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Mon, March 14, 2011

RSOL, WEST, SOPW, STRI, PPRW, Solar Energy Stocks 18.98% undervalued


Published on 2011-03-14 10:31:06 - 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. REAL GOODS SOLAR INC-CLASS A (NASDAQ:RSOL), AKEENA SOLAR INC (OTC:WEST), SOLAR POWER INC (OTCBB:SOPW), STR HOLDINGS INC (NYSE:STRI), PREMIER POWER RENEWABLE ENER (OTCBB:PPRW) 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               
     RSOL       REAL GOODS SOLAR INC-CLASS A        2.48           3.06           18.98% undervalued          Solar Energy           
     WEST       AKEENA SOLAR INC                    0.529          2.01           73.65% undervalued          Solar Energy           
     SOPW       SOLAR POWER INC                     0.45           0.88           48.98% undervalued          Solar Energy           
     STRI       STR HOLDINGS INC                    15.76          20.38          22.69% undervalued          Solar Energy           
     PPRW       PREMIER POWER RENEWABLE ENER        1              1.09           8.60% 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.

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.

AKEENA SOLAR INC (OTC:WEST) - Akeena Solar, Inc. engages in the design, integration, installation, marketing, and sale of solar power systems. The company involves in the design and integration of grid-tied solar power systems, which are electrically connected to the utility grid so that excess energy produced during the day flows backwards through the utilitys electric meter. It also offers AC solar panels. The company sells its solar power systems to residential customers that comprise high-income professionals, as well as to commercial customers, including owner occupied businesses consisting of wineries and small commercial offices in the United States; and AC solar panels to solar installers, trade workers, and do-it-yourself customers in the United States and Canada, through distribution partnerships, dealer network, and retail outlets. It has a strategic partnership with Enphase Energy to develop and market Andalay solar panel systems with ordinary AC house current output instead of high voltage DC output. The company was founded in 2001 and is headquartered in Los Gatos, California with additional offices in Palm Springs and San Diego, California.

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.

STR HOLDINGS INC (NYSE:STRI) - STR Holdings, Inc., through its subsidiaries, engages in the manufacture and sale of encapsulants that are specialty extruded sheets and films used in the production of solar modules worldwide. The company operates in two business segments, Solar and Quality Assurance (QA). The Solar segment offers encapsulants that protect the embedded semiconductor circuits of solar panels to solar module manufacturers. The QA segment provides product development, inspection, testing, and audit services that enable retailers and manufacturers to determine whether products meet applicable safety, regulatory, quality, performance, and social standards. The company was founded in 1944 and is based in Enfield, Connecticut.

PREMIER POWER RENEWABLE ENER (OTCBB:PPRW) - Premier Power Renewable Energy, Inc., through its subsidiaries, designs, engineers, and installs photovoltaic systems in North America, Spain, and Italy. The company develops, designs, and integrates ground mount and rooftop solar energy solutions for residential, commercial, industrial, and equity fund customers. It also provide a range of installation services to its solar energy customers, including design, engineering, procurement, permitting, construction, grid connection, warranty, system monitoring, and maintenance services. In addition, it operates as a reseller of solar energy system components, including racking, wiring, inverters, solar modules, and other related components sourced from other manufactures and suppliers. The company is headquartered in El Dorado Hills, California.

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