Lombardi: Expert Stock Market Commentary & Forecasts, Financial & Economic Analysis Since 1986
Stock Market Commentary & Forecasts, Financial & Economic Analysis

Welcome to Profit Confidential • Monday, May 21, 2012

Alternative Energy Will Be Hot for the Next Decade

Monday, March 26th, 2007
By Mitchell Clark, B.Comm. for Profit Confidential

Remember Trina Solar Inc. (NYSE/TSL)? This China company trades on the New York Stock Exchange and came to the market at around $20 per share in mid-December last year. Now this stock is trading around $45 per share. That’s serious capital appreciation in a short period.

The alternative energy investment theme is here to stay for a long time. And it’s not only solar energy stocks that have Wall Street’s attention. Pollution control and new environmental technologies are also going to be hot over the next decade.

Another new hot stock related to the solar energy industry is First Solar Inc. (NASDAQ/FSLR). This company distinguishes itself in the field because it is American.

Based in Phoenix, Arizona, the company manufactures solar modules with an advanced “thin film” semiconductor process that helps reduce solar electricity costs. The company currently sells most of its product in Germany, where the adoption of solar energy is becoming widespread.

Very soon, policy makers in other Western countries could introduce more legislation promoting solar energy use. If that happens, you’re going to see a whole new industry flourish in this country.

In its fourth quarter ended December 30, 2006, First Solar’s revenues grew to $52.7 million, up from revenues of $40.8 million generated in the third quarter of fiscal 2006 and up substantially from revenues of $13.6 million generated in the fourth quarter of fiscal 2005.

For all of 2006, the company’s revenues grew 181% to $135.0 million, up from revenues of $48.1 million in fiscal year 2005.

Net income for the fourth quarter of fiscal 2006 was $8.04 million, or $0.12 per share, as compared to a loss of $7.2 million, or ($0.14) per share, in the fourth quarter of 2005.

For all of fiscal 2006, net income was $3.97 million, or $0.07 per share, as compared to a net loss of $6.5 million, or ($0.13) per share, in fiscal 2005.

Right now, First Solar is expanding its Ohio manufacturing plant, and is currently building a new manufacturing plant in Germany. As with most solar energy manufacturers, demand isn’t an issue, only the supply of raw materials is.

My feeling is that solar energy stocks are only going to get more popular over the coming years. This doesn’t mean these stocks are attractive from a valuation standpoint, only from a sentiment/trading perspective.

 

Next Post:
Previous Post:

Tags: , ,










Sign Up for PROFIT CONFIDENTIAL and
receive a FREE copy of our exclusive report:
"A GOLDEN OPPORTUNITY FOR STOCK MARKET INVESTORS"

Enter e-mail:

We respect your privacy and
will never share your e-mail address.



Profit Confidential AuthorMitchell is a Senior Editor at Lombardi Financial specializing in small-cap stocks. He’s the editor of a variety of popular Lombardi Financial newsletters, such as Penny Stock Reporter, Micro-Cap Stocks, and Monster Profits. Mitchell, who has been with Lombardi Financial for thirteen years, won the Jack Madden Prize in economic history and is a long-time student of equity markets. Prior to joining Lombardi, Mitchell was as a stock broker for a large investment bank. While Mitchell is not working he enjoys fly fishing, motorcycling and tending to his hobby farm.

Daily Profits


Enter your e-mail address to subscribe to
Profit Confidential — IT'S FREE!
Enter e-mail:
ALSO RECEIVE A FREE COPY of our exclusive report:
"A Golden Opportunity for Stock Market Investors"

McAfee SECURE sites help keep you safe from identity theft, credit card fraud, spyware, spam, viruses and online scams

 

Corporate
About Us
Privacy
Disclaimer
Contact Us
White List
Sitemap

Profit Confidential
Predictions
Gurus
Archives
FREE Sign-Up
RSS
Twitter
Facebook

Editors
Michael Lombardi
George Leong
Mitchell Clark
Tony Jasansky
Robert Appel
Wendy Potter
Sasha Cekerevac

Topics
Gold Stocks
Stock Market
Bear Market
Bull Market
US Dollar
Euro
Interest Rates

Expertise
U.S.Deficit
Real Estate Market
Debt Crisis
Chinese Economy
Economic Analysis

Guidance
Investment Guidance
Retirement Plan
Chinese Stocks
The Best Stocks
Gold Stock Picking
Real Estate Investment

Resources
Gold
Precious Metals
Real Estate News
Gold Investments
Investing in Real Estate


Profit Confidential Disclaimer