What solar energy company is a good investment stock.?

Question

What solar energy company is a good investment stock.?

Answer 1

FSLR

They have their little pullback so its a good time to buy.

These guys are the most efficient in making their solar panels...says Jim Cramer

Answer 2

There might be some question as to whether any of them are a good investment.  They are extremely speculative.  Not only are the speculative, but most are also overpriced relative to the risk.  As with any developing technology the pioneer companies are not likely to be the surviving companies. As the technology matures and becomes less of a risk for investment, mature companies with very deep pockets jump in and drive out the pioneers.  99% of the pioneering biotech companies are no longer around.  Genentech and Amgen are the two major exceptions.

There are a couple of Chinese companies that appear to have some merit as being perhaps good investments maybe.

Suntech Power Holding is one  STP is the ticker.  It has revenue of 1.6 billion and a market cap of about 6 billion.  Its debt to equity is a little high though at 1.1.  ROA about 6.6%. PE about 34.  Revenue growth about 50% more or less.  This is very likely to be constrained for the next year or so because of the restrictions on silicon supply. There is very little available.

Another that is a much smaller company but might be a decent bet is Trina Solar Ltd.  Ticker TSL.  Revenue about 239 million.  Market cap about 741 million.  Debt to equity about 0.36.  ROA about 5.2%. PE about 26.  

I do not believe there are any U S companies that are good investments.  They are all too highly priced currently.