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Now Bullish on STP.

Look at SPWRA/B for the first part of this article. (Source Bapcha's Stocks)

Pick #2 SunTech Power. STP makes PV modules. In fact, Akeena Solar’s Andalay Panels are based on SunTech’s panels. Unfortunately, as an installer, AKNS is beyond the scope of discussion in this article. I picked STP ahead of FSLR - as STP’s manufacturing costs are similar to that of FSLR’s - despite the fact that SunTech uses Silicon. Added to the fact that silicon prices have nowhere to go except down, SunTech can easily increase their gross margins from the current mid-20’s in % to about 34%. SunTech’s current relative valuation (in light of its projected growth rate) is even cheaper than SunPower’s. STP at $10.10 is valued at 1.1x TTM sales, and a TTM PE of a little under 9. That is cheap for a company projected to grow at over 20% for the next five years, and one that currently is the lost cost leader in the world of integrated PV module manufacturers.

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