Crude oil prices have been surging recently, and there is little sign that the momentum will be slowing down. Every time crude oil reaches these types of elevated levels, it seems that interest in alternative forms of energy also rise. Solar is one type of alternative energy that gets particular attention, and should be on investors' radar going into 2012.
First Solar (FSLR): Q2 EPS of $1.65 beats by $0.75. Revenue of $957.3M (+80% Y/Y) beats by $137.4M. Expects 2012 revenue of $3.6B-$3.9B, above $3.48B consensus. Expects 2012 EPS of $4-$4.50, above $3.95 consensus. Company also announces it's developing a 139MW California solar project, and that CEO James Hughes has been added to the board.
First Solar's Q2: Gross margin was 25.4%, down from 36.5% in the year-ago period, but up from Q1's 15.4%. Also, opex fell 20% Y/Y even as revenue surged, evidence the company's cost-cutting efforts are paying off. Not entirely clear is how much anti-dumping tariffs are helping First Solar's top line. Accounts receivable (closely watched given payment concerns) totaled $580.8M, -33% Q/Q. Inventories were nearly flat. FSLR +13.1% AH
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Below these are the Solar stocks I am follow on 2012.
Solar Stocks List
Solar Pure Plays:
•SunPower Corporation (Nasdaq: SPWR)
•First Solar Inc. (Nasdaq: FSLR)
•Evergreen Solar (Nasdaq: ESLR)
•SunTech Power Holdings (NYSE: STP)
•Trina Solar (NYSE: TSL)
•Solarfun Power Holdings (Nasdaq: SOLF)
•Canadian Solar Inc. (Nasdaq: CSIQ)
•JA Solar Holdings (Nasdaq: JASO)
•China Sunergy (Nasdaq: CSUN)
•LDK Solar (NYSE: LDK)
•ReneSola Ltd. (NYSE: SOL)
Smaller companies with Solar exposure:
•Energy Conversion Device (Nasdaq: ENER)
•Hoku Scientific (Nasdaq: HOKU)
•Daystar Technologies (Nasdaq: DSTI)
•Spire Corporation (Nasdaq: SPIR)
Solar Energy ETFs:
•Market Vectors Solar Energy ETF (KWT)
•Claymore/MAC Global Solar Energy (TAN)
Bigger companies with Solar exposure:
•MEMC Electronics (NYSE: WFR)
•General Electric Co. (NYSE: GE)
•Boeing Co. (NYSE: BA)
•British Petroleum (NYSE: BP)
•Royal Dutch Shell (NYSE: RDS-B)
•Kyocera (NYSE: KYO)
•Applied Materials (Nasdaq: AMAT)
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