The World's #1 Renewable Energy Network for News, Information, and Companies.
Untitled Document

What About Investing in Solar PV Stocks?

Why haven't there been many stories on what a great investment solar PV has been this year? For example, First Solar (FSLR), a maker of solar panels has gone up over 2000% so far this year. Other super investments are SunPower (SPWR) from California or future star Evergreen Solar (ESLR) just going profitable being a new start. They are all American based USA Solar Companies.--Jim Stack, Chandler, Arizona

Mr. Stack you are indeed correct that the common stock of these three companies would have been great investments. They have each had incredible year to date appreciation and as you can see below, they easily out performed the Dow Jones and NASDAQ averages. 

 

Symbol

Company Name

Stock Gain 1/1/07 thru 11/30/07

 

 

 

ESLR

Evergreen Solar, Inc.

70.9%

FSLR

First Solar, Inc.

623.5%

SPWR

Sunpower Corporation

225.8%

 

 

 

Indexes

 

 

 

 

 

DJIA

Dow Jones Average

6.6%

NASD

NASDAQ

10.3%

 

 

 

 

Since these stocks have each done so well I think it may be interesting to ask - what is there about these three stocks that may have made them do so much better than average?

I have followed all three of these stocks since their respective IPO's. I believe that they have done so well because each of these companies has a "differentiating factor" that sets it apart and as a result, they are viewed by Wall Street analysts and investors as being more attractive and consequently are given a higher multiple of earnings or potential.

What are these differentiating factors?

  • Potential Process Innovation - ESLR
  • Lowest Cost - FSLR
  • Highest Efficiency - SPWR

Evergreen Solar - ESLR has a unique technology for making photovoltaic material in the form of a ribbon, rather than an individual solar cell. It has the potential to produce a lower cost product and use significantly less silicon in the process.

First Solar - FSLR is the first "pure play" company** with a commercial product in the thin film area of Photovoltaics. It's product is the lowest cost on the market and has the potential to continue as the low-cost leader.

Sunpower Corporation - SPWR has the highest efficiency product on the market and is also a pure play company. This gives it a market niche in all areas where space is limited and a higher efficiency is needed.

If I am correct about these three stocks, this may be a useful guide to help evaluate other stocks and future IPO's to see if they to, have a differentiating factor that would set them apart and give them an advantage over their competition.

** Pure play company - is a term that indicates that the company has no other business, this is the only product area they are involved in.

J. Peter Lynch has worked, for 30 years as a Wall Street analyst, an independent equity analyst and private investor, and a merchant banker in small emerging technology companies. He has been actively involved in following developments in the renewable energy sector since 1977 and is regarded as an expert in this area. He is currently a financial and technology consultant to a number of companies. He can be reached via e-mail at Solarjpl@aol.com.

Untitled Document

RELATED ARTICLES

States Already Seek To Delay Clean Power Plan

Andrew Harris, Bloomberg Fifteen states led by coal-rich West Virginia asked a federal court to stall Obama administration rules intended to c...

Stolen Solar Panels and Sabotage A Challenge for Powering India With Renewable Energy

Anindya Upadhyay, Bloomberg Disappointment spread across Tarun Singh’s face when he saw that parts of his solar power microgrid in eastern India’...

Suntech Parent Company Buys Majority Share of US-based Suniva

Ehren Goossens Shunfeng International Clean Energy Ltd., the Hong Kong-based solar company controlled by billionaire Zheng Jianming,...

Sunrise in Pakistan as the Country Delves into Solar PV

Robert Harker Pakistan has joined the list of countries that are exploring solar power as a means to bridge critical energy generat...

PRESS RELEASES

Appalachian's Energy Center assists counties with landfill gas to energy projects

The Appalachian Energy Center at Appalachian State University recently completed a proj...

Array Technologies’ DuraTrack HZ v3 Continues to (R)evolutionize at SPI

Array Technologies, Inc. (ATI) prepares to showcase its recently launched tracking syst...

Redesigned HydroWorld.com Video Gallery

Hydropower news and information, and interesting promotional announcements are now avai...

30 days to GRC Annual Meeting & GEA Geothermal Energy Expo

The Geothermal Resources Council (GRC) has announced that it is only 30 days to go to t...

FEATURED BLOGS

Appalachian's Energy Center assists counties with landfill gas to energy projects

Activity supported with Z. Smith Reynolds Foundation funding BOONE—The Appalachian Energy Center at Appalachia...

Discounted Room Rates for Geothermal Event end Friday

Discounted room rates for GRC Annual Meeting & GEA Geothermal Energy Expo end Friday Room rates for this prestigi...

3 Reasons To Follow-Up

It’s very important to begin nurturing your relationship with a customer immediately after the project you sold...

Who are the Solar Early Adopters? - the “Tipping Point” is Looming

We all know why people go solar: investment purposes, immediate savings, environmental concerns, and grid independenc...

FINANCIAL NEWS

I have worked, for 33 years as an independent analyst and investor in small emerging technology companies. I have been actively involved in following developments in the renewable energy sector since 1977 and am regarded as an expert in this field...

CURRENT MAGAZINE ISSUE

Volume 18, Issue 4
1507REW_C11

STAY CONNECTED

To register for our free
e-Newsletters, subscribe today:

SOCIAL ACTIVITY

Tweet the Editors! @jennrunyon

FEATURED PARTNERS



EVENTS

Intersolar North America 2016

Exhibition: July 12 - 14, 2016; Conference: July 11 - 13, 2016 Intersola...

Intersolar South America 2015

Exhibition and Conference: September 1-3, 2015 Intersolar South America ...

Intersolar Europe 2016

Exhibition: June 22-24, 2016; Conference: June 21-22, 2016 Intersolar Eu...

COMPANY BLOGS

How To Recruit An Internal Ally

When you’re collecting information for a proposal, the person with...

The Proof Is Not Always In The Pudding

One of the best ways to turn a skeptical prospect into a buyer is to giv...

Pushing Beyond The Cushion

Efficiency projects are all too often viewed as “optional” o...

NEWSLETTERS

Renewable Energy: Subscribe Now

Solar Energy: Subscribe Now

Wind Energy: Subscribe Now

Geothermal Energy: Subscribe Now

Bioenergy: Subscribe Now  

 

FEATURED PARTNERS