I don't get it.
Solarfun (NASDAQ: SOLF) had two great announcements this morning.
First, they announced a deal to supply Q-Cells (XETRA: QCE) with 100 MW of solar modules per year, for three years—making it a 300 MW deal. The deal is in effect from 2009 through 2011.
This is huge. Q-Cells is the world's largest manufacturer of solar cells, and tipping their hat to a small Chinese manufacturer serves to validate Solarfun's position in the market.
Second, Solarfun reported stellar 2Q earnings today, beating earnings estimates by $0.13, beating revenue estimates, raising 2008 shipment guidance and tripling its second quarter profit.
Solarfun fell 10% in premarket and remained about that low throughout the day.
This is crazy.
We're talking about a company that just recently began rebuilding momentum, climbing 71% since August 11th.
One would think that when a great company has two great announcements in one day that the stock would pop nicely.
But such is the state of the current overall market.
Similar plights have occurred with Renesola (NYSE: SOL), Canadian Solar (NASDAQ: CSIQ), and Trina Solar (NYSE: TSL).
Each had decent earnings announcements in the last few weeks, only to receive a nice bump and then head south.
Same for GT Solar (NASDAQ: SOLR).
Don't get me wrong, solar has had a nice bump lately.
But as a group, solar stocks are still in red territory for the year—a glaring indication that they are still cheap.
My advice is to seek out the cheap ones and load up. Solar stocks want to go higher. It's only a matter of time.
Of course, my service Alternative Energy Speculator is navigating a group of savvy investors through these murky waters.
Those investors have already taken good profits, and are aligning themselves for even more.
In the last few weeks we made:
17% on JA Solar (NASDAQ: JASO)
15% on Suntech Power (NYSE: STP)
16% on Yingli Green Energy (NYSE: YGE) and
80% on Solarfun Power Holdings (NASDAQ: SOLF)
Of course, those gains are long gone. But the next round is just getting started.
For full guidance on how to profit from solar stocks, all things alternative, and to become a member of this savvy group of investors, check out the Alternative Energy Speculator.
Call it like you see it,