Solar

First Quarter 2011 Solar Portfolio Review

With the first quarter of 2011 coming to a close I thought I would give an update on how our portfolio performed and how it is structured going forward.

2010 Performance Review = + 43% vs +13%

We started 2010 with our “Solar Seven Stocks” – HSOL, JASO, JKS, LDK, SOL, SOLR and TSL. We purchased 1,000 shares of each of these stocks. They ended 2010 with a terrific annual gain of 43%. This more than 300% outperformance is even more impressive when you consider that the markets on the whole were up 13% and all of the other solar stocks were down approximately 12%.

We started 2011 with the same 7 stocks, but we have sold some positions, which we outlined last month when the market risk plus technical factors triggered some rebalancing of the portfolio.

The current portfolio stocks are:

JASO – 1,000 shares

JKS    –    500 shares

LDK   –    500 shares

SOL    –    500 shares

SOLR – 1,000 shares

TSL     – 1,000 shares

Note: we sold the entire 1,000 shares of HSOL and ½ of the positions in JKS, LDK and SOL.

2011 First Quarter Performance = +32% vs +5.56%

As of the close of the first quarter, the Solar Portfolio (realized gains + paper gains) is up 32%.  This compares to the markets as a whole being up 5.56%, which is almost a 600% outperformance to the markets in general.

May other solar stocks performed very well in the first quarter, but I think much of this performance may be shortlived and could be due to the nuclear incident in Japan. Our current 6 stocks still remain the strongest stocks in the solar sector.

Mr. Lynch has worked, for 34 years as a Wall Street security analyst, an independent security analyst and private investor 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 field. He was the contributing editor for 17 years to the Photovoltaic Insider Report, an early publication in PV that was directed at industrial subscribers, such as major energy companies, utilities and governments around the world. He is currently a private investor and has from time to time been a financial/technology consultant to a number of companies. He can be reached via e-mail at: [email protected]. Please visit his website for the promotion of solar energy – www.sunseries.net