Solar Energy Stocks

Let’s get the obvious solar energy stocks out of the way first.

First Solar (NASDAQ: FSLR), SunPower (NASDAQ: SPWR), Suntech Power (NYSE: STP).

Buy them. Hold them. Watch them grow. Love them.

I just hate when a so-called analyst talks about these stocks as though he’s discovered something new.

First Solar has delivered nearly 1,000% since its IPO. It has no negative silicon exposure because it uses cadmium telluride technology instead of mono- or multi-crystalline silicon.

SunPower and Suntech are the clear and established leaders in the silicon solar game.

These are no-brainer solar investments. Any analyst or website that says otherwise, or tries to pander those picks as new, insightful advice is a hack, plain and simple.0

They’ve been the leaders since the beginning. And they’ll be the winners for years.

Real Solar Company Investment Advice

After you’ve bought the aforementioned solar stocks, you’re ready for advanced solar investment advice.

The first thing you need to do is get your hands on some Chinese solar companies.

I’m referring here to:

• JA Solar (NASDAQ: JASO)
• Yingli Green Energy (NYSE: YGE)
• Solarfun (NASDAQ: SOLF)
• Renesola (NASDAQ: RSOL)
• Chinese Sunergy (NASDAQ: CSUN)

This group of stocks has been trading hand in hand lately. A bad day for one means a bad day for the entire group.

For the sake of brevity, any of these stocks is a value under $15 or $16, except for Chinese Sunergy, which is a bargain under $11.50.

Next, you need to get a piece of what I like to call the mid-range solar companies. These are solar companies that have an established foothold in the industry, but aren’t quite to the level of First Solar and SunPower.

While offering relative stability in the solar world, these following stocks are certainly capable of making a remarkable one- or two-day run, given the right earnings or contract announcement.

These mid-range solar stocks include:

• LDK Solar (NYSE: LDK)
• Canadian Solar (NASDAQ: CSIQ)
• Energy Conversion Devices (NASDAQ: ENER)

From there, in effort to diversify your solar holdings, I’d head away from the producers and on to the installers.

This is a unique group. They don’t move in line with the rest of the solar stocks because the underlying fundamentals are drastically different.

Solar installation isn’t about using securing feedstock supply, using it efficiently, creating more efficient cells, and constantly increasing capacity.

Instead, solar installation is more like construction, where logistics, workforce, subcontractors, power purchase agreements, and a just-in-time inventory play more important roles.

What’s more, congress has failed to renew the solar investment tax credit (ITC), which expires at the end of the year. This has led investors to shy away from installers thus far this year.

But mark my words, the ITC will be extended, probably by November. And when it is, these top solar stocks are going to fly:

• Akeena Solar (NASDAQ: AKNS)
• Real Goods Solar (NASDAQ: RSOL)
• Clear Skies (OTCBB: CSKH)

Solar ETFs

Of course, another way to invest in this hot sector is through the ever popular exchange traded fund (ETF)

The only two on the market are:

• Claymore/MAC Global Solar Energy (NYSE: TAN)
• Market Vectors Solar Energy (AMEX: KWT)

To be honest, each of these solar ETFs is negative for the year, but they’re starting to turn around, and will inch higher along with the broader solar sector.

Each of those ETFs hold a fair amount of the stocks mention thus far in this article, and should provide relatively stable growth in the solar sector.

These ETFs also hold a good portion of international stocks and silicon companies, which I will cover in a later article.

To green energy and green profits,

Chris Hunter
www.CleanEnergySector.com