RallyCry (< 20)

Brighter Days for Solar Plays?

January 14, 2011 – Comments (1) | RELATED TICKERS: JASO

I was taking a look at JASO today and have decided there is a lot to like from a valuation perspective. There is a fair amount of skepticism that has been priced into the stock regarding the phasing out of European subsidies and solar supply/demand profiles. Earnings will be reported Feb 10th. I see a nice move ahead of earnings if the street anticipates that guidance will offer some golden nuggets. At a P/E of 6 and a PEG around 0.4, the move to the downside seems more limited than the upside potential. If the company does $1.50 for full year which is slighly better than the $1.40 expected, and we assign a slight increase in P/E to 7, that would put us at $10.50. Conservatively, I see $8.50-9 in the next several months. If oil continues its march higher to $100+, I could see the move to the upside accelerating.