Suntech Power Holdings (NYSE:STP) got a nice 5.01% pop on Wednesday on news that it had signed a big supply agreement with a Spanish solar firm. This came a day after the company released overall pretty decent quarterly results.
But to some, STP looks richly valued, even after all the good news. Are you one of them? If you have about 5 minutes to spare, I would recommend watching the first segment of Friday’s Stars & Dogs on Report on Business Television [ROB TV]. To watch this video, scroll down to "Stars and Dogs" at 6:00pm. The link will only be available for a week or so. My apologies for not being able to provide an easier way to view the video.
ROB TV is a Canadian financial news network, and Stars & Dogs is a show where the 2 anchors each take the bull and the bear side of the story du jours. The very first item on yesterday’s agenda was STP. At the end of the segment, the show’s producer adjudicates on which side was the most convincing, and on STP he went for the bear argument.
I have owned this stock almost since the beginning, so I’ve seen it soar to unjustified heights and fall to levels where I thought I should buy more. I do find it a tad pricey at around $28 and prefer it in the lower 20s. One thing you should expect, no matter what, is a lot of volatility – the alternative energy sector is a relatively new beast and investors are just beginning to wrap their heads around how those stocks should be valued.
STP 1-yr chart