Great solar play

Hold - Price 16.19 on May 11
by Wedbush Morgan

Third-quarter earnings per share of three cents, versus 17 cents a year ago, were in line [with our estimate], despite lower solar-product revenue...down by 5.7%...due to lower-than-expected shipment volumes. With strong cost controls and reductions in production, operating margin offset the weaker top line. Our 14 price target (P/E of 12.7 times) is down from 16, as we continue to apply the low end of our 10-to-20 times solar price/earnings multiple. Our lowered fiscal- year 2010 EPS estimate of $1.10, down from $1.63, adjusts for continued weak demand, planned manufacturing furloughs and financing risk, offset by the niche product targeted for commercial rooftops and countries with high government incentives. Shares could trade nearest book value of 16 per share, until positive trends related to demand and financing return. Market cap: $794 million.

Nickel Batery Mfg exposre

Shares of the solar-panel makers First Solar and Energy Conversion Devices look vulnerable as silicon prices drop, narrowing their cost advantage versus silicon rivals.

Najarian said he liked energy names such as Energy Conversion Devices(ENER), and First Solar(FSLR).

3 Stocks I Saw on TV: Dan Fitzpatrick examines three stocks viewed on Fast Money. Today's stocks include Schlumberger, Energy Conversion Dev. and Monsanto.
Click here to watch the video.

green

solar

tradeable

If you’re looking ahead, Pete Najarian says look at First Solar [FSLR], Energy Conversion Devices [ENER] or Eastman Chemical[EMN]. "All those companies are well run and could have upside."

Held back until auto industry needs their batteries

i have believed in solar systems formany years now all solar companys are going up but energy conversion is staying the same

Coghill Capital cut its stake to 3.06 million shares (7.6%) from the 3.95 million (9.8%) it had reported owning on Sept. 4.

From Barron's 6-25-07:

"Coghill Capital Management lowered its holdings to about 3 million shares (7.5%), from the 3.66 million (9.2%) reported on June 11."

Looks vulnerable to a market shakeout.