Obama Win Shines on Solar Stocks - 25742 views

As far as I can figure, there are only two reasons you should be a seller at this time:

1. You need the cash now.
2. You found a better deal elsewhere.

I've got a candidate for the second: Yingli Green Energy (YGE), the Obama solar energy play.

Thinking for yourself is a thing of the past. Usually, I find the companies that are reliably outperforming the market fundamentally and buy them when they are dirt-cheap. This one certainly is dirt-cheap, it's set to grow ridiculously, and our new president-elect, Barack Obama, loves solar.

The best part is that, though the election's over, you’re not too late! Yingli's 52-week high is $41.50, and its 52-week low is $3.31, and it's on its way up. You’ll be lucky if you can get it today for less than $8 and tomorrow less than $10.

We don't need to beat ourselves up because we didn't realize earlier that Obama is already making buckets of money for people in solar stocks. We haven't missed our chance yet. These stocks will outperform everything this week and probably for the next four years.

I love Yingli. I did my homework on this one. According to its fact sheet, it's one of the world's largest PV-product manufacturers. You can do more homework here

If you want to do your homework on other solar stocks, here’s a list to get you started: the Claymore/MAC Global Solar Energy (TAN) ETF, Trina Solar (TSL), China Sunergy (CSUN), Canadian Solar (CSIQ), Suntech Power (STP) and JA Solar (JASO).
Author owns YGE.

By Glen Bradford

Posted on Nov. 5, 2008

By:FRANKLIN32

Date: 11/08/08

Technical Comments
n Chart pattern indicates a Strong Downward Trend. (See chart below.)
n Relative Strength is Bearish.
n Up/Down volume pattern indicates that the stock is under Distribution.
n The 50 day Simple Moving Average is falling which is Bearish.
n The 200 day Simple Moving Average is falling which is Bearish.
n Look for Support at 5.24

Positive Factors on YGE
Profitability:
n The Return on Assets (ROA) is 8.45. A high ROA is a good profitability
measure since it reflects the ability of management to produce profits from each
dollar of company assets. The average ROA for this Industry Group
(Elect.Distrib.) is 6.11.
Balance Sheet Strength:
n The Current Ratio is 2.55. Current ratios above 1 mean that a company’s shortterm
debts are less than its assets. The higher the ratio, the stronger the
company’s finances.
Growth Potential:
n The Earnings Per Share (EPS) growth rate of 34.88% is greater than the expected
next year EPS growth rate for S&P 500 of 8.56%.
Negative Factors on YGE
Valuation:
n The Market Edge PEG (Leading Price/Earnings (P/E) Ratio / Earnings Growth
Rate) ratio is 0.02. This ratio is the Leading P/E ratio divided by expected pershare
earnings growth over the coming year. A PEG ratio greater than 1 indicates
a stock may be overvalued or the market expects future EPS to be greater than
the EPS consensus. The average Market Edge PEG ratio for this Industry Group
(Elect.Distrib.) is -8.91.
Balance Sheet Strength:
n The Long-Term Debt/Capital is 17.41%. This indication of financial leverage
measures the extent of a firm’s capital that is provided by lenders. Below 25%
reflects well on a company’s financial stability. The average LT Debt/Capital for
this Industry Group (Elect.Distrib.) is 16.18%.

By:jgpack

Date: 11/06/08

You forgot ESLR,FSLR, and SPWRA...
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