Hey, Sam! Odd this thread doesn't see more traffic; thanks for starting it. Should we attempt more than posting some articles about trends? Make some picks, discuss those? I missed the solar ride this past year, having been bitten by the sector some years ago by Astropower. I can't bring myself to invest in oil patch companies, but I'm looking for alternative energy and green plays with some room to run.
One might be CREE, the pure play LED company that has been around for a good while and is making reasonable money. The basic thesis being that LED light are the coming thing in environmentally friendly lighting (compact fluorescents being merely a first step). A possible take out candidate. Not cheap, but cheaper than solar companies. A "professor" at Minyanville made the case for it here today:
minyanville.com
Anyhow, while I start digging into CREE and others, do posters here own any of these, and care to disclose?
Cree appears to have a strong balance sheet, with no debt, and some $250 million in cash. Trades at a bit more than 2X book, which seems pretty reasonable, but less so are the P/S metric of 6, and the 5 yr forward PEG ratio of about 6, both of which seem high. Are analysts underestimating potential of LED lighting in newer markets? That would be a good question to address. If so, it'll grow nicely into those figures. Insiders have been doing some selling recently, and CREE sports a pretty high short ratio.
Cree reports earnings on the 22nd of this month.
Others I might check into . . . ORA, MXWL, LSGP, CPST, FCEL, EEEI, CPTC, NGLPF, FNVRF
Cheers, Tuck |
