Best stock for China Olympics? Suntech (STP) Solar panel producer August 6, 2008Posted by deminvest in China stock, growth stock, investment, nasdaq, Nasdaq stock, Single stocks, stock I own, stocks, STP, suntech.
Tags: China, panel, pollution, solar
I did a nice experiment: I opened Google news and typed: China Olympics
70% of the articles that came out contained the one of the words: pollution, smog, grey sky.
Also 70% of thereferred to human rights.
One of those articles is titled “Proud nation plays host and tourist in transformed capital”. Indeed China is a proud nation.
Unfortunately, no matter how many medals Chinese athletes will get, no matter how fast Chinese Economy will grow, the entire World willthe for having to breathe dirty air. And a proud nation doesn’t like to have a capital city by everyone.
During Olympics games China shut all factories around Beiijin and stopped most of its cars. I’m sure the government will want to address the issue also on a longer term and not only in the capital city.
Fortunately China has a great resourse that can be part of its pollution fighting strategy: China has World’s largest solar panels producer: Suntech Power Holdings.
Suntech is a large company with its 8,000 employees. Suntech is now growing with Qtrly Revenue Growth (yoy):76.10%, and Qtrly Earnings Growth (yoy):113.80% just exporting its Solar Panels to Europe and US. When Chinese iternal market will add to that figure we will see a Baidu – like growth.
Adding to all that good news the fact that STP shares are not expensive with their Forward P/E:13.21, I could resist the temptation to add up to my 10 free STP shares that I got last year with my World famous free stock strategy.
I just bought 23 STP shares at $33.82 each spendig a total amount of $777.86