Friday, January 2, 2009

Solar Stock Picks: Timing

Although many pundits have gloomy predictions for solar, success in the market is often achieved by targeting undervalued stock when other investors are wary. This certainly seems to be the case for solar so far this year. This despite a New Year's Eve, Digitimes report indicating that certain Chinese wafer-makers have been "dumping" their production on the market.

Any assessment of solar must factor the impact of President-elect Obama's 775 billion dollar commitment to rebuilding the American economy through harnessing the power of the sun and the wind. Renewable energy is his 'priority', and he has explicitly and repeatedly referenced solar and wind power as the key features of his energy plan. In light of this massive stimulus, here are my solar stock picks.

FIRST SOLAR INC. FSLR
SUNPOWER CORP. SPWRA
Suntech Power Holdings Co., Ltd. STP
EVERGREEN SOLAR INC. ESLR
CANADIAN SOLAR INC. CSIQ

Between December 15 and 17, following Obama's announcement of his team on energy and the environment, all the solar stock in my energy portfolio increased in value. THE GREEN MARKET's solar stock picks advanced 5% the first day and added an additional 10% the following day before tailing off.

Despite the bearish sentiments expressed by some commentators, solar has started the year strong. The solar stock included here represents a moderate level of risk and a very significant return potential.

Next: My Solar Stock Picks Reviewed

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