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Wednesday, October 5, 2011

The Recovery of Solar: JKS, TSL, YGE

The whole Chinese Solar sector has been abandoned by investors for a long long time as reduction of government subsidy provides no future for the solar companies.  With investors expecting consolidation of the whole sector and some companies even going bankruptcy, it is not surprising to see these Chinese Solar stocks that used to be traded in double digits are now all at or near penny stock status.  

However for the last two trading sessions bargain hunters seemed to see opportunity and began to push solar stocks up with double digits gains.  Let's take a look at these Chinese Solar stocks and see if they are worth buying:

  • JinkoSolar Holding (JKS): the company actually is still seeing continuous revenue growth quarter by quarter and is still making money.  With P/E standing at 0.83, this should be a steal at $6.36 per share as the stock used to be over $40 a year ago.
  • Trina Solar Limited (TSL): although net income has dropped quite a bit the company managed to earned $11 million in the last quarter.  With P/E at 1.99 and current price of $7.53, this is a good time to get in for potential 100% gain as the stock used to be over $30 just 6 month ago.  
  • Yingli Green Energy Hold. (YGE): the company generates the most revenue among the Chinese Solar companies and is still making $375 million in the latest quarter.  With P/E at 2.2 and stock price at $3.73, this stock could easily double within a year.