Investing in Solar – Part 2


Monday, June 23rd, 2008
Here is a follow-up to my last article about solar investments. Five more solar stocks to choose from along with my ratings for each.
RSOL – Real Goods Solar, Inc. – $6.14
Real Goods Solar, Inc. (Real Goods) is a residential solar energy integrator. The Company offers turnkey services to its customers, including the design, procurement, installation, grid connection, monitoring, maintenance and referrals for third-party financing of solar energy systems.
My Rating: Strong Buy
Reasoning: Solid revenue growth over past four years. Not a lot of debt. Company should be profitable soon.
JASO - JA Solar Holdings Co., Ltd. – $19.89
JA Solar Holdings Co., Ltd. (JA Solar) is a manufacturer of solar cells based in China. The Company designs, manufactures and markets high-performance solar cells, which are made from specially processed silicon wafers.
My Rating: Strong Buy
Reasoning: Huge year over year growth. Low debt compared to assets. Good presence in growing Chinese market.
CSIQ – Canadian Solar Inc. – $47.21
Canadian Solar Inc. (CSI) designs, develops, manufactures and sells solar cell and module products that convert sunlight into electricity for a variety of uses. The Company conducts all of its manufacturing operations in China.
My Rating: Buy
Reasoning: Great revenue growth year over year. Debt and P/E ratio somewhat high.
TSL - Trina Solar Ltd. – $37.25
Trina Solar Limited (Trina), is an integrated solar power products manufacturer based in China. The Company produces standard solar modules ranging from 160 watts to 185 watts in power output.
My Rating: Hold
Reasoning: High debt could prevent stock from keeping up with many of companies in this sector.
SPWR – SunPower Corporation – $82.65
SunPower Corporation (SunPower) is a vertically integrated solar products and services company that designs, manufactures and markets high-performance solar electric power technologies. Its solar power products are sold through its components business segment, or its components segment.
My Rating: Buy
Reasoning: Good presence in the market and impressive growth, however much of the positives could already be priced into the stock resulting in an extremely high P/E ratio.
* Disclosure Statement – At the time of writing this article, I do not own shares of or do any business with any of the above companies.
-LINKS-
Real Goods Solar, Inc
Solar Holdings Co., Ltd.
Canadian Solar Inc.
Trina Solar Ltd.
SunPower Corporation