Buy ReneSola (SOL) to Capitalize on Soaring Solar
Posted on: Aug 13th, 2008 | By J. Christoph Amberger | Filed under Featured, Financial News
Monday’s alt energy results can be summed up in four words: Solar shines. Fuels flop.
Quarterly earnings tripled for Chinese solar maker LDK Solar (NYSE:LDK) on soaring demand for solar power, while ethanol producer Pacific Ethanol (NASDAQ:PEIX) reported a wider-than-expected loss on surging corn prices.
J. Christoph Amberger in Today’s Financial News says these results create a great opportunity for investors. Yesterday, shares in LDK Solar rose 15 percent. And J. Christoph reckons solar maker ReneSola (NYSE:SOL) may now do the same…
LDK Solar apparently is coping quite well with the proposed loss of German subsies. The company reported Q2 revenues surging 89.2% to $441.7 million after total wafer shipments increased 60.8% during the quarter. Gross margins ended up at 25.4%. (Obama, are you listening?! Can you spell “windfall profits”?)
LDK expects revenues between $486 million and $496 million on shipments of between 210 megawatts and 220 megawatts of wafers in the third quarter: “The company also lifted its full year guidance to between $1.65 and $1.75 billion compared to between $1.08 and $1.18 billion earlier.”The stock is still trading well below its 52-week high of $76.75. The stock gained over 17% today.
While most other publicly traded solar companies were gaining today, one in particular stood out: RenaSola another Chinese wafer maker, announced that it would report unaudited Q2 financials on Tuesday, Aug. 19, before the market open. The stock gained over 11% to trade at $15.36.
Call me crazy, but those earnings just might be something!
We’ll play: Buy RenaSola between $15-16 in view of an earnings-induced bounce of another 20% by next Tuesday.
Source: ReneSola is Our New Solar Earnings Speculation
Amberger began his career as a freelance contributor to Agora publications before emigrating from Germany to the United States in 1989, when he joined the editorial board of Taipan. In 1991, he took over as managing editor for the publication and assumed responsibility as group publisher four years later. In 2007 Christoph left Taipan and founded TodaysFinancialNews.com along with its premium publications: the highly successful stock Hot Stock Confidential, the options research service TFN Strategic Trader and, most recently, Penny Stock Confidential. In November of 2009, he welcomed Contrarian Profits to the Today's Financial News network. 