Investing in Chinese Solar - Suntech Power Holdings Co Ltd.

The hard beaten Chinese Solar stocks are attracting investors attention with crude oil price now above $90 per barrel.  Many of these Chinese Solar companies that used to be traded in double digits are now traded in single digit and low P/E ratio.  So far we've looked at JA Solar and LDK Solar, lets look at another solar stock today.  


Suntech Power Holdings (NYSE:STP) is a producer of silicon solar modules supplier of photovoltaic cells and photovoltaic modules with vertically-integrated facility in China.  The company's annual revenue rose for 7 straight years from $3 million in 2002 to $1.9 billion in 2008, rising more than 630 times during the 7 year expansion. The stock during the period rose to all time high of $85 per share around end of 2007 during the solar stock bubble.  Then for the next 52 weeks in 2008 shares continued to drop to as low as $6 per share near the end of 2008.  The seven year annual revenue growth also hit a road block in 2009 and slip to $1.7 billion.  For the first three quarters so far in 2010 the company has already earned $1.9 billion so should be on tract for a record high in revenue for the year.  So do expect investors to get back to the stock soon.


The technical chart shows the stock is back to bullish trend now with 20 day moving average crossed on top over 50 day moving average recently.  Based on the current trend, do expect the stock to hit at least $11 in the next 52 weeks.