Our Solar Energy Picks Have Tripled in Value
Thursday, November 8th, 2007
By Mitchell Clark, B.Comm. for Profit Confidential
Over the next several quarters, I think we’re going to be in for a difficult stock market environment. I’m not calling for any major downtrend, only range-bound, choppy trading action. The stock market is fairly valued at current levels, but, like the real estate market, I think the stock market will experience what Street analysts like to call a period of consolidation.
The good news is that there remain all kinds of great investment opportunities out there. I still believe that if we’re not going to get a tailwind from the broader market, investors need to own growth stocks if they wish to make money.
One specific area of the stock market that it still incredibly hot is the solar energy sector, which includes a significant number of China-based companies.
Three companies that continue to distinguish themselves as outstanding wealth creators are JA Solar Holdings Co., Ltd. (NASDAQ/JASO), First Solar, Inc. (NASDAQ/FSLR), and SunPower Corporation (NASDAQ/SPWR). All three of these companies were written up in this column a number of months ago and, at the very least, they’ve tripled in value on the stock market this year.
This is only the beginning for the alternative energy sector. With the price of oil trading around $100.00 a barrel, there remain enormous opportunities for investors willing to invest in the right fast-growing companies. The train has already left the station, however, but it’s not too late to take on new positions in alternative energy.
Recently, I found another solar energy stock that is a China-based company listed on the New York Stock Exchange. This company is a new listing (June 2007) and it has already tripled in value. The company is now worth almost $5.0 billion dollars, but the company’s growth expectations for the next several years are astounding.
This stock is now trading at a new high, but I think it could double in value over the next few quarters. This is a bold expectation, but the three above-mentioned solar energy companies tripled in value in only eight months. I’m not excited about the broader stock market going forward, but I am super excited about alternative energy in China. I guess I’ve said it before, but, in my view, this sector of the stock market will be the source of many new fortunes over the next couple of years.
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Tags: china, stock market, U.S. Dollars
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Mitchell 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.



