Oh No! Global Warming!
While everyone was breathing a sigh of relief over Greece's about face on the referendum and the ECB's surprising interest rate cut, Yahoo! News published an alarming article on the global output of carbon dioxide and subsequent global warming:
"The new figures for 2010 mean that levels of greenhouse gases are higher than the worst case scenario outlined by climate experts just four years ago."
So what's the best play for these alarming developments?
Personally, although the solar energy sector has been struggling and volatile in recent months, I would recommend JinkoSolar (JKS). Unlike its American counterparts, it can compete effectively in the global and our domestic marketplace by flooding us with cheap imports, to the bane of once-stellar companies such as First Solar (FSLR). However, this can also hinder JinkoSolar's dealings in the U.S.; just recently, Chinese solar stocks were crushed when a consortium of seven American solar panel makers filed a petition with the U.S. Department of Commerce about the unfairness of the advantage of their Chinese counterparts.
Although JinkoSolar's estimate revisions are down and its EPS estimate percent change this quarter compared to that of a year ago is down 71%, Jinkosolar has delivered a 35.8% earnings surprise from last quarter. Also, the average EPS Growth of JinkoSolar's last three quarters is 243%. Its 3 Year EPS Growth Rate is 113% and its Sales % Change from the same quarter of last year is 164%. Its 3 Year Sales Growth Rate is up 65%, and its EPS % Change from last quarter compared to the same quarter of last year is up 54%.
However, I would advise caution in solar stocks. As stated in a recent Fool article by Anders Bylund, be prepared for a "thrill ride" if you decide to invest in solar stocks. Back when I first recommended JinkoSolar in October of last year around the $29-30 range, it increased to $38 before going on a downward decline to the paltry $8.69 it is as of today.
So what are your plays on this increasingly warming world?