diagonal
spacer

SOLF – Solarfun – Cheapest Solar Around!

By fous on Jan 08, 2008

For some reason i’ve had a mental block on buying any solar stocks when they had been posting huge gains. Well lets just say i’m stupid, but mental block sounds a little better for my own self-esteem though haha ;)

SOLF definitely looks the best to me for having more room to run compared to some of the other big solar names out there on a valuation and forward growth basis. Lets take a look at some of the other forward P/E’s.

FSLR – 134x
STP – 41x
JASO – 36x
TSL – 19.44x
** SOLF – 5x **

So as you can see SOLF on a forward earnings basis is by far the most attractive of any of these solar stocks that have been hot on the prowl lately. Other active solar stocks such as ASTI, CSUN, and AKNS are all projected to be unprofitable in the upcoming year though are moving towards profitability so all are probable to move north along with the industry in general that is growing 30-40% annually.

Here are the analyst estimates from yahoo finance for price targets:

PRICE TARGET SUMMARY

Mean Target: 59.09
Median Target: 59.09
High Target: 103.17
Low Target: 15.00
No. of Brokers: 2

The Average estimate for the upcoming 2008 projects SOLF to report a staggering 6.88 eps on revenues of $4.33 billion. The industry average for the semiconductors P/E ratio is currently trading at 26x earnings. For SOLF to be fairly valued among its peers we could theoretically say SOLF should be trading around $178.88/share found by multiplying the industries PE by the 6.88 forward earnings estimates. Who knows, given some time we might see it trade that high. But as a short term trader this upward valuation appears to gives us a prime opportunity to capitalize on short term momentous gains.

Technically i was hoping to have a chance to buy some shares on more of a pullback to the 13ema but the momentum in solar and the under valuation of SOLF robbed me of that opportunity as of yet. Today SOLF broke out of its short term pennant continuation pattern suggesting a further move to the upside and continuation of this bullish trend.

When comparing SOLF to its peers it looks like its the cheapest and smartest route to take if your gonna diversify your portfolio within the solar stock industry. I took today opportunity on the technical breakout to purchase some shares at 34.25.

solf1.png

spacer
This entry was posted on Tuesday, January 8th, 2008 at 11:16 pm and is filed under Stock Charts. You can skip to the end and leave a response. Pinging is currently not allowed.


26 Responses to “SOLF – Solarfun – Cheapest Solar Around!”


By Allie Baldwin on January 10th, 2008 at 1:22 pm

I can’t believe I never got in on this one. I don’t know if I couldn’t find it or what. It is truely one of the best solar companies to get in on. The price is also kind of steep, depending on your budget. I would’ve gotten this one if I had wizetrade. Dangit!

By Patrick Ali on January 10th, 2008 at 9:26 pm

Target:33.20

By Tansaj on January 14th, 2008 at 10:10 am

Its 24 right now !!!

By Aaron on January 15th, 2008 at 6:26 pm

Those solar stocks got a whole lot cheaper today. This trade has really been unraveling of late. It seems to me that some of these stocks could be great buys down the road, but this market has gotten too tough to buy these names right now.

By Zigzo Blogz on January 16th, 2008 at 5:35 pm

hey guys, i think ur RSS feed has stopped updating?!?! sorry to take this off topic but i check the feed daily!

By Cameron Fous on January 16th, 2008 at 5:48 pm

Solars have been hammered lately but i guess this was warrented with such a huge run. Momentum can only last for so long. Hard to call a bottom but these solars have a bright future imo and bargain buying will come around at some point. I closed this trade for a 5.55% gain.

for more info visit my website http://www.thetechnicaltrader.net

By Allie Baldwin on January 18th, 2008 at 1:47 pm

If you didn’t buy this stock, you are crazy! I bought it before it shot up. So my profits are huge now. Thanks wizetrade.

By JRK on January 23rd, 2008 at 1:41 pm

Way to pick a top on SOLF!

By Anonymous on January 28th, 2008 at 2:46 pm

and now you lost about 50%!

By Cameron Fous on January 29th, 2008 at 2:00 am

Lol i did pick a pretty good top on this one huh! And i didn’t lose anything on this trade i actually sold it for a 6% gain chief if you knew how to read. Stock picking is hit or miss. You run your analysis and go with the flo and diversify. Not every stock is gonna go your way. When you trade, you approach the trade as if your analysis is wrong. And play it defensively .

By Anonymous on January 29th, 2008 at 10:14 am

call yourself an analyst..

By tony on January 31st, 2008 at 8:17 am

Just try http://www.easystockalerts.com and see..you can customize what kind of news you receive from press releases, insider trades to stories that mention your stock in blogs…

By Morpheus on February 3rd, 2008 at 1:40 pm

I’m new into trading but I consider myself an “Active Trader”, so I can’t see buying Solar Energy(SOLF) at this point in time until the stock prices begin to move in the positive up-swing.

By daniel79 on February 4th, 2008 at 12:16 pm

Sign-up at http://www.easystockalerts.com to be ALERTED to any Insider Trades BEFORE they appear on the web! This can be market moving news which can make you Mad Money.

By isabella7w7 on February 6th, 2008 at 11:22 am

Subscribe to http://www.easystockalerts.com Now & Get The News Before Everyone Else! Have you ever want to see your stock news before it even appears on yahoo? Well, then be alerted before it appears on the web?

By lookdeeper on February 8th, 2008 at 1:51 am

You gotta stop reading Yahoo financial data. That $6.88 figure in next year earnings in in Yuan, not dollars. Thats around 88 cents, making SOLF worth about 22 dollars w/25 pe in a year. A quality solar China play is STP. Nevertheless, it got halved along w/others. It’s a jungle out there now. CHME.ob looks to retrace 2 to 3 and fundies screaming. Have fun out there, and remember, wear a cup. ; )

By jacabs on February 8th, 2008 at 11:13 am

Sign up at http://www.easystockalerts.com for free to see your stock news before it breaks to the rest of the public! Just try it out for a week and see what you think.

By sailorman28 on February 9th, 2008 at 9:39 pm

I strongly agree with what you said. It is imperative that we focus
all of our efforts on finding the true “fundamentals” of stocks
before we buy/sell. With todays struggling economic situation, it is
hard to judge what is “undervalued” because almost everything is, but
make investments based on the long term. That is, if you buy cheap
today, hold for at least 3-6 months because it will take time for
stocks like Apple and Microsoft to turn around! I was using
http://www.swiftstocks.com this week in order to follow these two stocks and
it is amazing how quickly bad news effects stocks. The minute negative
news came out for Apple, the stocks price plummeted because people are
scared! Anyways, buy and hold long. You will not be disappointed!
Cbrown

By sean22 on February 12th, 2008 at 11:40 am

http://www.easystockalerts.com will keep you abreast on the latest news on stocks you follow. You can get e-mail and RSS alerts when a stock you are tracking has news, an SEC filing, or a press release. We also monitor some of the top financial blogs for opinions on your stocks.

By jacabs on February 22nd, 2008 at 11:32 am

Just try http://www.easystockalerts.com and see..you can customize what kind of news you receive from press releases, insider trades to stories that mention your stock in blogs…

By future1 on February 25th, 2008 at 7:21 am

Learn as you go but write it all down. Had I known not to buy solar when oil goes up!!!
SOLF has been a great money-making partner to have on your side. My last purchase was in CSUN and the next day oil spiked to near $100 a barrel and suddenly no one was interested in solar. Bought CSUN at just $8.60 a share but now it is down to $7.22 this morning.

By ethan_hill on February 25th, 2008 at 11:43 am

I recently came across a new site http://www.easystockalerts.com with lots information and updates. You can get all recent news and information relating to the stock you follow from this site. Site also monitor monitor some of the top financial blogs for opinions on your stocks.

By todd on February 27th, 2008 at 8:51 pm

I guess SOLF wasn’t very cheap after all LOL

By Wizetrade Community on February 27th, 2008 at 9:06 pm

With the democrats about to take office, solar is something to definately buy into. They want to invest a lot into solar energy specifically. I don’t even need wizetrade to tell me that.

By tip on May 20th, 2009 at 7:52 am

You are doing a wonderful thing here on the Internet. I wish you the very best. Kindest regards.

Leave a Comment


Comments: