The two sectors that make the most sense to me fundamentally are international growth areas like China and energy related issues (which are international typically). Combine these two sectors together and what do you get? JA Solar (ticker: JASO), a Chinese solar cell company that did an IPO about 7 months ago. This is a stock that I highlighted back at the beginning of the summer when it was 24, that was before it doubled and has now pulled back. Well I still like it, and it is still in a strong uptrend. Furthermore, earnings were great and an analyst upgraded the stock last week following the numbers.
Disclosure: I own JASO calls
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15-Aug-07 07:28 ET In Play MEMC Elec and JA Solar initiated with Overweights at Thomas Weisel -- details (55.15 ) : As mentioned at 6:53, Thomas Weisel initiates MEMC Electronic (WFR), JA Solar (JASO) with Overweights and $78 and and $42 tgts respectively. For WFR, firm says despite significant stock price appreciation over the last two years, they continue to believe that there is upside to near-term ests, in particular in the back half of 2007 and for 2008. They see the upside stemming from the change in mix from semiconductor wafers toward solar wafers and polysilicon sales, and believe many investors are underestimating the impact that this mix shift will have on the financial profile of WFR. For JASO, firm says its aggressive expansion plans and a secure long-term supply of silicon wafers, giving it a leg up over most of its China-based competitors. They believe JASO has secured all its polysilicon needs for 2007 and the bulk of 2008, the main raw material that goes into the manufacture of solar cells which is in short supply, the only other Chinese co to have most of 2008 polysilicon needs in the bag is Suntech Power
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