SOLF SOLARFUN POWER HOLDING, dirty cheap green bargain, even better than JASO September 16, 2008Posted by deminvest in China stock, growth stock, investment, JASO, nasdaq, Nasdaq stock, Single stocks, Solarfun, SOLF, stocks.
Tags: China, grwowth, investing, investments, nasdaq, solar, Solarfun, SOLF, stocks
I heard on the radio about an investor who couldn’t figure out how such a good stock could have fallen so low. After some research, I found out that there is two main worries:
1) Polysilicon, the raw material used to make solar panels is become more expensive due to great request. Apparently Solar fun should have more troubles than others because SOLF does not have long term contracts.
2) Solar panels are becoming less expensive for customers.
those factors may cut margins into Solarfun’s earnings, but I believe the product chain is driven by customers buying solar panels. As long as that demand is expanding, all the supply chain from raw materials to delivered products will find its balance.