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ValuEngine Forecast Model Scores Again with Trina Solar (TSL,$TSL) Short Pick

|Includes:Trina Solar Limited (TSL)

ValuEngine Forecast Model Scores Again with Trina Solar (TSL,$TSL) Short Pick

For today's bulletin, we take a look at yet another short pick in the solar industry, Trina Solar (TSL,$TSL). Trina is the latest Energy Sector short-side pick for our Forecast 16 MNS Newsletter portfolio. As of today, Trina is down more than 10% since our rebalance last Thursday and is leading our short side. This follows on the heels of last month's success with another short solar pick--LDK Solar.

TRINA SOLAR LTD has developed a vertically integrated business model from the production of monocrystalline ingots, wafers and cells to the assembly of high quality modules.They are led by an international management team from several different nations. Trina uses partnerships with suppliers in Switzerland, Italy and Germany which provide the latest technology for the company's production facilities in China.

ValuEngine has issued a SELL recommendation for TRINA SOLAR LTD on Sep. 21, 2011. Based on the information we have gathered and our resulting research, we feel that TRINA SOLAR LTD has the probability to UNDERPERFORM average market performance for the next year. The company exhibits UNATTRACTIVE momentum, expected EPS growth and volatility.

Based on available data as of Sep. 21, 2011, we believe that TSL should be trading at $22.32. This makes TSL 63.99% undervalued. Fair Value indicates what we believe the stock should be trading at today if the stock market were perfectly efficient and everything traded at its true worth. For TSL, we base this on actual earnings per share (NYSEARCA:EPS) for the previous four quarters of $3.33, forecasted EPS for the next four quarters of $1.99, and correlations to the 30- year Treasury bond yield of 3.21%.


 

Valuation & Rankings

Valuation

63.99% undervalued

Valuation Rank

93

1-M Forecast Return

-1.04%

1-M Forecast Return Rank

4

12-M Return

-69.77%

Momentum Rank

4

Sharpe Ratio

-0.26

Sharpe Ratio Rank

40

5-Y Avg Annual Return

-22.87%

5-Y Avg Annual Rtn Rank

26

Volatility

89.08%

Volatility Rank

15

Expected EPS Growth

-40.21%

EPS Growth Rank

5

Market Cap (billions)

0.63

Size Rank

61

Trailing P/E Ratio

2.42

Trailing P/E Rank

98

Forward P/E Ratio

4.04

Forward P/E Ratio Rank

96

PEG Ratio

n/a

PEG Ratio Rank

n/a

Price/Sales

0.27

Price/Sales Rank

87

Market/Book

0.52

Market/Book Rank

90

Beta

3.19

Beta Rank

4

Alpha

-0.86

Alpha Rank

3


 

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MARKET OVERVIEW


 

Summary of VE Stock Universe

Stocks Undervalued

85.21%

Stocks Overvalued

14.79%

Stocks Undervalued by 20%

56.48%

Stocks Overvalued by 20%

4.86%

 

 

 

SECTOR OVERVIEW

Sector

Change

MTD

YTD

Valuation

Last 12-MReturn

P/E Ratio

Aerospace

-1.43%

-4.90%

1.42%

21.16% undervalued

3.21%

16.45

Auto-Tires-Trucks

-1.51%

-5.09%

-31.46%

26.19% undervalued

9.05%

16.62

Basic Materials

-1.09%

-4.88%

-16.97%

21.45% undervalued

16.69%

30.8

Business Services

-0.81%

-1.92%

-7.80%

21.68% undervalued

1.34%

37.36

Computer and Technology

-1.92%

-2.82%

-10.68%

23.49% undervalued

4.55%

32.38

Construction

-1.44%

-6.16%

-27.73%

29.91% undervalued

-13.29%

34.56

Consumer Discretionary

-1.53%

-3.12%

-12.99%

21.48% undervalued

5.26%

24.59

Consumer Staples

-1.07%

-3.12%

-15.67%

17.19% undervalued

1.15%

15.91

Finance

-1.07%

-3.80%

-12.34%

21.86% undervalued

-3.35%

23.36

Industrial Products

-1.80%

-5.54%

-17.17%

24.89% undervalued

6.90%

22.08

Medical

-1.10%

-2.74%

-4.92%

25.13% undervalued

5.18%

25.24

Multi-Sector Conglomerates

-0.79%

-4.39%

-15.90%

19.48% undervalued

2.74%

20.7

Oils-Energy

-1.53%

-5.70%

-18.43%

22.16% undervalued

17.71%

36.74

Retail-Wholesale

-1.63%

-1.65%

-3.57%

18.02% undervalued

13.66%

24.49

Transportation

-1.89%

-5.46%

-17.15%

21.74% undervalued

-6.99%

20.63

Utilities

-0.16%

-2.75%

-4.26%

7.14% undervalued

7.75%

24.63

 

Stocks: TSL