imuni4fun

China Solar Safari: Hunting for Five Value Companies

Shawn

What are your thoughts on SOLF? A year ago, their financials and production were nearly identical. It turned out that as Solarfun chose more vertical integration and entered into higher priced long term inputs contracts they brought the hurt inwards more than CSIQ, who has a more modular structure and is therefore seeing more benefit from lower poly and wafer costs. And, as you mentioned, CSIQ can always fall back on UMG-Si if poly spikes again. With CSIQ at $19 and SOLF just below $8, is this a situation where SOLF may snap up to, say, the 12-15 range to "catch up" or are they hurting due to their more vertical integration or other factors? I'd love to hear inputs on this from anyone who knows the relevant facts.

Jason

A Look at Four Polysilicon-Based PV Manufacturers' Funding

Personally, I was not bothered by the share dilution of CSIQ and TSL. Since financing seems to be the only problem analysts point at when warning about these companies, I would just assume take a small dilution hit (when compared to the growth potential) so that the analysts can't say these things anymore. If the fears are abated, this sector would be much healthier and would grow much faster. Those P/E's would approach more reasonable levels :)

Long TSL, SOLF
Long Calls on TSL, SOLF, CSIQ