Solarfun Power Holdings: Expect a Rally from Key Support

Solarfun Power Holdings <st1 :place="">Co.</st1>, Ltd. (SOLF) has had quite a bit of volatility during its 20 month span of being a public company.  The Chinese manufacturer of solar products came public at $12.50 towards the very end of 2006.  The company is expected to earn $0.93 per ADR this year and should grow earnings 25% or more in the following year.  With an earnings announcement coming up at the end of the month, and solar names beginning to catch a bid across the board, I thought it would be worth a closer look.

The latest quarterly report from SOLF revealed a company that is beating expectations and expanding capacity.  While IBD mentioned in January that the company expected to ship 70 to 80 Megawatts in 2007, the 2008 numbers are even more impressive.  Management raised its full year guidance to 160-180 MW and is increasing capacity at its factory.  The second quarter alone is expected to come in with 40-45 MW shipped.  Oppenheimer is expecting revenues of $713.2 million for 2008 and believes SOLF will increase that to $1.02 billion for 2009.<o :p=""> </o>