Tuesday, October 23, 2007

Buy Evergreen Solar Ahead Of Earnings?

Well I certainly can't say that I would put too much down on the table before earnings on Thursday, but this certainly is a good stock to consider for the long run. Evergreen Solar (eslr) is small company that is quickly expanding it's manufacturing facilities not only here in the states, but in Germany as well with it's joint venture with Everq. Germany is arguable the leader in the world when it comes to Solar technology, so ESLR has it's eggs in the right basket. They are still operating at a loss though, so this play is not for the faint of heart. They are also very small compared to the other players out there with only a 960 million dollar market cap, but with great risk comes great rewards. Here is a look at their 1 year chart courtesy of Google Finance.

I believe things can only get better for this company as governments around the world begin to offer even more incentives for green energy. Climate change is becoming more of a reality ever day and I believe we are soon going to be scrambling to provide the world with cleaner forms of energy.

One of the things that separates Evergreen Solar from the rest of the solar industry is the fact that they manufacture wafers, cells and panels all under one roof which will allow them to more efficiently control costs, and perfect the manufacturing process. They also produce panels that have the smallest carbon footprint of any panels on the market today, and with their revolutionary quad furnace I think Evergreen has a leg up on the competition.

Is Evergreen the best solar play out there right now? Maybe not, two others to consider are SunPower Corp (SPWR) and Suntech (STP) but I think that a year or two down the line Evergreen will be vastly outperforming both of these stocks... What are your thoughts?

NASDAQ ESLR is trading at $9.60 as I write this...

1 comment:

  1. Check out APV on TSX-V and frankfurt Exchange. Very Small solar player building $35 million Plant with money from German Gov grant.