Trina Solar Limited (ADR) (TSL)

JSB8000 (97.41) Submitted: 3/06/08 3:38 PM : Start Price: $33.85 TSL Score: -2.55

Trina Solar is booming... 4th quarter 08 earnings rocketed 240% to 62¢/sh from 28¢/sh in the previous year. Full year 08 earnings are expected to grow by 120%, and 09's earnings are predicted to grow by another 20% to 46%, depending on whom you believe. Various analysts are predicting 1-year price targets of between $63 and $70/share, which would be 88% to 109% higher than today (3/6/08).

Consensus estimates for long term growth (3 - 5 year) range from 40% to 75% per year. At today's price of $33.50, TSL's trailing PE is only 31, and shares are selling at only around 8 times next year's earnings. Morningstar calculates TSL's PEG ratio at only .1 ... as low as any stock I've ever seen. Trina could be a rare bargain...

Finally, if one wants to see the future of solar stocks and alternative energy in general, take a look at the current political discussion. Even George W. Bush is now conceding that global warming is a growing threat to humanity. All three major candidates for president (John McCain, Hillary Clinton and Barak Obama) are on the record as favoring major new initiatives to boost the use of alternative energy. In addition, next year's Congress is likely to be dramatically more pro-alternative energy than the current one. Companies like Trina and Sunpower (SPWR) may be the new Microsoft's and Apple's of the next decade.

Report this Post Replies: 0 | Reply