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Alternative Energy -Is Solar Power a Good Investment?. Wong Lam Wai , David UID:2008085991. Copenhagen Conference 2009.
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Alternative Energy -Is Solar Power a Good Investment? Wong Lam Wai, David UID:2008085991
Copenhagen Conference 2009 ‘…..cutting our emissions in the range of 17 percent by 2020, and by more than 80 percent by 2050 in line with final legislation.’ A quote from President Obama ‘s speech in Copenhagen Conference 2009 Alternative Energy!!
Solar Stocks GCL-POLY ENERGY 03800.HK SOLARGIGA 00757.HK APOLLO SOLAR EN 00566.HK COMTEC SOLAR 00712.HK SINGYES SOLAR 00750.HK LDK Solar Co-ADR (LDK), SunTech (STP), Yingli Green (YGE), Renesola (SOL), Solarfun Power Holding (SOLF)
The Solar Stock The return of 3800.HK if you invest in March is Above 400% The return of HengSeng Index 200%
What Happened? The solar stocks dropped sharply Some fell over 50% from its peak It has to do with the production chain of the solar cell
Poly-Silicon Price US$450 US$60
Winner’s Curse The spot price of poly-silicon falls by over 60% ($US450 => $US60) Cost of producing poly-silicon in China is ~$US50-$70/kg Basically, Most China solar company produce for Zero Profit or even Loss
David’s Pick Rating for the whole industry: Underweight GCL-Poly Energy (3800.HK) and LDK Solar Co-ADR (LDK) : Long-Term Buy
Reason for Long Term Buy of GCL-Poly Energy Policy Driven Factor: Small Poly-silicon producers with low capacity are forced out of business. Sovereign fund China Investment Corp. Bought 20% stake in GCL-Poly Energy Holdings Ltd.
Reason for Long Term Buy of GCL-Poly Energy Market Factor: Relative low Cost : $US36.3/kg . Profit is ensured. Expected Rebound in Poly-silicon price and huge consolidation in the solar business
Value Investing p.16 of snowball. Famous saying from Warren Buffet "In the short term, the market is a voting machine. In the long run, it's a weighting machine"