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Mon, March 14, 2011

FSLR, TSL, JASO, LDK, YGE, SPWRA, Solar Energy Stocks 22.12% undervalued


Published on 2011-03-14 10:30:55 - WOPRAI
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March 14, 2011/ M2 PRESSWIRE / BUYINS.NET / http://www.squeezetrigger.com is monitoring the Solar Energy sector and these stocks are the most undervalued as of today. FIRST SOLAR INC (NASDAQ:FSLR), TRINA SOLAR LTD-SPON ADR (NYSE:TSL), JA SOLAR HOLDINGS CO LTD-ADR (NASDAQ:JASO), LDK SOLAR CO LTD -ADR (NYSE:LDK), YINGLI GREEN ENERGY HOLD-ADR (NYSE:YGE), SUNPOWER CORP-CLASS A (NASDAQ:SPWRA) are all expected to go Up as they are undervalued 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                     139.74         179.43         22.12% undervalued          Solar Energy           
     TSL        TRINA SOLAR LTD-SPON ADR            24.23          30.84          21.43% undervalued          Solar Energy           
     JASO       JA SOLAR HOLDINGS CO LTD-ADR        6.31           8.62           26.84% undervalued          Solar Energy           
     LDK        LDK SOLAR CO LTD -ADR               10.64          15.53          31.47% undervalued          Solar Energy           
     YGE        YINGLI GREEN ENERGY HOLD-ADR        10.5           12.87          18.41% undervalued          Solar Energy           
     SPWRA      SUNPOWER CORP-CLASS A               14.27          36.42          60.82% undervalued          Solar Energy           

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.

TRINA SOLAR LTD-SPON ADR (NYSE:TSL) - Trina Solar Limited, through its subsidiaries, designs, develops, manufactures, and sells photovoltaic (PV) modules worldwide. The company offers monocrystalline PV modules ranging from 165 watts to 240 watts in power output; and multicrystalline PV modules ranging from 215 watts to 240 watts in power output for use in residential, commercial, industrial, and other solar power generation systems. It also involves in the design and production of various PV modules, such as colored modules for architectural applications and larger sized modules for utility grid applications based on customers and end-users specifications. Trina Solar Limited sells and markets its products primarily to distributors, wholesalers, power plant developers and operators, and PV system integrators. The company was founded in 1997 and is based in Changzhou, the Peoples Republic of China.

JA SOLAR HOLDINGS CO LTD-ADR (NASDAQ:JASO) - JA Solar Holdings Co., Ltd., through its subsidiaries, engages in the development, production, and marketing of photovoltaic solar cells, which convert sunlight into electricity in the People's Republic of China. The company produces monocrystalline and multicrystalline solar cells, as well as provides cell processing services. It also involves in modules and wafer manufacturing. The company sells its solar cells principally to solar module manufacturers. JA Solar Holdings Co., Ltd. was founded in 2005 and is based in Shanghai, the Peoples Republic of China.

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.

YINGLI GREEN ENERGY HOLD-ADR (NYSE:YGE) - Yingli Green Energy Holding Company Limited, together with its subsidiaries, engages in the design, development, marketing, manufacture, installation, and sale of photovoltaic (PV) products in the Peoples Republic of China and internationally. The company offers PV cells, PV modules, and integrated PV systems, as well as polysilicon ingots, blocks, and wafers. It sells its PV modules to PV system integrators, installers, and distributors in Germany, Spain, Italy, Greece, France, South Korea, the United States, and the People's Republic of China under the brand names of Yingli and Yingli Solar. The company also offers its integrated PV systems directly to end-users or to contractors for use in the electricity projects, as well as to mobile communications companies in the People's Republic of China. Yingli Green Energy Holding Company Limited was founded in 1998 and is headquartered in Baoding, the Peoples Republic of China.

SUNPOWER CORP-CLASS A (NASDAQ:SPWRA) - SunPower Corporation, together with its subsidiaries, designs, manufactures, and markets solar electric power technologies. The company operates in two segments, Components and Systems. The Components segment manufactures and sells solar power products, including solar panels and inverters, which convert sunlight to electricity compatible with the utility network. This segment sells solar components for use in residential and commercial applications to installers and resellers, including its third-party global dealer network. Its products are also used in multi-MWac solar power plant applications. The Systems segment sells solar power systems directly to system owners and developers. Its services include development, engineering, procurement, permitting, construction, financing options, monitoring, and maintenance. This segment principally offers PowerGuard roof system, a roof-mounted solar panel mounting system; SunPower T-10 commercial solar roof tiles, which are pre-engineered solar panels; SunPower T-5 solar roof tile system that combines solar panel, frame, and mounting system into a single pre-engineered unit; SunTile roof integrated system for residential market; ground mounted SunPower Tracker systems; and fixed tilt and SunPower Tracker systems for parking structures. Its customers include commercial and governmental entities, investors, electric utilities, independent power producers, production home builders, and homeowners worldwide. SunPower Corporation has a joint venture with AU Optronics Corp. to construct and operate a solar cell manufacturing facility in Malaysia. The company was incorporated in 1985 and is headquartered in San Jose, California. SunPower Corporation operates independently of Cypress Semiconductor Corporation, as of September 22, 2008.

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