Suntech Power Holdings Co., Ltd. (ADR) (STP)

GS751 (96.80) Submitted: 5/11/08 11:53 PM : Start Price: $42.96 STP Score: 8.75

Saw Florida Builder Green Thumb This and Thought I would take a look. Trading at 37x earnings is not too bad for a solar company. Since the Beginning of April this baby has been bouncing between 42 and 50. This is one of the better PV cell makers and they focus on Quality.


Pass Line
Profitable.
520 Million in cash versus 840 Million In Debt.
50 Megawatt plant coming online in late 2008.
The new Pluto cell manufacturing technology promises to deliver cell efficiencies that are 10%-15% better than competitors' offerings.
China = low-cost manufacturing base.
42 Million in Capital Expeditures

Don't Pass Line

The solar market depends on large subsidies for roughly 50% of total installed system costs.
If you think Emerging thin-film technologies are gonna lead to lower costs.
The company does a crappy job of aligning managements interests with shareholders.

I am not a fan of FSLR, YGE or many of the other solar companies but I like this play.

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