality clean energy play for CNG powered cars, taxis and buses. With the support of the Chinese gov, providing tax breaks to the company, I see this being a great long term growth hold.


Boone Pickens, founder of Californian based natural gas fuels provider, Clean Energy Fuels, is said to be eyeing up China for investments supplying fuel for natural gas vehicles. Reuters reports that Pickens was in China last week in talks with state oil firm CNOOC. The report says talks centred around the company teaming up with Chinese companies to build natural gas fuelling stations for buses and trucks. Pickens is a long-time advocate of natural gas as an alternative fuel for transport, saying it is a more valuable use of the resource and to use it for power generation.

It seems to me SNEN is already ahead of the game....I wonder if Pickens would ever try to intergrate with SNEN

2007 Nov 02 04:46 PM