JA Solar Holdings Co., Ltd. (ADR) (JASO)

moneycush (49.96) Submitted: 5/22/08 10:16 AM : Start Price: $22.79 JASO Score: -39.58

The company's financials look strong at first glance. The company has an okay profit margin. The company's cash balance, at least at the years end, is strong. One item that appears risky is the significant increase in this company's receivables balance from 2006 to 2007 - this could indicate that it is not getting the money for it's products or that it may be lowering its credit standards. Hard to know at this point, but something to keep your eye on. This company's operating cash results are negative, which makes this a potentially risky investment. The negative operating cash appears to stem mostly from the increase in receivables, which I already mentioned is something to keep watch over. Cash wise, this company is currently keeping an overall positive cash flow through its' investing and financing activities. Overall this is a company whose product I believe in and given the current market where the price of oil and gas is increasing exponentially, I think that this could position this company to take off in it's growth, as long as it is managing appropriately.

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