They just keep running around in glee. First Solar, with questions hovering over whether it'll make earnings expectations of 7-8 cents per share, finished strong today. While I slept (5-10 a.m. Hawaii time), the stock languished around $110 for much of the session. Then, with two hours left, FSLR went crazy and climbed to a $120 close. With earnings due out tomorrow, did somebody leak something? Perhaps drawing a residual effect, tiny Yingli Green Energy moved up 6.4% to $18.16. YGE has spent the early part of the day up about 20-40 cents before making the move for a gain of $1.09.
Shares of YGE were at $16 just two sessions ago. Will it pull back or trade with its sector? I think of First Solar as overpriced, especially after today's 8% run to $120. This Co doesn't even have more revenues than tiny Yingli. What FSLR has is a unique product and major financial muscle, i.e. the Walton family, and scored a $1 billion secondary offering recently. That's clout. Still, I might step into the Yingli Green House simply because of the sector's heat and Yingli's location. China is spending big on alternative energy.
A buy into Yingli would be counter, in a way, to my small holding in Hoku Scientific. The latter has a non-binding contract with a Yingli competitor, big boy Suntech. I like the fundamental numbers of STP very well. STP traded up 1% to $39.89.
Can FSLR run up again tomorrow before earnings? After trading sideways since July 9, today's big move on strong volume is clearly bullish. Hmm...
At this point, STP looks like a safe investment compared to its peers in the sector, while YGE has a lot of upside. I can't let go of FSLR though, because of its "thin film" technology. Cheaper to make, not quite as efficient as silicon ... but profitable.
How much so? Tomorrow's earnings report awaits.
Pupule Paul has no position in these stocks.
No comments:
Post a Comment