Investing Chinese Solar - Trina Solar Limited

The turmoil in Egypt causes oil price to surged to near $100 per barrel.  As a result many Chinese solar stocks such as LDK Solar, Solarfun, JA Solar, Yingli Green Energy, Suntech Power and ReneSola are on the rise again today.  After the recent correction on Chinese solar stocks, this is probably a good time to get back to these stocks again.  


One other Chinese solar company worth looking at is Trina Solar (NYSE:TSL).  This solar energy product manufacturer has clients across Europe, Asia and North America and earns $845 million per year with $97 million net income in 2009.  Compared to other Chinese solar companies which saw a dip in earning in 2009 compared to 2008, Trina Solar actually had a slightly better number in 2009 compared to $831 million annual revenue in 2008.  In addition the surge in demand of solar energy product has already brought in $1.2 billion in revenue for the first three quarters of 2010 with record breaking net income of $164 million.  So do expect a record breaking earning for the year of 2010 when the company announce it on February 22.  


The technical chart shows near term weakness with KD line falling but for the long term the stock maintain bullish trend with 50 day moving average still above 200 day moving average. So for the near term expect the stock to drop to the $24-$25 range before going up again.

Investing in Chinese Solar - ReneSola Ltd

ReneSola (NYSE:SOL) was upgraded by Zacks Investment Research recently to "Outperform" with a $12 price target.  In December Goldman Sachs(NYSE:GS) also gave RenaSola a "Buy" rating with a $11 price target.  The analyst saw potential recovery in the solar market and Chinese Solar companies have competitive edge with low cost and government subsidies.  The company experienced rapid growth from 2005 to 2008 but stumbled the following year with 23% drop in revenue and $72 million net loss.  For the first three quarters in 2010 the company does see great improvement with revenue on track to double with record breaking profit of more than $100 million already.  The technical chart also shows bullish trend with 20 day moving average now on top over 200 day moving average. 


The company is expected to report the 2010 fourth quarter earning on March 1 and with strong earning expected we should see stock hitting the target price of $12 at minimum.

For Profit College Bargain Hunting - Education Management Corporation

Shares of many US based for-profit colleges have been under attack last year due to government probe.  The government probes into the for-profit colleges scared away the investors and drove down share prices of the entire group.  However this may be exactly the right time to invest in these stocks as the wise investors alway do.  So far we've already looked at Apollo Group , DeVry and Corinthian College.  Today lets look at another major player in the for-profit colleges.

Education Management Corporation(Nasdaq:EDMC) is a Pittsburgh, Pennsylvania based career-focused education provider with approximately 158,300 students. The school offer a range of academic programs in the creative and applied arts, behavioral sciences, education, health sciences and business fields.


The company's financial looks really strong as the company's annual revenue growth consistently 20% every year since 2007 and has almost doubled from $1.3 billion in 2007 to $2.5 billion in 2010.  Net income during the same period surged more than 400% from $32 million to $168 million.  Looking at the stock, the technical chart indicates a bullish trend as 50 day moving average has crossed on top over 100 day moving average with KD line on the rise.  With recovery of education stocks underway we should see EDMC hitting $20 very soon.

Investing in Chinese Solar - Yingli Green Energy

The hard beaten Chinese Solar stocks are now getting 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.  o far we've looked at JA Solar and LDK Solar, lets look at another solar stock today.  


Yingli Green Energy (NYSE:YGE) designs, manufactures, and sells photovoltaic modules systems in Germany, Spain, Italy, Greece, France, South Korea, China and US.  The company's annual revenue for the past few years rose rapidly from $1.6 billion in 2006 to $7.5 billion in 2008, rising 370% in three years.  Compared to the other Chinese Solar companies such  JA Solar and LDK Solar, Yingli Green Energy is much bigger in terms of revenue earned.  The company's net income during the same period also rose from $216 million in 2006 to $653 million in 2008.  2009 was also a tough year but the annual revenue only dropped slightly to $7.2 billion.  However the company took a hit with a net loss of $531 million.  2010 so far looks promising as the company already earned $8.4 billion in revenue for the first three quarters on track to break the $10 billion mark, a new record for the company.  In addition with $863 million in net income for the first three quarters of 2010 Yingli Green Energy could see a all time record net income of $1 billion, dwarfing the other Chinese Solar companies.


The technical chart shows positive signal with 20 day moving average about to crossed on top over 50 day moving average with KD line at 80 and still rising.  With such strong revenue and technical trend this could be a $15 stock easily for this year.

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.

Investing Chinese Solar - Solarfun Power Holdings

The hard beaten Chinese Solar stocks are attracting investors attention again with crude oil price has gradually climbed back above $90 per barrel.  Many of these Chinese Solar companies that used to be traded in double digits are getting attractive again with many of them 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.  


Solarfun Power Holdings (Nasdaq:SOLF) is a supplier of photovoltaic cells and photovoltaic modules with vertically-integrated facility in China.  The solar cell maker only earn annual revenue of $630 million in 2006 but the next year quadripled to $2.4 billion and doubled the following year to its peak to $4.9 billion in 2008.  The global financial storm brought the revenue down a little bit to $3.7 billion in 2009 and the year 2010 should be record high with earning of $5.4 billion so far for the first three quarters.  And after consecutive years of net loss in 2008 and 2009, Solarfun should swing to net income in 2010 as for the first three quarters the company has already earned $386 million in net income.  


Shares of Solarfun Power used to trade as high as $38 back in late 2007 early 2008.  The stock sank to all time low of $2 per share in 2009 during the financial crisis and has gradually climbed back  toward double digit this year.  At $9.26 per share and market cap of $538 million market cap, the stock is still attractive with P/E ratio of 9.8.  The technical chart shows the stock is about to swing back to uptrend as 20 day moving average is about to cross on top of 50 day moving average.   KD lines also shows positive signal as both KD lines are going up.  At the current trend expect the stock to keep going up for the next two to three months.

Investing Chinese Solar - JA Solar Holding

The high flying Chinese Solar stocks used to be traded in the high $40 to $50 range back in 2008 as oil price was in triple digits.  However following the energy bubble burst, many of these Chinese Solar stocks were traded in single digit and out of the investors radar for almost 2 years.  However as crude oil price has gradually climbed back above $90 per barrel and heading to triple digits again, this is probably time to revisit the forgotten Chinese Solar companies.


JA Solar Holding (Nasdaq:JASO) is a six year old company developing solar energy product with solar cell manufacturing facilities throughout China.  Despite drop in annual revenue from $5.5 billion in 2008 to $3.8 billion in 2009, the year 2010 could be a record breaking year with $7.9 billion in revenue already for the first three quarter, about twice as much as the previous year and 40% more than the previous record high in 2008.  Net income for 2010 is also on track to set new record with $971 million so far for the first three quarters compared to $128 million net loss in 2009 and $479 net income in 2008, the previous high when shares were traded as high as $28 per share.


Shares of JA Solar are traded at $7.54 per share with $1.27 billin in market cap and a very attractive P/E ratio of 7.32.  The technical chart shows bullish trend for the long term as the stock is still traded above 200 day moving average.  Although the stock has dropped below 50 day moving average, buyers come back again today as the stock touches 20 day moving average showing support at that level.  If JA Solar was worth $27 in 2008, with stronger financial do expect double digits of share price coming soon this year.

Jewelry Stores On The Move - Zale Corporation

Just last Week, Soleil Securities research analysts downgraded Zale Corp (NYSE: ZLC) from a “hold” rating to a “sell” rating in a research note issued to investors on Monday.  However today the jewelry stores operator saw its stock skyrocketted more than 30% after a strong 2010 Holiday season in which revenue for the two-month period totaled $533.1 million, up 8% from $493.7 million last year. 


Since reaching 5 year high of $30 per share in 2008, shares of Zale Corp have been beaten down badly following the global financial crisis, down to as low as $1 per share the following year.  Its annual revenue is still on the decline, from $1.8 billion in 2009 to $1.6 billion in 2010 for period ending July 31.  However with yesterday's report for November and December sales, we should see a very positive result for the quarter ending Januarly 31.  Many investors probably see the change in the direction of the stock and rushed in with buy orders.  The technical chart also indicates a positive trend with 50 day moving average went on top over 200 day moving average recently, forming a bullish signal called Golden Cross.  Could this be finally the time for the stock to go back to its glory days of $30 per share?

Investing Chinese Solar - LDK Solar

The high flying Chinese Solar stocks used to be traded in the high $40 to $50 range back in 2008 as oil price was in triple digits.  However following the energy bubble burst, many of these Chinese Solar stocks were traded in single digit and out of the investors radar for almost 2 years.  However as crude oil price has gradually climbed back above $90 per barrel and heading to triple digits again, this is probably time to revisit the forgotten Chinese Solar companies.


LDK Solar (NYSE:LDK) is the world's leading solar wafer producer with annual production of 18,000 metric tons expected this year.  Although the company stumbled in 2009 with a net loss of $234 million for that year, the first three quarters of 2010 have been outstanding with $145 million net income accumulated already.  Revenue for the first three quarters of 2010 have has also reached $1.56 billion, 50% more than the entire year LDK Solar made in 2009 and almost the same as the previous high of $1.6 billion in 2008 when the stock was traded above $50 per share at one point.  


LDK Solar yesterday raised outlook for the fourth quarter of 2010 and fiscal year 2011 to $910 million and $3.7 billion respectively.  This would put annual revenue for 2010 around $2.5 billion, 150% more than 2009 and 56% more than 2008.  LDK is currently traded at $12.2 per share with P/E ratio of 12.44 and market cap of $1.6 billion.  The technical chart shows positive signal with stock traded above 50 day and 200 day moving average while KD lines are on the rise.  With strong fundamentals, we should this LDK reaching $20 per share soon.

Rare Earth Metals Investment - China Shen Zhou Mining & Resources

The speculation of the rare earth metals stocks are driving up share prices of companies such as Molycorp and Rare Element Resources.  The recent announcement that China is cutting its rare earth metal export by more than 10% sparked another rally of these rare earth metal stocks.  Concerns of possible bubble pop have then took over and drove down the price.  So this could be the time to look at these high speculative stocks again.  


Another possible rare earth metal player that investors identified is China Shen Zhou Mining & Resources Inc (AMEX:SHZ).  Three months ago back in October of 2010, SHZ used to be a penny stock traded around $1 per share.  Shares surged to $4 per share in late October for no apparent reason and stay in the $2 to $4 range for the next two months until recently as the company has been identified as a possible rare earth metal player and send the stock price to as high as $10.84 earlier this week.  The stock is currently traded at $9.23 with P/E ratio of 41 and market cap of 258 million.  The technical chart shows strong bullish trend as all 20 day, 50 day and 200 day moving averages are going up while KD line stay high around 80.  The stock is still way above the 20 day moving average of $6 so it would be safer to wait for the stock to correct back to at least the 20 day moving average line.

For-profit College Under Attack - Career Education Corp

Shares of many US based for-profit colleges have been suffering for a while due to government probe of questionable student recruiting practices and low graduation rate.  The government probes into the for-profit colleges scared away the investors and drove down share prices of the entire group.  However this may be exactly the right time to invest in these stocks as the wise investors alway do.  So far we've already looked at Apollo Group , DeVry and Corinthian College.  Today lets look at another major player in the for-profit colleges.

Career Educaiton Corp(Nasdaq:CECO) is another major education provider running over eighty for-profit college campuses with approximately 90,000 students throughout US, Canada, France and UK.  The schools that CECO operates includes California Culinary Academy, Brown College, the Harrington College of Design, the Brooks Institute of Photography, Brooks College, the Katharine Gibbs Schools, American InterContinental University, Colorado Technical University, Sanford-Brown Institutes and Sanford-Brown Colleges, Collins College, Lehigh Valley College, Briarcliffe College, International Academy of Design and Technology and Western School of Health and Business Careers.  


The company's annual revenue of $1.76 billion in 2009 is comparable to Devry and Corinthian which make $1.7 billion and $1.9 billion respectively.  However instead of the rapid growth like the other two for-profit college operators, Career Education Corp's annual revenue actually dropped by $40 million from 2006 to 2009 even though annual income rose 76% during the same period from $46 million to $81 million.  Nevertheless the school operator should have a record breaking year in 2010 as its net income for the first three quarters of 2010 has already reached $145 million, an 80% gain in a year already.  The annual revenue is also on track to exceed the previous year's figure. 

Shares of CECO have not been doing well for the past 8 months going from $35.8 in April of 2010 to $21.14 recently, losing 40%.    However the technical chart shows very bullish signal as 20 day moving average has just crossed above 50 day moving average recently forming Golden Cross.  The stock should continue to go up at least till the 200 day moving average line of $24.

For-profit College Under Attack - Bridgepoint Education Inc

Shares of most US based for-profit colleges have been suffering for the past 52 weeks due to government probe of questionable student recruiting practices and low graduation rate.  The U.S. Government Accountability Office(GAO) reported on August 4, 2010 that the undercover testing at 15 for-profit colleges found that 4 of the colleges encouraged fraudulent practices and all 15 made deceptive or questionable statements.  The continues governemnt probes into the for-profit colleges scared away the investors and drove down share prices of the entire group.  However this may be exactly the right time to invest in these stocks as the wise investors alway do.  So far we've already looked at Apollo Group , DeVry and Corinthian College who are the three top players among the for-profit colleges.  Today lets look at a smaller but rapidly growing player in this group.

Bridgepoint Education Inc. (NYSE:BPI) owns Ashford University and University of the Rockies with enrollment of 77,179 students.  Although its $454 million annual revenue of 2009 is not as big as the other major education providers such as Apollo Group($5 billion) and Corinthian College($1.76 billion), the growth rate is the fastest with 1500% gain in 4 years from $28 million annual revenue in 2006.  And after the company swung into annual income of $3 million in 2007, the net income continue to surge in the next two year to $47 million in 2009, gaining 1400% in just two years. So far for the first three quarters in 2010 Bridgepoint Education have already earned revenue of $519 million and net income of $100 million, far exceeding the annual total in 2009.

Shares of Bridgepoint Education have been almost flat for the past 52 weeks going from $15 of 2010 to $17.5 at the moment, a modest 7% gain despite its strong financial growth.  The stock is traded at a low P/E ratio of 8.76 with market cap of 919 million.  The technical chart shows positive trend as 20 day moving average is on top of 50 day moving average.  However with KD lines pointing downward do expect selling pressure in the mean time.  If the stock is able to hold the 50 day moving average at $16 expect buyers to come back.

For-profit College Under Attack - Corinthian Colleges (Nasdaq:COCO)

Shares of most US based for-profit colleges have been suffering for the past 52 weeks due to government probe of questionable student recruiting practices and low graduation rate.  The U.S. Government Accountability Office(GAO) reported on August 4, 2010 that the undercover testing at 15 for-profit colleges found that 4 of the colleges encouraged fraudulent practices and all 15 made deceptive or questionable statements.  The continues governemnt probes into the for-profit colleges scared away the investors and drove down share prices of the entire group.  However this may be exactly the right time to invest in these stocks as the wise investors alway do.  So far we've already looked at Apollo Group and DeVry who are the leaders among the for-profit colleges.  Today lets look at another major player in this group.

Corinthian Colleges (Nasdaq:COCO) is the operator of 89 schools across 24 states and 17 schools in Canada with enrollment of 86,088 students .  Corinthian College's annual revenues have been rising rapidly for four straight years from $919 million in 2007 to 1.76 billion in 2010, gaining 92% in 3 years.  Its annual income grew even more from $7 million in 2007 to $146 million in 2010 resulting in a monstrous 1900% surge in 3 years.  And despite the recent government probe the company still reported a strong quarterly earning with a record $501 million in quarterly revenue and $33 million net income.  

Shares of Corinthian College have been miserable for the year losing 62% of its value since January 2010.  The stock is now traded at the level back in 2000 with a ridiculously low P/E ratio of 3.09 at market cap of 430 million.  Normally at such low P/E ratio you would expect crazy buying yet due to uncertainty of the probe most investors kept staying on the sideline.  The technical chart indicates a strong bullish signal with 20 day moving average just crossed on top of 50 day moving average to form a Golden Cross.  KD lines also show positive signal as both lines are rising.  This is definitely a stock overlooked by most investors and should be doing really well for the year.  The company's financial remains strong and $5 per share is definitely a huge discount.

For-profit College Under Attack - Devry Inc

The US based for-profit colleges have been under attack by both the investors and the government due to questionable student recruiting practices and low graduation rate.  The U.S. Government Accountability Office(GAO) reported on August 4, 2010 that the undercover testing at 15 for-profit colleges found that 4 of the colleges encouraged fraudulent practices and all 15 made deceptive or questionable statements.  The continues governemnt probes into the for-profit colleges scared away the investors and drove down share prices of the entire group.  However this may be exactly the right time to invest in these stocks as the wise investors alway do.  Yesterday we looked at Apollo Group who is the leader among the for-profit colleges.  Today lets look at another one of the major players in this group.

DeVry Inc(NYSE:DV) is the parent company of several education institutes including DeVry University, Ross University, Carrington College, Chamberlain College of Nursing and Western Career College  with DeVry University being the largest with more than 80,000 students per year.  DeVry's annual revenues have been on steady climb from $933 million in 2007 to 1.9 billion in 2010, more than doubled in 3 years.  Its annual income even better and almost quadrippled from $76 million in 2007 to $280 million in 2010.  Even the most recent quarterly report saw no sign of pulling back with 20% revenue and 35% net income increase compared to the same quarter of previous year.

Shares of Devry (NYSE:DV) have not been doing well this year.  The stock went from $56 in January of 2010 to $48 at the end of the same year losing 14% while all major indices were up in double digits for the same period.  The stock is currently trading at P/E ratio of 11.62 with market cap of $3.37 billion. The technical chart actually shows potential upside as the 20 day moving average has just crossed on top over 50 day moving average with KD line now sitting at 80, an indication of bullish trend.  As the year of 2011 begins with optimism this may be the time that the smart investors jump back to DV.