BloggingStocks

Suntech (STP) lifted by reported Japanese solar subsidies

Brent Archer — 2008-06-23T14:04:00+00:00

Filed under: Good news, Industry, Japan, Options, Technical Analysis, Suntech Power Hldgs ADS (STP)

Suntech Power Holdings (NYSE: STP) shares are trading higher today on reports that the Japanese Ministry of Economy, Trade and Industry (METI) is considering a resumption of subsidies for solar panel makers beginning next year to maintain its lead in the industry. METI will be discussing subsidies at its meeting this week. This could be a good sign for the solar industry and STP. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on GIS.

After hitting a one-year high of $90.00 in January, the stock hit a one-year low of $28.19 in March. STP opened this morning at $42.01. So far today the stock has hit a low of $41.12 and a high of $42.69. As of 12:35, STP is trading at $41.85, up 0.54 (1.3%). The chart for GIS looks bearish but improving slightly, while S&P gives the stock a positive 4 STARS (out of 5) buy rating.

For a bullish hedged play on this stock, I would consider an August bull-put credit spread below the $30 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make a 7.5% return in just two months as long as STP is above $30 at August expiration. STP would have to fall by more than 28% before we would start to lose money. Learn more about this type of trade here.

STP hasn't been below $30 since March and has shown support around $38 recently. This trade could be risky if the company's earnings (due out in early August) disappoint, but even if that happens, this position could be protected by the support the stock might find between $35 and $40, where it bounced over the past month.

Brent Archer is an options analyst and writer at Investors Observer.

DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent neither owns nor controls positions in STP.

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Mailbag: Using Green for Green Stocks

Todd Harrison — 2008-06-19T12:57:00+00:00

Filed under: General Electric (GE), Cypress Semiconductor (CY), Commodities, Trina Solar ADS (TSL), Suntech Power Hldgs ADS (STP), Zoltek Co (ZOLT), Green Stocks

Minyanville's Sean Udall dares to share the kind of keen insight and actionable information you won't find in any prospectus. Here he answers a reader's burning question about "green" stocks. For more original thought, visit www.minyanville.com.

Professor Udall,

Do you have any opinions on Zoltek Companies, Inc. (NASDAQ: ZOLT)? My wife wants me to buy everything "green". Her last "green" company idea was General Electric (NYSE: GE). I know, right? I bought a little just to quiet the noise level. I'm into a little SunPower (NASDAQ: SPWR) and Evergreen Solar (NASDAQ: ESLR). Does Zoltek have legs?

Thanks,

Minyan L.

Minyan L.,

First, that's hysterical. Second, a word of caution: Going all green, or all of any one thing, is something I'd never advocate. If you do, you do so at your own risk, as nothing in the market is ever as obvious as it seems, especially when it seems totally obvious.

As for Zoltek, I've always had a hard time getting my arms around the volatility that is this company. I invest in and trade many stocks with high to very high volatility, but the way Zoltek trades has never struck a cord with me.

Additionally, with respect to high beta, I tend to like companies with cash-rich (preferably net cash) balance sheets and volatile Zoltek isn't sporting that big green stockpile.

In my opinion, the highest quality solar plays are Cypress Semiconductor (NYSE: CY)/SunPower, Trina Solar (NYSE: TSL) and Suntech (NYSE: STP). Evergreen Solar is my flyer as it will need capital, but I believe it's for viable reasons.

I currently favor solar over wind from a longer-term thematic standpoint, but that doesn't mean I don't see the wind thesis and think longingly about the American Superconductor (NASDAQ: AMSC) shares I owned not too many months ago.

If you're looking specifically for wind plays, you may want to investigate Thomas & Betts (NYSE: TNB). It's a well valued stock that's trading way off highs.

Sean

Position in TSL, ESLR

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Are we in for Bush vs. Carter, and what stocks would fare better under each?

Sheldon Liber — 2008-06-11T15:45:00+00:00

Filed under: Rants and raves, Cisco Systems (CSCO), Pfizer (PFE), Coca-Cola (KO), Exxon Mobil (XOM), JPMorgan Chase (JPM), Adobe Systems (ADBE), Automatic Data Proc (ADP), Avon Products (AVP), Black and Decker (BDK), Chevron Corp (CVX), Costco Wholesale (COST), Goldman Sachs Group (GS), Cardinal Health (CAH), Kraft Foods'A' (KFT), Politics, Suntech Power Hldgs ADS (STP), General Dynamics Corp (GD), Northrop Grumman (NOC), Raytheon Company (RTN)

For the first time Monday I heard John McCain comparing Barack Obama to Jimmy Carter. I had heard this before in other arenas, but not from McCain. I guess that despite these two presidential candidates pledging to the American people to bring change and resist politics as usual, they are both, as usual as one could get.

Obama is being shaped by the pressures of running for office and to believe otherwise is delusional. I suppose one has to have hope but the effects of the campaign are becoming clear. Obama has been painting McCain as an extension of Bush, which is nonsense, and now in a typical tit-for-tat response, McCain is filling the air with Carter references.

Both McCain and Obama are wrong in their assessments of their opponents and they are becoming commoners to resort to the bottom of the barrel campaign techniques used in every campaign for most of our nation's proud history. Obama gave up the high ground too easily and McCain has decided he can sling mud with the best of them.

Stick to the issues fellas, or neither one of you will have any credibility left to fight the inflation, sinking dollar, war, oil & food prices, federal deficit, trade imbalances, national infrastructure, health care and Social Security nightmares and a multitude of other issues one of you will be saddled with.

How will either affect stock prices. The market is full of assumptions. If McCain wins, the defense sector, energy, health care, financials and high yielding stocks are probably better bets. Some examples are:

If Obama wins, better bets might be alternative energy, high-tech, consumer staples, retail and non-dividend paying stocks (think taxes). Some examples are:

These are just a few stocks from among those that have been reviewed on BloggingStocks and not current recommendations. They are just meant to give a little flavor to what I sense as market sentiment, and to stimulate some discussion.

Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. He writes the columns Chasing Value and Serious Money.

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Google (GOOG) and Chevron (CVX) light up solar

Douglas McIntyre — 2008-05-27T08:48:00+00:00

Filed under: Products and services, Google (GOOG), Chevron Corp (CVX), Suntech Power Hldgs ADS (STP)

Solar energy may be the wave of energy's future, but companies such as Google (NASDAQ: GOOG) and Chevron (NYSE: CVX) may best start-ups in getting to the benefits. A number of large American companies with tremendous balance sheets are pouring money into solar energy based on the fact that it is becoming more competitive with oil.

According to Bloomberg, "Costs for the technology will fall below coal as soon as 2020, the U.S. government estimates. JPMorgan Chase & Co. and Wells Fargo & Co. invested last year in the biggest solar plant built in a generation; Chevron and Google are funding research; and Goldman Sachs is seeking land to lease as demand out-paces wind turbines and geothermal."

Given the potential size of the bonanza, the investments should not be surprising, but they could squeeze smaller solar energy companies out of the market. Firms like JA Solar (NASDAQ: JASO) and SunTech (NYSE: STP) have their entire futures bet on the success of solar energy and the fact that there are not many companies in the business, at least until now.

It has began to occur to large companies that if fossil fuels will indeed start to run low in two or three decades that the trillions of dollars in market cap currently represented in large oil company stocks will have to go somewhere.

Why not to Google?

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Resource expert sets sights on clean energy

Steven Halpern — 2008-05-26T10:00:00+00:00

Filed under: China, Newsletters, Canada, Commodities, Oil, Suntech Power Hldgs ADS (STP), Stocks to Buy, Green Stocks

"Oil is setting the stage for a big rally in alternative energy," says Eric Roseman, resources expert and editor of Commodity Trend Alert. Here's a look at two stocks poised to benefit from this trend.

"A surging oil price is extremely bullish for alternative energy. Over the last 12 months, as oil prices have doubled, uranium and solar energy stocks have crashed.

"These sectors have declined because sub-prime has taken everything to the basement until recently - not because solar energy or uranium are flawed investment themes.

"That's why we've recently placed new trades on Suntech Power Holdings (NYSE: STP) and Cameco (NYSE: CCJ). There's no way high oil prices won't encourage more interest in these distressed sectors.

"Here's another bullish reason why I like clean energy: The slow demise of bio-fuels. Over the last three months, soaring grain prices and a report on the harmful emissions manufactured by bio-fuel production has seriously compromised the bio-fuel theme.

"This means investors and governments will increasingly look to clean energy - solar and uranium. Governments will boost subsidies to solar energy. Stick to these investment themes because I expect them to rocket over the next several years as more investors dump corn-based and rapeseed-based bio-fuel.

"I guarantee that we will see a major long-term rally develop in solar and uranium (again) as a consequence of $125, $150 or even $200 per barrel oil. By now, everyone should be long and strong CCJ and STP - no excuses."

Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.

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Earnings highlights: Home Depot, Gap, Lenovo, Air France, Activision, Suntech and others

Trey Thoelcke — 2008-05-24T09:40:00+00:00

Filed under: Earnings reports, Home Depot (HD), Gap Inc (GPS), Lowe's Cos (LOW), Activision Inc (ATVI), Intuit Inc (INTU), Suntech Power Hldgs ADS (STP)

Here are some highlights from this past week's earnings coverage from BloggingStocks:

Activision Inc. (NASDAQ: ATVI) beat Q4 expectations and raised its fiscal 2009 guidance.
Air France-KLM swung to a loss in the fourth quarter and warned of tough times ahead.
BJ's Wholesale Club (NYSE: BJ) Q1 earnings soared, beating expectations, and it raised its forecast.
Canadian Solar Inc. (NASDAQ: CSIQ) beat Q1 estimates on robust demand and favorable exchange rates.
Foot Locker Inc. (NYSE: FL) Q1 profit declined, hurt by an impairment charge and nearly flat sales.
Gap Inc. (NYSE: GPS) beat Q1 earnings estimates by managing costs and inventory.
Home Depot Inc. (NYSE: HD) Q1 earnings tumbled on a one-time charge and the housing slump.
Intuit Inc. (NASDAQ: INTU) beat Q3 expectations and announced a share buyback program.
Lenovo Group Ltd. (OTC: LNVGY) Q4 earnings more than doubled on strong global distribution.
Lowe's Companies Inc. (NYSE: LOW) reported a so-so first quater in line with Wall Street expectations.
NetEase.com Inc. (NASDAQ: NTES) Q1 earnings declined due to increased tax burden.
Saks Inc. (NYSE: SKS) missed Q1 earnings estimates but beat revenue expectations.
Solarfun Power Holdings Co. (NASDAQ: SOLF) Q1 revenue surged 529% from the previous quarter.
Suntech Power Holdings Co. (NYSE: STP) Q1 revenues soared and earnings more than doubled.

Additional earnings highlights:
Hewlett-Packard, Target, Barnes & Noble, Campbell, Staples and others
Ford, Hormel, Limited Brands, Intuitive Surgical, PetSmart and others

Upcoming results to watch for include Borders (NYSE: BGP), Polo Ralph Lauren (NYSE: RL), TiVo (NASDAQ: TIVO), Big Lots (NYSE: BIG), Costco (NASDAQ: COST), Dell (NASDAQ: DELL), HJ Heinz (NYSE: HNZ), Sears (NASDAQ: SHLD), Lions Gate (NYSE: LGF), and Tiffany (NYSE: TIF).

Visit AOL Money & Finance for more earnings coverage.

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Suntech Power (STP) delivers solid quarter; SOLF downgrade affects sector

Melly Alazraki — 2008-05-22T15:03:00+00:00

Filed under: Earnings reports, Analyst reports, Analyst upgrades and downgrades, Trina Solar ADS (TSL), Suntech Power Hldgs ADS (STP)

Suntech Power Holdings Co. (NYSE: STP), which saw its stock surge some 150% in 2007, didn't have such a good 2008 so far with its stock plunging about 44% year-to-date. But since setting a 52-week low of $28.19 on March 22, the stock has rebounded nicely, up over 55%. Roller coaster or what?!

Well, today, the maker of photovoltaic cells and modules said first-quarter earnings more than doubled on 76% higher revenue. Earnings reached $55.8 million, or 33 cents an American depositary share, beating analysts estimates of 28 cents. Revenue reached $434.5 million. Gross margins also expanded nicely and Suntech reiterated revenue estimates for 2008.

Early in the morning, STP shares jumped over 7% in premarket trading in response to the report but have not kept this up. Shares are now trading at $45.73, down over 1%, probably declining with the rest of the sector following Goldman Sachs's downgrade of Solarfun (NASDAQ: SOLF) to Sell from Neutral. SOLF shares are down over 18% taking LDK Solar (NYSE: LDK), Trina Solar (NYSE: TSL) and Canadian Solar (NASDAQ: CSIQ) down with it -- 5%, 8% and 13% respectively, to name but a few.

Suntech Power has long been a favorite of mine in a sector that has new companies popping up like mushrooms after the rain. With very little barrier to entry and with rising cost of raw materials -- mainly polysilicon, which was also in short supply -- being one of the largest companies in the sector can have its advantages. Besides, I'm always more skeptical when a sector is so hot. Of course, anyone who doesn't think alternative energy, and solar in particular, isn't going to take a larger share in our lives as oil prices move up, they live in a different reality. Therefore, a solid solar company would be the play for me.

Despite delivering solid results, Suntech said its solar cell production capacity doubled to 540 megawatts at the end of the first quarter, and it predicts it will reach 1 gigawatt of capacity by the end of the year. I hope the new output will grow enough to satisfy the surging demand, as STP would certainly want to capitalize on the rising prices and demand for its product.

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Before the bell: BCE, STP, BKS, GPS, AAPL, CRM, PFE, MRK

Melly Alazraki — 2008-05-22T08:21:00+00:00

Filed under: Before the bell, Earnings reports, Analyst reports, Deals, Apple Inc (AAPL), Pfizer (PFE), Gap Inc (GPS), Merck and Co (MRK), Analyst initiations, salesforce.com inc (CRM), Suntech Power Hldgs ADS (STP)

Before the bell: Futures higher as oil bursts through $135

It seems that the BCE (NYSE: BCE) buyout plan, has hit yet another bump on the road, only this one could not be as easy to overcome. A Quebec appeals court reversed a lower court and rejected the $33 billion buyout plan accepting the claim of a group of bondholders that the deal is unfair to them. BCE shares are plunging nearly 15% in premarket trading.

Earnings today are due from Barnes & Noble (NYSE: BKS) -- just after the company said it was interested in buying Borders (NYSE: BGP) -- and Gap (NYSE: GPS) -- a day after the clothing retailer announced an expansion in Russia.

Suntech Power Holdings Co. (NYSE: STP) shares are jumping over 7.5% in premarket trading after the solar energy company reported that first-quarter earnings more than doubled on 76% higher revenue. Earnings reached $55.8 million, or 33 cents an American depositary share and revenue reached $434.5. Analysts estimated 28 cents for the quarter.

Salesforce.com (NYSE: CRM) late Wednesday reported first-quarter net income of $9.6 million, or 8 cents a share, 13 times higher than the comparable period last year. Sales grew 53% to $247.6 million. Analysts had expected earnings of 7 cents a share on revenue of $235.8 million. CRM was upgraded by a few analysts.

Apple Inc. (NASDAQ: AAPL) was initiated with Outperform and a $235 target at Oppenheimer.
Pfizer Inc. (NYSE: PFE) anti-smoking drug Chantix received another blow Wednesday after a nonprofit group's report about serious physical side effects prompted the Federal Aviation Administration to ban the drug's use by pilots and air traffic controllers.

Staying in pharma, Merck & Co. (NYSE: MRK) has halted a study of an experimental drug, MK-0524A, which was supposed to bring new life into sagging cholesterol franchise The FDA has already refused to allow sales of the drug.

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Option Update: Suntech Power and China Sunergy volatlity up into EPS

Paul Foster — 2008-05-16T11:21:00+00:00

Filed under: Options, Suntech Power Hldgs ADS (STP)

Suntech Power (NYSE: STP) closed at $47.12 Thursday.

STP is scheduled to report Q1 EPS on May 22.

STP June option implied volatility of 80 is above its 26-week average of 73 according to Track Data, suggesting larger price movement.

China Sunergy (NASDAQ: CSUN), a manufacturer of solar cell products in China, closed at $12.58 Thursday.

CSUN is expected to report Q1 EPS on May 20.

Cowen says: "Key issues: Ramp of new cells, expense control, liquidity."

CSUN June option implied volatility of 111 is above its 26-week average of 100 according to Track Data, suggesting larger price risk.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

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Analyst initiations: STON, STP, AGU, KCAP, NWL and TSO

Eric Buscemi — 2008-05-06T12:12:00+00:00

Filed under: Analyst reports, Newell Rubbermaid (NWL), Analyst initiations, Suntech Power Hldgs ADS (STP)

MOST NOTEWORTHY: StoneMor Partners, Suntech Power and Tesoro were today's noteworthy initiations:

Morgan Keegan initiated StoneMor Partners (NASDAQ: STON) with a Market Perform rating. The firm has a low level of confidence in STON's financial projections given its vulnerability to changes in state and local regulations, and financial reporting complexities.
Jesup & Lamont initiated Suntech Power (NYSE: STP) with a Buy based on the company's leading position in solar PV, industry growth and polysilicon supply agreements in place.
Tesoro (NYSE: TSO) was assumed with an Underweight rating at JP Morgan. The firm expects the West Coast margins to remain weak given the decline in the gasoline demand and capacity increases of the majors.

OTHER INITIATIONS:

RBC Capital initiated Agrium (NYSE: AGU) with an Outperform rating and $115 target.
Merrill initiated Kohlberg Capital (NASDAQ: KCAP) with a Neutral rating.
Caris started Newell Rubbermaid (NYSE: NWL) with an Average rating and $24 target.

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Suntech Power (STP): A 'new technology' for solar

Steven Halpern — 2008-04-04T12:10:00+00:00

Filed under: International markets, China, Newsletters, Commodities, Oil, Suntech Power Hldgs ADS (STP), Stocks to Buy, Green Stocks

"Suntech Power Holdings (NYSE: STP), one of our long-time favorites, is now back on our buy list after being driven down in price by U.S. market volatility and the fallout from a recent earnings report," notes Jim Trippon.

The editor of The China Stock Digest explains, The company is world leader in the manufacture of photovoltaic solar cells and solar electric systems. And, it is developing a new technology to increase solar efficiency." Here is his review.

"The company's solar cells are used to supply power to the electricity grid within China, and it's the number one company in the Chinese solar energy industry. The company's systems also provide dependable power internationally for mobile phone networks and telecommunications relay stations and even street lamps in case of power outages.

"Certainly China is in desperate need of clean renewable sources of energy. Residents of major cities like Beijing and Shanghai are constantly enveloped in a choking cloud of smog. Beijing has said it wants a tenth of its energy to come from environmentally friendly sources by 2010.

"The problem with solar energy has always been the high cost of manufacturing solar cells relative to the amount of power output per cell. Suntech is attacking that problem with rigorous cost control and the competitive advantages that low cost Chinese manufacturers enjoy in the international arena.

"Suntech is well positioned in growth areas of Europe, including France and Greece. It has also agreed to buy the Japanese photovoltaic materials firm MSK Corporation to gain entry to Japan's solar energy market.

"The company also gained a toehold in the U.S. by establishing a subsidiary called Suntech America, based in Delaware. It's expanding its R&D capabilities with a new research facility that's being built near Shanghai.

"The company reports that it's had enormous success in developing a new technology that boosts the efficiency
of its solar cells. Suntech says the commercial adoption of its latest so-called 18% 'semiconductor finger'
conversion-efficiency technology is on schedule and that the performance of this technology has exceeded
the company's expectations.

"Suntech says this exotic new technology has increased the average energy conversion efficiency of its best photovoltaic cells to 18%, well above the industry average of 14% to 15%. The company states that it has also maintained the lowest cost production base relative to its peers with its new solar cell wafer-making technology.

"Suntech reported a very impressive 61% increase in fourth quarter earnings. But shares fell sharply on earnings projections that fell short of analysts' expectations. The company said it expected 2008 revenue of $1.9 billion to $2.1 billion, while analysts on average had forecast $2.2 billion.

"We believe that Suntech has been oversold, given its excellent operations and future prospects. Silicon resources have been in short supply and rising in price as worldwide demand for solar-generated electricity continues to boom. The short term outlook may be disappointing to some, but the future of this industry
leader is very bright.

"Suntech has been a great performer for China Stock Digest subscribers in the past and we expect it to equal its performance before 2009. We look forward to selling shares of Suntech Power for a price of $80 or more before year-end."

Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.

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Closing Bell: Where'd that bear go?

Jon Ogg — 2008-03-25T17:48:00+00:00

Filed under: After the bell, Sirius Satellite Radio (SIRI), Merrill Lynch (MER), Goldman Sachs Group (GS), Valero Energy (VLO), Anadarko Petroleum (APC), Suntech Power Hldgs ADS (STP)

There are many that fear the bear hasn't died. Maybe he's hibernating. But if the bear isn't gone, he's at least lost some teeth. In the last hour of trading today, the DJIA was up more than 900 points from its intraday lows seen just last Monday. Despite weaker home prices trends not seen for 20 years and despite an absolutely dismal ugly Consumer Confidence report, the market managed to do well today despite mixed index averages at the closing bell. There was not a single earnings report that can be used for "the focus" that turned the whole market. It looks like there was actually real buying interest coupled by short covering. Here are the unofficial closing bell index averages for today:

DJIA 12,532.60 (-16.04; -0.13%)
S&P500 1,352.99 (+3.11; +0.23%)
NASDAQ 2,341.05 (+14.30; +0.61%)
10YR-TBond 3.492% (-0.03)

Monsanto (NYSE: MON) rose almost 10% to $114.54 after the agriculture giant raised guidance for both Q2 and for fiscal 2008 based on strong seed sales and all other markets firing on all cylinders.

Goldman Sachs Group, Inc. (NYSE: GS) shares rose 0.4% to $179.63 as it filed today for its first special purpose acquisition company, or SPAC, IPO. Its rival Merrill Lynch & Co., Inc. (NYSE: MER) saw shares hit by 1% down to $47.85 after it was downgraded by analysts at both JPMorgan and at UBS.

Sirius Satellite Radio Inc. (NASDAQ: SIRI) saw its shares fall almost 2% to $3.09 after Goldman Sachs took an already cautious rating down to its Conviction Sell List not just after the DOJ approved the merger. It downgraded it as that was the catalyst the firm was looking for. See the Top 10 pre-market analyst calls.

Suntech Power Holdings Co. Ltd. (NYSE: STP) saw a sharp rise of 11% to $38.25 after Lazard Capital Markets called for many solar stocks to more than double.

We had some dueling news in oil and gas today, despite oil magnate T. Boone Pickens calling for higher prices to stay. Valero Energy Corporation (NYSE: VLO) fell by almost 4% to $48.10 after it lowered guidance last night, but Anadarko Petroleum Corporation (NYSE: APC) rose almost 1% to $63.02 after it raised its guidance.

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Suntech Power (STP) inks a new polysilicon deal

Brent Archer — 2008-03-24T13:29:00+00:00

Filed under: Major movement, Good news, Options, Technical Analysis, Suntech Power Hldgs ADS (STP)

Suntech Power Holdings Co. Ltd. (NYSE: STP) shares are trading higher today after the company announced it signed an eight-year deal to buy polysilicon from DC Chemical Co. Ltd. Polysilicon is a major ingredient in the manufacturing of solar cells. If you think that the company won't fall by too much in the coming months now that it has this price for materials locked in place, then now could be a good time to look at a bullish hedged trade on STP.

After hitting a one-year high of $90.00 in January, the stock hit a one-year low of $28.19 last week. STP opened this morning at $31.79. So far today the stock has hit a low of $31.79 and a high of $35.09. As of 12:45, STP is trading at $35.08, up $4.38 (14.3%). The chart for STP looks bearish and steady, while S&P gives the stock a bullish 4 Stars (out of 5) Buy rating.

For a bullish hedged play on this stock, I would consider an April bull-put credit spread below the $25 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. This particular trade will make a 4.2% return in just one month as long as STP is above $25 at April expiration. Suntech would have to fall by more than 28% before we would start to lose money.

STP hasn't been below $25 at all in the past year and has shown support around $30 recently. This trade could be risky if the demand for energy drops off, but even if that happens, this position could be protected by the support the stock might find around $30.

Brent Archer is an options analyst and writer at Investors Observer. At publication time, Brent neither owns nor controls positions in STP.

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Analyst initiations: Suntech Power, Premier Exhibitions, homebuilder sector

Eric Buscemi — 2008-02-27T11:57:00+00:00

Filed under: Analyst reports, D.R.Horton (DHI), KB HOME (KBH), Toll Brothers (TOL), Analyst initiations, Suntech Power Hldgs ADS (STP)

MOST NOTEWORTHY: Suntech Power, Premier Exhibitions and the Homebuilders Sector were today's noteworthy initiations:

Citigroup named Suntech Power Holding (NYSE: STP) their top pick for China solar due to its leading scale and technology roadmap for higher cell efficiency, initiating shares with a Buy rating and $55 target.
Merriman believes Premier Exhibitions (NASDAQ: PRXI) can move to the $14.50-$17.00 through the continued monetization of the company's current tours, the launching of additional tours and the value of the Titanic artifacts on hand. The firm started shares with a Buy rating.
Lehman initiated D.R. Horton (NYSE: DHI), Ryland Group (NYSE: RYL), Toll Brothers (NYSE: TOL) with Overweight ratings and an $18 target, $31 target and $27 target; KB Home (NYSE: KBH) with an Equal Weight rating and $24 target; and Hovnanian Enterprises (NYSE: HOV) with an Underweight rating and $8 target.

OTHER INITIATIONS:

Citigroup initiated Yingli Green Energy (NYSE: YGE) with a Hold rating and $24 target.
UBS initiated Citrix Systems (NASDAQ: CTXS) with a Neutral rating and $38 target.
JP Morgan initiated Biodel (NASDAQ: BIOD) with an Overweight rating.

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Option update: Suntech Power shares plummet after Q4 and weak guidance

Paul Foster — 2008-02-20T09:12:00+00:00

Filed under: Options, Suntech Power Hldgs ADS (STP)

Suntech Power (NYSE: STP) is recently trading at $36.75 in pre-open trading, below its close of $45.89 (down 20%).

Thomas Weisel says: "First Glance at 4Q results and guidance; Weak guidance will likely pressure shares."

STP overall option implied volatility of 73 is near its 26-week average according to Track Data, suggesting non-directional price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

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Solar stocks are ready to heat up

Timothy Sykes — 2008-01-30T11:35:00+00:00

Filed under: Apple Inc (AAPL), Oil, Suntech Power Hldgs ADS (STP), Stocks to Buy

Over the past few months, solar stocks have had more than their fair share of ups and downs. Last month, they were so volatile it seemed as if I was writing an article about another solar play every other day, introducing investors to the sector by casting the characters in a fictional movie to be called Solar's Eleven, encouraging buying on breakouts in this article, and warning investors to drop them as if they were poorly selling music artists in this article. (Yes, I go over the top sometimes, but it's all to help you better understand how the stock market works.)

I know buy and hold investors don't understand how I can change my mind so quickly about the same companies, but as you can tell from the charts of stocks like Evergreen Solar (NASDAQ: ESLR), Solarfun (NASDAQ: SOLF), DayStar Technologies (NASDAQ: DSTI), Akeena Solar (NASDAQ: AKNS), Canadian Solar (NASDAQ: CSIQ) and China Sunenergy (NASDAQ: CSUN), remaining nimble is key to profiting from this sector's volatility. In fact, only JA Solar (NASDAQ: JASO) and MEMC Electronic Materials (NYSE: WFR) have managed to hold near their highs.

So, what changed? Perception. While these companies all still have great potential, they are speculative and in bear markets, speculative stocks, especially those that don't continuously put out spectacular news, get crushed -- as shareholders in Apple (NASDAQ: AAPL), Baidu.com (NASDAQ: BIDU) and VMware (NYSE: VMW) have learned the hard way.

Sure, oil and other commodity prices have dipped and even after dropping over 30%, stocks like First Solar (NASDAQ: FSLR) and Suntech Power (NYSE: STP) still sport some pretty hefty PE ratios, but you have to remember this is one fast growing sector. And, just to add to the fun, there's a new solar IPO with some seriously booming revenues and profits in Renesola (NYSE: SOL) that just yesterday debuted under the radar.

Since short sellers are sitting on some nice gains and will probably look to cover some of their positions before these companies report earnings in the coming weeks, I believe the time is right to jump back in here. Maybe not with both feet, but scaling into positions has always worked for me. I don't expect any of these stocks to go straight back to their highs-not in this market-but I do think these stocks will bounce solidly off their lows here.

Disclosure: Long SOLF.

Timothy Sykes writes the blog timothysykes.com, is a former hedge fund manager, star of the TV show Wall Street Warriors and author of the book, An American Hedge Fund: How I Made $2 Million as a Stock Operator & Created a Hedge Fund

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SunTech Power (STP) on the move

Brent Archer — 2008-01-14T13:11:00+00:00

Filed under: Major movement, Analyst reports, Good news, Industry, Options, Technical Analysis, Suntech Power Hldgs ADS (STP)

Suntech Power Holdings Co. Ltd. (NYSE: STP) shares are rising this morning, extending gains made after Friday's "Buy" reiteration by Calyon Securities and helped along by higher oil prices. Coming up later this month is the annual U.S. State of the Union Address, and alternative energy is expected to be a major topic. The industry as a whole could be buoyed by investors speculating that there may be new initiatives for that industry. If you think that the company won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on STP.

After hitting a one-year low of $31.41 in June, the stock hit a one-year high of $90.00 this month. STP opened this morning at $68.58. So far today the stock has hit a low of $67.72 and a high of $70.00. As of 10:55, STP is trading at $69.62, up $2.81 (4.2%). The chart for STP looks bullish but deteriorating, while S&P gives the stock a positive 4 STARS (out of 5) buy rating.

For a bullish hedged play on this stock, I would consider a February bull-put credit spread below the $50 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. This particular trade will make a 6.4% return in just 5 weeks as long as STP is above $50 at February expiration. SunTech would have to fall by more than 28% before we would start to lose money.

STP hasn't been below $50 since October and has shown support around $60 recently. This trade could be risky if energy prices relax if the economy keeps weakening, but even if that happens, this position could be protected by general positive investor sentiment about the prospects of alternative energy.

Brent Archer is an options analyst and writer at Investors Observer. At publication time, Brent neither owns nor controls positions in STP.

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The 52-week high club

Douglas McIntyre — 2008-01-02T16:51:00+00:00

Filed under: After the bell, Suntech Power Hldgs ADS (STP)

This would seem to be a hard day to find stocks hitting new highs, but some industries produced winners.

Silver Wheaton Corp. (NYSE: SLW): It was a good day for metals stocks. This one ran up to $19.16 against a 52-week low of $8.83.

Southwestern Energy Company (NYSE: SWN): It was a good day for energy stocks. SWN moved higher to $58.63 from 52-week low of $31.14.

Peabody Energy Corporation (NYSE: BTU): This coal company traded up to $63.97 from 52-week low of $36.20.

Apache Corporation (NYSE: APA): This oil and natural gas operator hit $111.78 compared to 52-week low of $63.01.

Akeena Solar, Inc. (NASDAQ: AKNS): This company licensed technology to Suntech Power Holdings Co., Ltd.(ADR) (NYSE: STP). It moved to $11.99 from 52-week low of $2.97.

Douglas A. McIntyre is an editor at 247wallst.com.

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United Technologies (UTX) gets into solar energy

Douglas McIntyre — 2008-01-02T09:26:00+00:00

Filed under: Deals, United Technologies (UTX), Oil, Suntech Power Hldgs ADS (STP)

Solar energy presents two challenges. The first is to gather energy from sunlight. The other is to store it for future use. United Technologies (NYSE: UTX) believes that it has found a solution for the second problem.

According to The Wall Street Journal, UTX unit "Hamilton Sundstrand is scheduled to announce that it has teamed with US Renewables Group to commercialize a new type of solar-power plant that will use molten salt to store the sun's heat."

Solar power stocks were among the biggest winners on Wall Street in 2007. As an example, shares in SunTech Power (NYSE: STP) moved from a 52-week low of $31.41 to close the year at $82.32. As long as the price of crude stays high, solar power shares are likely to do the same.

The United Technologies announcement is a sign that sun-driven alternative energy is entering the big time. The company had almost $14 billion in revenue last quarter, but some of its businesses like cooling and elevators are likely to face slower growth.

What better idea for UTX than to use some of its huge resources to get into one of the fastest growing industries in the world.

Douglas A. McIntyre is an editor at 247wallst.com.

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I'm in love with Evergreen Solar (ESLR)

Timothy Sykes — 2007-12-27T10:56:00+00:00

Filed under: Technical Analysis, Suntech Power Hldgs ADS (STP), Stocks to Buy

Financial journalism is all about breaking news. News is easily researchable and journalists feel comfortable voicing their opinions. But the truth is that most news -- no matter how fabulous a company's PR firm makes it sound -- usually means little to a company's stock (it's more about the market's expectations, something that is not very researchable).

And that's why I prefer to write about companies whose stock charts are breaking out, as I have with Mercadolibre (NASDAQ: MELI) here, Solarfun (NASDAQ: SOLF) here, INVESTools (NASDAQ: SWIM) here and TheStreet.com (NASDAQ: TSCM) here (all of which are nicely, and somewhat predictably, higher) and LDK Solar (NASDAQ: LDK) here (which, in my defense, never reached my breakout price of $77; instead it tanked, exemplifying the risks involved with buying stocks before breakouts). After all, while it's fun to learn about breaking news and new products, it's even more fun to profit from the stock market (my apologies to all financial journalists, but you guys just aren't traders)!

So, let me introduce you to the latest breakout play, solar cell marker Evergreen Solar (NASDAQ: ESLR). Think of its technical breakout as breaking news. Sure, sure, this company's got proprietary technology that supposedly gives them a competitive advantage over competitors like First Solar (NASDAQ: FSLR) and Suntech Power (NYSE: STP), whose market caps are 12x and 20x, respectively, that of ESLR, but that's nothing new. Most analysts like them and they've even got some rosy projections, here, take a look (even though it's still very early in the game for them). But since I don't trust analysts or corporate management (their interests just aren't aligned with investors), none of that information (misinformation, cough, cough) interests me.

I care more about this stock's near-perfect chart. Investors already have seen a nice double in 2007, but more importantly, just yesterday, the stock broke out to a new two-year high, closing at $18.84. And, it's not for a lack of trying, as it had already failed to breach the magical $17.75 breakout price twice in the past two months. The third time was definitely the charm and this makes for one giant cup and handle chart pattern, which, in my experience, is a very bullish sign. And that's why I just bought shares - let's see if this stock's got legs.

DISCLOSURE: I own shares of ESLR and SWIM, although I sold my positions in SOLF and TSCM far too soon.

Timothy Sykes writes the blog timothysykes.com, is a former hedge fund manager, the star of the TV show Wall Street Warriors and author of the book, An American Hedge Fund: How I Made $2 Million as a Stock Operator & Created a Hedge Fund

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