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FSLR, SOPW, RSOL, LDK, ESLRD, ENER, Solar Stocks 19.29% overvalued

^{Published on 2011-01-26 11:31:29 - WOPRAI}
 

January 26, 2011 / M2 PRESSWIRE / BUYINS.NET / http://www.squeezetrigger.com is monitoring the Solar sector and these stocks are the most undervalued as of today. FIRST SOLAR INC (NASDAQ:FSLR), SOLAR POWER INC (OTCBB:SOPW), REAL GOODS SOLAR INC-CLASS A (NASDAQ:RSOL), LDK SOLAR CO LTD -ADR (NYSE:LDK), (:ESLRD), ENERGY CONVERSION DEVICES (NASDAQ:ENER) are all expected to go Down as they are overvalued according to industry standard valuation metrics. The valuation model employs a three-factor approach to stock valuation using fundamental variables--the company's trailing 12-month Earnings-Per-Share (EPS), the analyst consensus estimate of the company's forecasted 12-month EPS, and the 30-year Treasury yield--to create a highly accurate reflection of a company's fair value.

The chart below displays the projected Fair Value and Valuation discount/premium of the most undervalued stocks in the highlighted industry group:

     Symbol     Company Name                        Last Close     Fair Value     Valuation                   Industry               
     FSLR       FIRST SOLAR INC                     150.62         126.26         19.29% overvalued           Solar                  
     SOPW       SOLAR POWER INC                     0.41           0.86           52.58% undervalued          Solar                  
     RSOL       REAL GOODS SOLAR INC-CLASS A        2.78           2.93           5.04% undervalued           Solar                  
     LDK        LDK SOLAR CO LTD -ADR               13.37          19.35          30.89% undervalued          Solar                  
     ESLRD                                          2.53           4.27           40.82% undervalued          Solar                  
     ENER       ENERGY CONVERSION DEVICES           4.21           16.84          75.00% undervalued          Solar                  

Here are some of the variables that are utilized when calculating the Fair Market Valuation of a stock: Long-run EPS growth rate, Duration of Business-growth-cycle, Volatility of EPS growth rate, Systematic or beta risk of the firm, Correlation between the firm's EPS and the interest rate environment, EPS growth volatility, Dividend payout ratio, Buffer earnings, Interest rate related criteria: Interest rate (30 year yield) long-run level, Duration of interest rate cycle, Interest rate volatility. The Fair Market Valuation uses 12-month historic and forecasted EPS values and the current 30-year treasury yield as primary determinants. When calculating risk/return values such as the Sharpe ratio, the historic periods used are five years.

Some expected results of the Valuation Model are: the valuation of a stock increases in a declining interest rate environment. Increasing current and/or projected EPS will produce a higher Valuation. While long-term EPS growth would produce a corresponding long-term Valuation increase, concomitant long-term interest rate increases would offset EPS growth and depress the Valuation. The shorter a company's own business cycle, the higher its stock Valuation will be.

FIRST SOLAR INC (NASDAQ:FSLR) - First Solar, Inc. designs, manufactures, and sells solar electric power modules using a proprietary thin film semiconductor technology. It also designs, constructs, and sells photovoltaic (PV) solar power systems. The companys solar modules employ a thin layer of cadmium telluride semiconductor material to convert sunlight into electricity. Its integrated solar power systems activities include the project development; engineering, procurement, and construction services; operating and maintenance services; and project finance. First Solar, Inc. sells its products to solar project developers, system integrators, and operators of renewable energy projects in the United States, Germany, France, and internationally. The company was formerly known as First Solar Holdings, Inc. and changed its name to First Solar, Inc. in 2006. First Solar was founded in 1999 and is headquartered in Tempe, Arizona.

SOLAR POWER INC (OTCBB:SOPW) - Solar Power, Inc., together with its subsidiaries, engages in designing, manufacturing, integrating, installing, and selling photovoltaic panels or modules, and balance of system components for commercial and residential customers primarily in the United States. It also manufactures and sells related hardware and cable, wire, and mechanical assemblies for the transportation and telecommunications markets. The company sells its products and services through its sales force in California, as well as through sales representatives in Europe, Asia, and sections of the United States. It also markets its residential products through a dealer network under the Yes! brand to integrators. The company was founded in 2005 and is headquartered in Roseville, California.

REAL GOODS SOLAR INC-CLASS A (NASDAQ:RSOL) - Real Goods Solar, Inc. operates as a residential and commercial solar energy integrator in California and Colorado. The company offers various turnkey services, including design, procurement, permitting, build-out, grid connection, financing referrals, and warranty. It installs residential and small commercial solar energy systems that are between 3 kilowatts and 250 kilowatts output, as well as larger commercial projects of up to 5MW output. The company was founded in 1978 and is based in Louisville, Colorado. Real Goods Solar, Inc. is a subsidiary of Gaiam, Inc.

LDK SOLAR CO LTD -ADR (NYSE:LDK) - LDK Solar Co., Ltd., through its subsidiaries, engages in the manufacture and sale of multicrystalline solar wafers to the manufacturers of solar cells and solar modules in the Peoples Republic of China and internationally. The company offers multicrystalline solar wafers between 180 and 220 microns in thickness. It also provides wafer processing services to monocrystalline and multicrystalline solar cell and module manufacturers. In addition, the company manufactures polysilicon materials, which include ingots and polysilicon scraps. It has a joint venture agreement with Q-Cells SE to develop solar power generation systems. The company also has a partnership with Uni Land S.p.A. to develop and construct PV plants totaling 20 megawatts; and with Global Power Resources Ltd. to develop and construct PV plants totaling 100 megawatts. LDK Solar Co., Ltd. was founded in 2005 and is headquartered in Xinyu city, the Peoples Republic of China. The company operates as a subsidiary of LDK New Energy Holding Limited.

(:ESLRD) -

ENERGY CONVERSION DEVICES (NASDAQ:ENER) - Energy Conversion Devices, Inc. engages in the design, manufacture, and sale of photovoltaic (PV) products. The company operates in two segments, United Solar Ovonic and Ovonic Materials. The United Solar Ovonic segment provides PV laminates that generate clean and renewable energy by converting sunlight into electricity. It also involves in the design, development, and installation of rooftop and BIPV systems and applications. Its products are used in rooftop and building integrated applications. This segment offers its products to commercial roofing materials manufacturers, builders and building contractors, and solar power installers/integrators. The Ovonic Materials segment invents, designs, develops, and licenses materials and products based on the companys materials science technology. This segment also commercializes the NiMH materials and consumer battery technology. The company operates in the United States, Germany, France, Italy, South Korea, Japan, Hong Kong, and China. Energy Conversion Devices, Inc. was founded in 1960 and is headquartered in Rochester Hills, Michigan.

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