I know we’ve got a problem. You know we’ve got a problem. Heck, even the
politicians know we’ve got a problem. We’re addicted to oil!
Thanks to the high price of oil, alternative technologies are getting more
practical and more appealing all the time.
They won’t cure our oil addiction overnight. Over time, these alternative
sources — which I always believed could work — will supply more and more of our
energy needs.
Take solar power, for example. It’s the next big thing in energy.
*** In January, the California Solar Initiative was approved — providing $2.8
billion in incentives toward solar development over the next 11 years.
*** Energy-gobbling China launched an initiative which could result in up to 100
gigawatts of renewable energy by 2020.
*** In Germany, excess solar power can be sold back to utilities at a 15%
premium. And that has created a huge run on solar photovoltaics — there are
worldwide shortages.
Imagine! Just two years ago, solar-power companies struggled to turn any profit.
Now — thanks to our energy-crisis wake-up call — the world can’t get enough
renewable energy. Solar is leading the way!
Solar power — modules, system components and installation — was a small $4.7
billion market in 2003.
But according to the research firm Clean Edge, it will grow to $39.2 billion by
2014. So you see, this is the time to own solar power stocks. And frankly, I
think that $39.2 billion may be on the low side.
After all, consumers around the world are getting hit with a triple whammy.
When you hit Americans in the wallet — and we’ve been walloped hard — they sit
up and take notice.
This is a go-go growth industry. And if you’re a serious growth investor, you’ve
got to get some skin in the game.
My recommendation, SunTech Power Holdings (NYSE: STP), is a double play —
both on solar power and on China’s insatiable hunger for energy.
SunTech Power Holdings is among the world’s top 10 makers of photovoltaic
cells — and owns a huge cost-to-performance advantage over most competitors.
In plain English, they manufacture inexpensive cells — on a large scale — which
convert sun energy to electrical power very efficiently.
In fact, studies show that its technology boosts power conversion up to 30%-40%.
Pretty amazing numbers. And management is taking full advantage. They have
increased manufacturing capacity twelvefold in less than three years — and plan
to double capacity again by the end of this year.
At last report, revenues were up 187.6% year-overyear — with an impressive net
margin of 14.7%. And annual sales have grown to $85 million from just $3 million
two years earlier.
But management ain’t resting on its laurels.
Industry watchdog DigiTimes reports that STP will invest another $20
million in R&D during the next two years. The goal? To further improve the
energy conversion efficiency of solar cells.
And here’s the kicker.
This is a China-based company — one you can easily buy right on the NYSE. So
it’s right in the middle of what will become the hottest growth market for Clean
Energy.
That’s why the firm plans to increase its domestic sales from 20% of its total
now to 50% in five years. It’s low-hanging fruit that these guys will pick with
ease!
With this stock you get it all: Good value… innovative technology… fast growth…
all in the world’s hottest market.
Buy SunTech Power Holdings (STP) under $36.
