David White

China ADRs: Mixed July

I should have mentioned JASO which also reports this week. It was recently given a new buy recommendation. Also SOL has steadily moved up from a 2 star CAPS rating to a 5 star CAPS rating. It should do well.

China ADRs: Mixed July

Both LDK and CSIQ report earnings this week (8/11/08-8/15/08). Other solar stocks report the next week such as SOL, STP, and TSL (perhaps others also). After the big down movement recently, I think we can expect an up movement over the next couple of weeks from these stocks. Virtually all should report great earnings. Hopefully LDK will report some positive guidance about their polysilicone plant also. The ones will great multiples seem likely to move up substanitally. This would include LDK, SOL, CSIQ, and TSL. LDK's movement will likely be dependent on its margins and its guidance about the two polysilicone plants it is building. The others should all move up on great results. The highest rated ones should move up more easily. The average analyst ratings for the latter three stocks are: SOL (1.8), CSIQ (2.0), and TSL (2.3). The FPE's are: SOL (6.88), CSIQ (7.40), and TSL (6.23). It looks like there is likely some room for these stocks to move up. They all have low PEG ratios, especially when compared to FSLR (which has moved down after its great earnings). FSLR's PEG ratio is currently 1.29. FSLR's FPE is 37.54 (even after the great earnings). The PEG ratios of the others are: LDK (.34), SOL (.26), CSIQ (.39), and TSL(.28). I think you can see where these other solar stocks may behave differently than FSLR at this point in time. Of course, there is still the possible headwind of oil prices continuing to go down.