sgleichman

There's a Solar Shakeout Coming - Citigroup

There are some Chinese plays that never get a mention that have PEGs well below 1 and forward PE's in the low teens. For the next two years a few of these companies will provide investors huge returns. Do your DD. I own TSL, CSIQ, YGE and LDK in that order.

As far as the US, this election might prove huge in the attempt to make us a contry that actually produces and manufactures items again. There are states that are ahead of the game and who are "subsidizing" alternative energy manufacturing and attracting AE manufacturing. The US is behind the curve as yet but we may see a solar (and wind) boom here in the next few years.

There are also laws on the book right now in 20+ states that mandate a percentage of electrical power to come from AE sources and the power companies have to invest in solar to comply and meet timelines. This is in it's infancy and bet that Evergreen will also flourish in time.

Those Bubbling Solar Stocks

What garbage... FSLR may be expensive but may be priced correctly if they continue massive growth. Other stocks like CSIQ. TSL and YGE have PEG's under .5 with forward PE's near 10 (which is 20-33% of growth rates) That is deep value in a high growth stock. There are 10 baggers here and POT and FSLR are not the likely candidates. You should be pointing out the hidden value as opposed to calling out FSLR and hinting that the sector is overvalued.

Next point, with a new administration, especially if Dem, there may be an alternative energy industrial revolution on the way and companies like ESLR (US Based) might then fly with subsidies big oil has thrived on until now.

Under The Radar News - Tuesday

SIMO is the best deep value / high growth play on the street. Misunderstood as earnings and margins have been steady as they sell controllers and are not pressured by NAND pricing. PEG of less than .31 and a forward PE on guided earnings around 7 with a 30% growth rate.

Current Valuations Are Well Above the Market's Historical Average

Your title "Current Valuations Are Well Above the Market's Historical Average" is very misleading as it pertains to the S&P and implies that the entire market is over priced. The dogs, oil, gold, corn, wheat and financials (ones that still have a PE) have all been overbought while there are HUGE opportunities in many smaller growing companies, that after this bear-beating, have PE's that are one quarter their growth rate or less. There are very rare buying oppurtunities out there but one would never understand it from you slanted article.

I think a more appropriate title would reflect that you are speaking about the S&P and not generalizing to lump everything into the "overpriced" category.