It is important to note, that while these single-week gains certainly seem impressive, it is crucial to dig beneath the surface to see what has caused these extraordinary gains.
In a market (as measured by the
S&P 500) that has declined about 3% since the beginning of 2008, equity investors have had to look hard to find good returns in their portfolios. By
diversification into the right global companies, though, savvy investors have been able to beat the market. This has helped them to steer clear of the slowing U.S economy that has been the cause of most of the pain in the current equities market. (Read more on diversification in our articles
Introduction To Diversification, and
The Importance of Diversification.)
This can be seen in this week's list of bulls, as China leads the pack. My favorite on this list, though, was introduced not long ago in our article
Earth Day Stocks To Know.
Basking In Solar
Solar stocks across the globe were boosted this week, as witnessed in the three solar stocks on our gainers list this week. Leading the charge is ReneSola, which blew everyone away with a 50% gain this week on news it topped
Q1 expectations. First quarter net
revenue grew over 240% to $124 million compared to revenue of just $35 million in Q1 2007. Revenue even increase almost 30% from the $96 million that was seen in last year's fourth quarter. Along with increased revenue, ReneSola also increased profits; bringing in $17.7 million in net
income compared to $6.8 million in the same quarter last year - an increase of 160%!
Not only has ReneSola released earnings that have impressed, it has raised its
guidance going forward. ReneSola recently announced it has signed a six-year agreement to supply 525 megawatts of solar wafers to Taiwanese solar-cell maker Gintech Energy. An increase of only 15 megawatts of production (to 67 megawatts for Q1) caused revenue and profits to soar skyrocket this quarter. Just imagine what this new huge deal will mean. It represents an increase in production of roughly 22 megawatts per quarter for six-years (calculated as 525 / 6 years / 4 quarters).
ReneSola, is a solar stock that is making money, and growing at an exponential rate. The industry is constantly growing as the world becomes more consciences about how it finds its energy, and Renesola is situated in a country whose energy demands are growing just as fast as its economy- China.
China's
GDP growth was estimated at 11.4% in 2007, and Renesola is in a position to continue making money for its investors.
Stock Picking Community members agree, with ReneSola boasting a 100% bullish community sentiment. Members such as 7mood, and noreyes feel that high oil prices will be good for this provider of alternative energy. 7mood also mentions that the company "saves costs with a lot of efficiency." How else could Renesola produce increases in net income so easily?
Add Your Two Cents
What do you think will happen with ReneSola going forward? Will its new production contracts and business efficiencies continue to keep this bull's momentum on the upswing? Be sure to join me (
aytonmm) in the
FREE Stock Picking Community to share your thoughts and see what other investors are saying.
