TR-S2K

Solar Energy stocks were very hot the last few months, some of them went up more than 200% in as little as 3 months. What do you guys think about these stocks:

TSL, STP, FSLR, SPWR , ENER and ESLR

I bought some TSL about a month ago for $43.75 and it is now at $63.75, it was $68.90 last week. I also bought some STP two weekss go at $35 and it is $38.xx today. I have some extra to invest, should I buy some more Solar Energy stocks such as ESLR or ENER or something else ? Is it too late to invest more in Solar Energy stocks ?

WyattH

*Interested in hearing responses. An industry I've never considered. Sounds like you've done well so far.

trapper

Wish I'd bought TSL back in January....... it's up over 300% since then. It closed today at $63.90

d0nkeyxPunch

I don't think it is not too late since global warming and being energy efficient is such big issue nowadays.

WyattH

don't think it's not? so you think it is?

cthree

Since you're invested in them I'd hope you could tell us if you think they have any legs left. I think you're the resident expert.

TR-S2K

Global warming = reduce greenhouse gas = clean energy = solar (and wind) energy

Energy consumption in the world is increasing at a rate of 3-4% a year, the rate of increase is much higher in China and India. The cheapest source of energy is coal but it is the most dirty, the cleanest source of energy is solar but it is the most expensive. Many countries in Europe and states in US subsidizes the cost of Solar installations. More solar power plants are building in Europeans countries and some states in US. More private homes and business are installing solar panels on their rooftops. Demand for solar power are increasing at a much higher rate than supply, mainly because the capacity to produce polysilicon used in most solar panels is not keep up with demand. Solar energy companies with good source of polysilicon or have their own polysilicon production will be the most profitable the next several years. The cheapest polysilicon is produced in China as just anything else, so that China solar energy companies such as Trina Solar, SunPower, JA Solar ... are in good position to dominate solar energy market.

Currently, my positions with solar energy stocks is about 40% of all my investment, I am thinking of increasing to 55-65%. I am doing more research to select which stock(s) I will buy more in the next few days. I will update my positions as soon as I decide which one to buy.

Happy investing !!!

WyattH

Thanks, TR-S2k!

cthree

Dude, it's great you are keen on green and all but are you really ready to bet half your savings on an industry which hasn't proven it can turn a profit and relies on govt. subsidies to stay afloat? I think you should consider the economics and realize that if commercially viable solar power generation is some ways down the road many of the pioneers will be killed off by natives before then.

You're cruisin' for a 2000 style bruisin'.

TR-S2K

I am not a tree hugger by any means; I am just an investor who likes to get the most return on my savings. That being said, I think solar energy companies will grow substantially the next few years, solar technology is not new, it had been around for decades, it is catching on because heavy subsidies by many governments around the world to combat global warming, and many private companies are installing solar power at the top of their buildings to get some good PR. Solarbuzz, a market research and consulting firm, estimates that the revenues of solar installations will increase from $11B last year to $19B - $32B in 2011. With that much growth, because of heavy subsidies from international governments, those solar energy companies will have better profit margins, thus higher stock price. These four solar power company stocks may increase much more than S&P500 the next month(s), quarter(s) and the next few years:
Friday close: TSLR $59.79, SPWR $59.55, STP $37.73 and JASO $26.38. SP500 1,494.07
All these four companies are profitable companies, but the trailing PE ratios are high at 55 or higher. But forward PE is as low as 16, it means they are growth companies and their stock prices will reflect their potential future earnings.

We will see how these four companies are stacking up against S&P500 by the end of next week and at the end of May. I will buy some JASO and SPWR shares the next few days if the price is right (if either stocks are lower a few percentages).

I understand that to get higher reward I would also get higher risk. If I am looking for 10-15% return per quarter I would also willing to loose 10-20% per quarter. There is no such thing as high reward and low or no risk.