Opinion on  Evergreen Solar Inc (ESLR)     Sector: Technology  >  Industry: Semiconductors
Buy Evergreen Solar Ahead Of Earnings?

Well I certainly can't say that I would put too much down on the table before earnings on Thursday , but this certainly is a good stock to consider for the long run. Evergreen Solar ( eslr ) is small company that is quickly expanding it's manufacturing facilities not only here in the states, but in Germany as well with it's joint venture with Everq . Germany is arguable the leader in the world when it comes to Solar technology, so ESLR has it's eggs in the right basket. They are still operating at a loss though, so this play is not for the faint of heart. They are also very small compared to the other players out there with only a 960 million dollar market cap, but with great risk comes great rewards. Here is a look at their 1 year chart courtesy of Google Finance .


I believe things can only get better for this company as governments around the world begin to offer even more incentives for green energy. Climate change is becoming more of a reality ever day and I believe we are soon going to be scrambling to provide the world with cleaner forms of energy.

One of the things that separates Evergreen Solar from the rest of the solar industry is the fact that they manufacture wafers, cells and panels all under one roof which will allow them to more efficiently control costs, and perfect the manufacturing process. They also produce panels that have the smallest carbon footprint of any panels on the market today, and with their revolutionary quad furnace I think Evergreen has a leg up on the competition.

Is Evergreen the best solar play out there right now? Maybe not, two others to consider are SunPower Corp ( SPWR ) and Suntech ( STP ) but I think that a year or two down the line Evergreen will be vastly outperforming both of these stocks... What are your thoughts?

NASDAQ ESLR is trading at $9.60 as I write this...

As another year comes to close, we can't just sit back and rest on our gains from the year that was 2007. Sure, Evergreen Solar (eslr), Ormat Technologies (ora), Yum Brands (yum) and the almighty Google (goog) were all great plays for this past year, but you have to ask yourself, what is next? What will be the best bull markets of 2008?

I believe 2008 will be the another year of the green! Alternative energy and any pollution reduction company will reign supreme as the governments around the world, (maybe even ours here in the states) begin to make these pressing issues a priority. It seems like you can't turn around these days and not hear something about climate change, pollution and expensive dirty energy. Stocks like Zoltec (zolt), which is one of the leaders in producing carbon fibers used in Wind Turbines, and Evergreen Solar (eslr) are going to continue their run in 2008 as more and more investors realize the explosive growth these industries can provide. With oil prices continuing to climb, manufacturing cost dropping due to government subsidies and a general increase in demand, the whole sector should do well. Solar, Geothermal, and wind power are the future, and now is your chance to make some green off of these clean renewable energy companies.

The next year will also be another year to watch China continue to expand at a insane pace. While I am not too fond of Chinese stocks, I think that Yum Brands is a way to get great Chinese exposure without investing in Communism. Kentucky Fried Chicken is opening up a store a day in China, and will only benefit even more with the buzz and increased traffic from the coming Olympics. There is a lot of opportunity in the Chinese market, but I just have something against a country that censors it's own news and internet. Enter at your own risk...

Two picks that have turned a bit soar since I recommended them, Boeing (ba) and Royal Bank Of Canada (ry), I still believe will do well in 2008. Sure, these are two of the less exciting stock picks out there , but that doesn't mean there not worth owning over the long term. Boeing has orders lined up for years to come with countries around the world, and Royal Bank Of Canada was brought down somewhat unfairly by the downfall in US banks. They both pay a dividend, BA at 1.78% and RY at 3.98% yields. Not only that, but both companies just raised their dividend in their last quarter, which shows the confidence the management has in their future income.

My last two are Vacso Data Securities (Vdsi) and Google , no real surprise there, I have been behind these two for literally years now, and I think they will continue to vastly outperform the market. Vasco is still looking cheap here after it's big fall, and Google will dominate in 08 with it's mobile business, the ever-growing monster that is Internet and those other 100 projects they are working on.

So, am I still worried about subprime, a weak dollar, a possible recession and falling home prices? Well of course, but these stocks are all long term investments, and can be bought over time and many different prices just like any other stock out there. Just remember, never buy all at once , and always do the proper research before you ever buy a stock. It also helps if you really are interested in what the company itself that you are putting your hard earned money into, this can make the research much less tedious.

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