Trend Thoughts

In my Random Thoughts About Trends post from a few weeks ago, I wrote about my belief that Alternative Energy will become a long term trend. I did say that I didn’t know enough about this industry to pick a future winner. It’s rather confusing when you have all sorts of forms of alternative energy such as: solar, wind, bio-fuel, and who knows what else. I then stumbled across an old episode of Wallstrip that profiled Solar Energy. I thought to myself, this might be a good starting place to get some information about solar energy related companies trading at all time highs. Wallstrip highlighted First Solar (FSLR), Ascent Solar Technologies (ASTI), and Trina Solar (TSL). I did a quick check of these companies and found that First Solar has a PE ratio of 300+ and trades at $68, Ascent Solar has no earnings and trades at $7, and Trina Solar has a PE of 50+ and trades at $46. FSLR and TSL, from a valuation stance, are way too rich for me and they probably have a lot of a “hate oil” premium added to their share prices. ASTI has no earnings so maybe $7 is about right, then again maybe it should be lower! So what to do? Well I’ll do more DD (due diligence) on these three and work my way into this market place. Perhaps there’s a better and unloved company out there, waiting for its day in the sun!