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JinkoSolar (JKS,$JKS) Declines 22%

|Includes: JinkoSolar Holding Co., Ltd. (JKS)
Market Overview

Summary of VE Stock Universe

 

Stocks Undervalued

74.69%

Stocks Overvalued

25.31%

Stocks Undervalued by 20%

37.93%

Stocks Overvalued by 20%

10.13%

Sector

Change

MTD

YTD

Valuation

Last 12-M Return

P/E Ratio

Aerospace

-0.68%

-7.26%

-1.45%

1.86% undervalued

-15.63%

37.47

Auto-Tires-Trucks

0.52%

-10.29%

-2.91%

22.56% undervalued

-19.99%

16.3

Basic Materials

-1.55%

-14.37%

-10.21%

20.67% undervalued

-35.09%

18.06

Business Services

-0.05%

-6.13%

1.78%

10.25% undervalued

-7.42%

25.79

Computer and Technology

-0.74%

-9.19%

3.01%

1.09% overvalued

-16.47%

44.1

Construction

-0.26%

-7.90%

10.25%

4.17% undervalued

-16.00%

39.14

Consumer Discretionary

-0.82%

-7.91%

6.19%

9.49% undervalued

-10.65%

27.01

Consumer Staples

-0.31%

-2.99%

3.94%

4.64% overvalued

-11.80%

24.6

Finance

-0.36%

-5.23%

8.50%

1.99% overvalued

-4.36%

21.46

Industrial Products

-0.27%

-9.07%

-1.23%

0.52% undervalued

-17.72%

18.31

Medical

-0.77%

-6.79%

4.82%

4.14% overvalued

-16.96%

27.39

Multi-Sector Conglomerates

0.11%

-8.17%

2.45%

2.34% undervalued

-11.50%

16.41

Oils-Energy

-0.82%

-12.90%

-11.98%

13.34% undervalued

-29.03%

26.69

Retail-Wholesale

-0.14%

-6.74%

4.84%

4.21% overvalued

1.06%

21.31

Transportation

-0.19%

-7.92%

2.26%

3.23% undervalued

-21.95%

16.6

Utilities

-0.50%

-6.30%

-4.32%

4.02% overvalued

-10.33%

23.09

JinkoSolar Holding Co., Ltd. is a solar product manufacturer with operations based in Jiangxi Province and Zhejiang Province in China. JinkoSolar has built a vertically integrated solar product value chain from recovered silicon materials to solar modules. JinkoSolar's principal products are silicon wafers, solar cells and solar modules which are all along the photovoltaic value chain, with a global network spanning across Europe, North America and Asia.

JinkoSolar Holding Co. was selected by our Diversified Growth Strategy as the primary short pick for the Energy Sector for this month's edition of the ValuEngine Forecast 16 Market Neutral Newsletter. When selected for our newsletter last week, the stock was trading at $5.32/share. As of yesterday's close, the stock was trading at $4.14. That represents a short gain of more than 22%. Chinese solar firms were the subject of a dumping investigation by the US Department of Commerce recently. As part of the resultant penalties, tariffs of 31.18% were imposed on companies like JinkoSolar. The company reports Q1 2012 results on June 20.

ValuEngine has issued a STRONG SELL recommendation for JINKOSOLAR HLDG on May. 23, 2012. Based on the information we have gathered and our resulting research, we feel that JINKOSOLAR HLDG has the probability to UNDERPERFORM average market performance for the next year. The company exhibits UNATTRACTIVE P/E ratio, momentum and volatility.

Based on available data as of May. 23, 2012, we believe that JKS should be trading at $4.67. This makes JKS 11.30% 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 JKS, we base this on actual earnings per share (NYSEARCA:EPS) for the previous four quarters of -$4.32,
forecasted EPS for the next four quarters of -$1.95, and correlations to the 30- year Treasury bond yield of 2.89%.

ValuEngine Forecast

   
 

Target Price

Expected Return

1-Month

3.91

-5.47%

3-Month

3.65

-11.72%

6-Month

3.25

-21.59%

1-Year

2.71

-34.63%

2-Year

2.29

-44.79%

3-Year

2.03

-50.87%

Valuation & Rankings

     

Valuation

11.30% undervalued

Valuation Rank

46

1-M Forecast Return

-5.47%

1-M Forecast Return Rank

2

12-M Return

-83.16%

Momentum Rank

3

Sharpe Ratio

-0.37

Sharpe Ratio Rank

32

5-Y Avg Annual Return

-46.30%

5-Y Avg Annual Rtn Rank

14

Volatility

126.58%

Volatility Rank

6

Expected EPS Growth

54.76%

EPS Growth Rank

77

Market Cap (billions)

0.09

Size Rank

42

Trailing P/E Ratio

n/a

Trailing P/E Rank

2

Forward P/E Ratio

n/a

Forward P/E Ratio Rank

n/a

PEG Ratio

n/a

PEG Ratio Rank

n/a

Price/Sales

0.08

Price/Sales Rank

95

Market/Book

0.23

Market/Book Rank

95

Beta

4.18

Beta Rank

2

Alpha

-0.78

Alpha Rank

4

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.