Blog > Oil and Energy > The American thing to do is buy Chinese solar companies
Share this article:
  • Print
  • Digg
  • del.icio.us
  • Facebook
  • Google Bookmarks
  • NewsVine
  • StumbleUpon
  • Twitter

The American thing to do is buy Chinese solar companies

Today's Financial News - Posted February 23, 2009

Capitalism has no borders. Our government may be socializing the American economy, but that does not mean they are eliminating the profit potential of overseas investments. The domestic solar industry may be a farce, but China may be a different story.

By Andrew Snyder, TodaysFinancialNews.com

Baltimore – (TFN): It is not difficult to feel unpatriotic these days. The government is meddling in our business, buying banks, changing mortgage contracts and I wouldn’t be surprised if they knocked on my door asking for my guns.

With the passing of Obama’s $785 billion plan, a slew of investors are expecting to get rich off the American solar industry. To believe that solar panels will ever come close to comparing to the power generated at coal-fired, nuclear or hydro-driven plants is a pipe dream. You may be able to power a few political campaigns, but no big cities will stop shoveling coal anytime soon.

Just in case a miracle occurs and the industry revolutionizes itself in the next few years, the American solar sector will still not be the winner.  If you think otherwise you are missing out on a very important lesson in economic history. Asia is going to beat the pants off of the American solar industry. In fact, just this morning, Japanese manufacturers were discussing ramping up their exports to take advantage of the stimulus infusion.

Capitalism has no borders

If I were to make an investment in the world’s solar industry, I would look right past the politically tense industry here at home and welcome the cheap labor and efficient factories of Asia. If the continent can out-produce us on everything from cars to children’s toys, why would solar panels be any different?

That is why savvy investors are looking at Chinese solar-cell manufacturers like LDK Solar (NYSE:LDK) of Xinyu City and Trina Solar (NYSE:TSL) of Changzhou.

There are two positive aspects about both of these companies that should get investor’s attention. First, they both trade readily on the New York Stock Exchange. That means they are liquid and you will have no problem buying or selling them at market value.  In fact, both of these companies trade more shares each day than many of their highly touted American competitors.

Most importantly, these two companies are trading in dirt-cheap territory. In the last year, LDK solar has dropped from a high of $52.40 to today’s 52-week low of $5.51. The prices at Trina solar are almost identical. This is your chance to get into the solar industry with a player that has a global exposure, not just a market near some left-wing congressman’s house.

Writing about and buying these Chinese companies may be “un-American,” but so is nationalizing banks, massive welfare payouts and “spreading the wealth.” In fact, the truly American thing to do is make money wherever you can. In this case, that means look to Asian solar-cell manufacturers for big profit potential.


Next Article: Retailer Slump: Time to buy?

Related Articles

Posted by Andrew Snyder · Filed Under Oil and Energy 

Share this article:
  • Print
  • Digg
  • del.icio.us
  • Facebook
  • Google Bookmarks
  • NewsVine
  • StumbleUpon
  • Twitter

 Add to Technorati Favorites | Follow Us on Twitter!

One Response to “The American thing to do is buy Chinese solar companies”

  • Brittancus Says:
    February 23rd, 2009 at 5:56 pm

    In this long downturn in our economy–THE PEOPLE– must impress on our politicians to remove ALL the 40 million illegal nationals (Heritage Foundation) from this nation.

    Every parasite business who hires foreign nationals must be held accountable with prison terms. Powerful lawmakers like Sen. Harry Reid D-NV) killed the people only real tool (E-VERIFY) to stop illegal immigration for good. That tells you where his loyalty lies? Unemployment is off the scale, but he and many other Democrats including Governors, Mayors and other officials still are giving government benefits to illegal aliens?

    E-Verify comes up for a vote in March and should be made permanent, to halt illegal hiring. Immigration reform must start in the workplace, so illegal aliens are pinpointed and deported or self-deport themselves. Hundreds of billions of dollars go to the welfare of illegal alien families annually, including medicaid.

    Deluge the Washington Switchboard at (202) 224-3121 In addition you can call President Obama at 202-456-1111. Switchboard: 202-456-1414

    Sitting back and doing nothing is what corrupt politicians expect of THE PEOPLE? Read the truth at JUDICALWATCH, NUMBERSUSA, AMERICANPATROL, CAPSWEB.

Your comments are welcome