rana

Solar and Cash: The Big Boys Have an Answer - Do You?

good article.
i like the way you point out the risks while not making a stand as it's almost impossible to point out future winners and losers in an evolving industry.
i totaly love SOL (long). it seems they look great almost in every aspect, cash needs aside. since they are wafer suppliers cash needs are lower than for the integrated companies and since it's now a cloud over the manufac.. it seems the company is in better shape than many others. when cash needs will cease to be a problem the company will be less desired as the risk for integrated companies will be percieved as lower.
yet, there is one thing i miss in all the articles regarding solars, they all deal with the manufacturers along the food chain, but i saw none (maybe there are few, but i didn't see them), that deal with the other related companies.
INFRASTRUCTURE and EQUIPMENT. these are two sectors within the industry that will probably still grow even if pricing and margins will be volatile for the manufac...
our goal is to find the cheap stocks in these sectors or to find market leaders that don't have huge price premium.
i already pointed out SPIR (which i'm long), but i'm looking at other companies like FLR ASYS SOLR .... for good entry points.
everyone must do thier own due dilligence on each stock as they are very different (what they do, how big they are, how much risk they carry...) and if they like a stock then it's time to calculate entry price based on the return you demand that will create a high risk reward ratio.
if the price you want can't be achieved you stay out, or you can make a multiple step plan which basically calls for different levels of entry prices (taking into account the number of shares you want to buy). at the end of the proccess you need the average price to be equal or lower than the initial price you calculated. this method is more compicated and more risky so it is better for most to stick with the simple method.