Investing in Clean Energy Leaders


(B) The best companies to invest in Clean Energy are in the US and in China. But because of regulations and incentives, Germany has presently the largest installations of solar panels in the world. China is making clean energy the highest priority than the US and is rapidly establishing itself as the leader in producing both solar and wind energy. Of the 10 largest solar-panel manufacturers, half are based in China. And, Chinese solar panels accounted for about half of the worldwide total shipments in 2009. Most Chinese solar companies are traded in the NYSE.

So if you are interested to invest in clean energy, the following are a few leaders to watch: First Solar, Yingli Green Energy, Trina Solar, Cree, American Superconductor and EnerNoc.

First Solar, Inc (FSLR) manufactures and sells since 1999 photovoltaic (PV) solar modules using a thin film semiconductor process based on Cadmium Telluride (CdTe) to convert sunlight into electricity. It is the largest manufacturer of thin-film cells in the world and the world’s first largest manufacturer of photovoltaic (PV) cells. First Solar expects to bring its total production capacity to more than 1.4 GW by the end of 2010 and plans to build a solar power plant in China in 2011.
 Q2 2010 Revenues: $588 M
 Q2 2010 Profits: $159 M
 Market Cap: 11.03 B
 P/E: 17.72

Yingli Green Energy (YGE), headquarters in Baoding, China and founded in 1998, produces and commercializes worldwide photovoltaic (PV) solar modules based, on a different technology than First Solar, which is monocrystalline solar cells. Yingli is the largest Chinese solar manufacturer with a production capacity of 600 MW in 2009. It was the first Chinese company to sponsor the 2010 World Cup in South Africa. Yingli completed its IPO on the NYSE in 2007.
 Q2 2010 Revenues: $398 M
 Q2 2010 Profits: $133 M
 Market Cap: $1.68 B
 P/E: 28

Trina Solar (TSL), headquarters in Changzhou, China and founded in 1997, manufactures and sells worldwide photovoltaic (PV) solar modules based both on monocrystalline and multicrystalline solar cells with power outputs ranging from 165W to 230W. Trinar Solar completed its IPO on the NYSE in 2006.
 Q2 2010 Revenues: $370 M
 Q2 2010 Profits: $83.6 M
 Market Cap: 1.78 B
 P/E: 12

Cree (Cree), founded in 1987, develops and manufactures light emitting diode (LED), component and chip products for lighting. Its LED products are used in various applications, including video screens, gaming displays, function indicator lights, and automotive backlighting.
 Q2 2010 Revenues: $265 M
 Q2 2010 Profits: $53 M
 Market Cap: 5.78 B
 P/E: 36

American Superconductor (AMSC), founded in 1987,  produces and commercializes worldwide electrical power systems for the design of wind turbines and superconducting wires that extends the reach of the emerging power grid infrastructure.
 Q2 2010 Revenues: $97 M
 Q2 2010 Profits: $9 M
 Market Cap: 1.27 B
 P/E: 54

EnerNoc (ENOC), founded in 2001, provides energy management solutions, mostly in North America, focusing on demand response applications, for optimizing energy supply and demand, in particular for smart grid power operators.
 Q2 2010 Revenues: $66 M
 Q2 2010 Profits: $1 M
 Market Cap: $851 M
 P/E: N/A

Other clean energy companies to watch include in the US:
 SunPower, SPWR (Solar manufacturer)
 Itron, ITRI (Meters for the smart grid)
 Comverge, COMV (Demand Response systems for the smart grid)

And, in China:
 JA Solar Holdings, JASO (Solar manufacturer)
 Suntech Power, STP (Solar manufacturer)
 Solarfun Power, SOLF (Solar manufacturer)

Note: The picture above is “Women, Birds, and a Star” from Joan Miro.

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