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

Okay, so it's clear I picked this one way too early, but if I perceived long-term value at $49, you can bet I feel doubly confident in the lont-term value at $34! In real life, I've been buying in gradually, and have a cost basis of $42. I might be in the red on this one for a while, but this is a great company in a sector that makes just too much sense in a rising oil price environment. I believe solar will be a big part of the planet's solution to its energy woes, and China is th most de-coupled of all foreign economies... so I'm staying with STP for the long haul!!

Suntech remians the Chinese leader in PV solar, have worldwide contracts, have the capacity to fulfill their plans to also produce thiin film. With a forward P/E at half trailing P/E - this is the last cheap major solar buy available today. Get it under $45 while you still can.

Here are the bullet points:

* STP has a low PEG ratio
* They are building a new R&D facility at present. China with surpass Japan in R&D spending this year, so this is in keeping with the trend. China's R&D spending has doubled in 5 years, growing faster than the economy. This R&D should lead to manufacturing efficiencies and increased PVC efficiencies that will benefit STP's bottom line.
* They have locked in a long term silicon supply at competitive prices.
* They have recently inked major deals to supply PVCs to Spain and California.
* It appears the oil correction may be over due to winter supply demands in the US and OPEC production cuts, making alternative energy spending attractive.

Q1 earnings mediocrity is built-in the price. The 2nd half of 08 and 09 are going to be specacular for STP. I am in this industry and know STP, as one of the largest mfg, continues to significant traction in Europe and other parts of the world.

This is a Chinese manufacturer of solar panels. I am betting that China will consume a lot of solar product over the coming decade. This stock is presently priced for 30% growth but everyone is expecting higher. The technology and management look solid. Only concern- nano tech may result in cheaper, more effective solar products. If that happens, then buy the nano solar!!!!

I am swimming against the current on this one (4 stars as I write this). However, I think STP, although not just a hype like many other alternative energy plays, doesn't have that bright a future.

I'd like to see the earth powered by solar and wind energy as much as the next guy. However, I think we'll be eating green soylent before this dream comes true. I think solar panel will always stay marginal, for many reason.

First of all, sun is not distributed equally on this planet. One cannot just choose to buy and install solar panels on the roof of his house, and think there's gonna be enough power for the house. Even in sunny places like California and Florida, the sun actually goes down at night. Therefore, you panels will work only a couple of hours a day, in the best conditions, unlike fossil fuels/hydroeletric/nucular :) power plants, which can operate 24/7.

Then, you have another problem: these panels takes a lot of aceage to deliver enough power. If one could let these panels float all over the pacific ocean, solar energy might be a good solution for peak oil, but it's impossible. So what are you gonna do? Expropriate farmers to use their lands as solar farms? Land is getting more and more expensive all over the world as I write. Using most of it as solar farm is not that good a use when a huge proportion of the planet is starving to death.

Solar electricity is great when you're powering your pocket calculator. Not a viable alternative to powering a country with 1.2 bilion people.

Here's my favorite way to play the energy category.
STP is a Chinese solar chip company that is growing like a weed (sales are up over 100% per year for the last couple of years). What's even better, they're making money, making deals to improve their supply, and the renewable energy market is increasingly attractive to "green" homeowners, utilities, and governments around teh world. The company is expected to earn $1.18 in '07 and is projected to grow about 56% a year, so this $35 stock could close to double in the next year or so. I bought some in the 25 to 28 range and recommend purchase on dips.

good revenue increase, average roe but with no real cash flow ,could cause them to take on heave debt to grow or maintain recent growth rates. i really don't like it at this point.

my portfolio needs some chinese exposure and some alt energy exposure. here we have both! while i typically frown on solar companies, this one seems to be making solid business decisions. additionally, the P/E is within a reasonable range (25) for a growing company.

Solar is beginning to make economic sense, especially in areas without artificially manipulated energy costs. Plus, the US will always buy their under priced panels. Lastly, they are near large sources of waste silicon (used for panel manufacturing).

solar glut. will start looking attractive again when it gets under $8.

Slightly below the price of the original rec. I am excited about the prospects of this technology. As energy prices rise, the cost of sunlight is constant at 0 and the cost of converting it to energy declines steadily. Expect great things over the long term.

Chinese manufacturer of photovoltaic cells. Largest specialized lowest cost manufacturer. Low PEG

Solar power is growth industry. Suntech has signed several large contracts recently and have the advantage of Chinese labour to keep costs lower than competitors. Huge Asian market as well.

Solar plus China play. Penny has a persuasive argument. A huge deal in Spain says this is the time to get into Suntech. The sun isn't going away. China will be building out it's infrastructure and having solar or wind farms regionally makes more sense than thousands of miles of wires. Sort of the same thinking as cellular vs wireline service. If the US weren't so imbedded with our legacy systems, this technology would be more prevalant here. Needs more government subsidies to kick start it but I see more solar roofs and the technology is better than 5 years ago when I put my system in. Love seeing the meter run backwards.

STP is solidly entrenched in the world's largest industrial and consumer market (uhhh, China), and has committed to furthering growth in the US. While the current drop in oil prices may detract from the urgency of alternative energy solutions, the solar/wind/geothermal industry has caught momentum and will build over the next few years. A good investment, IMHO, that will will double the performance of the S&P 500

I imagine a conversation between a broker and his client goes like this:
Broker: You should buy STP
Client: Why?
B: They designs, develops, manufactures and market a variety of PV cells and modules. They also provides PV system integration services in China.
C: Wow, I know nothing about PV cells, I don't even know what it is, and I've never set foot in China, but the way you say it, it sounds just too good to be true.

A pricy P/E, but with the recent agreement that gives them the silicon wafers for the next five years, the stock should really outperform the S&P as production and earnings ramp upward.

The Solar Sector is poised to take off in the next few years and Suntech is very well positioned to take advantage of the opportunity.