James Shaw

China Solar Companies Slowing Production

Let us find out whether the claims in this article are true during their earning report season:

JASO - tomorrow before market open
LDK - 11/19
TSL - 11/19
STP - 11/20

Now the bearish camp can easily win the game because market is in bear mode and the solar sector is no exception.

Most solar stocks are traded so low and I don't know how much lower it could go.

Most lost 90% from their highs.

In general, US solar companies are valued 10 times higher than similar Chinese solar companies based on their current and forward PEs

Yingli Green Energy: Tidy Earnings Bump Up Against Anti-Solar Sentiment

Solar stocks prices let me remember two years ago shipping sector.

In particular, I owned DRY in June 2006 when DRY was traded less than $10.

It was so cheap, big earnings, quarter by quarter, but Wall Street repeatedly said that dry shipping is a very risk business because the rates could up or down big.

But one year and half later, the stock went to $130, a 1,300% gain. The whole sector flied including EXM, TBSI, ... just name a few.

I believe that solar sector stocks as a whole (I mean Chinese solar stocks) are in bottom now. As long as they kept growing as they are now and in the near future, the stocks will be much higher in one year.

Ignore all the noises, do you own analysis.

Our fund now is over-weight on solar sector.

Solar Stocks: Cutting Back on Three Names

TSL best in the group:

Q2 est EPS has gone up a lot from $0.71 -> $0.80, 2008 from $3.14 to $3.24, 2009 from $4.09 -> $4.35 by analysts.

At $28, it is grossly undervalued.

LDK Q2 est EPS 0.42, price 33
STP Q2 est EPS 0.33, price 33
CSIQ Q2 est EPS 0.45, price 28

Not to mention US solar stocks.