Comments on: Jim Cramer downgrades Solar – Solar stocks feel the Cramer effect http://energy.financialnirvana.com/2007/05/18/jim-cramer-downgrades-solar-solar-stocks-feel-the-cramer-effect/ research . analysis . forecasting Fri, 25 Apr 2008 13:50:47 -0600 http://wordpress.org/?v=2.8.4 hourly 1 By: Himanshu Pandya http://energy.financialnirvana.com/2007/05/18/jim-cramer-downgrades-solar-solar-stocks-feel-the-cramer-effect/comment-page-1/#comment-4414 Himanshu Pandya Wed, 23 May 2007 02:48:42 +0000 http://energy.financialnirvana.com/2007/05/18/jim-cramer-downgrades-solar-solar-stocks-feel-the-cramer-effect/#comment-4414 Actually, I don't feel very good about my WFR short. I actually own put options on it. I am actually down right now but I am planning to buy some calls in the very near future and leave those puts as a hedge. However, I would only buy WFR in the mid to high 50's. (It's there right now). The problem is that its not a sexy stock like solar cell manufacturers and doesn't get the respect and people don't know how to value it since there are no peers (poly suppliers) in the US market. I am just worried about Chinese expanding the poly production at a large scale to feed their growing solar industry. It's just a matter of when not if with the Chinese. Actually, I don’t feel very good about my WFR short. I actually own put options on it. I am actually down right now but I am planning to buy some calls in the very near future and leave those puts as a hedge. However, I would only buy WFR in the mid to high 50’s. (It’s there right now).

The problem is that its not a sexy stock like solar cell manufacturers and doesn’t get the respect and people don’t know how to value it since there are no peers (poly suppliers) in the US market.

I am just worried about Chinese expanding the poly production at a large scale to feed their growing solar industry. It’s just a matter of when not if with the Chinese.

]]> By: hkramer48 http://energy.financialnirvana.com/2007/05/18/jim-cramer-downgrades-solar-solar-stocks-feel-the-cramer-effect/comment-page-1/#comment-4413 hkramer48 Wed, 23 May 2007 02:39:50 +0000 http://energy.financialnirvana.com/2007/05/18/jim-cramer-downgrades-solar-solar-stocks-feel-the-cramer-effect/#comment-4413 I have to disagree with you on MEMC Electronics Materials (WFR). The fundamentals are very strong. All measures of value listed in Yahoo Finance show that this stock is way undervalued probably for the next year. I am well aware of what happens when everyone else jumps into a good thing - I am referring to the price history of Sandisk here. Nevertheless, they have $3.20 earnings virtually locked up for this year and they should make the $3.90 forecast for next year. I have read your concerns about future silicon oversupply and am wary myself. My plan is to stay long on WFR until the first hint of silicon oversupply and then shift my portfolio weighting to solar producers who will benefit from falling silicon prices. The benefit to the solar producers will snowball and the solar boom will really take off at that time. I have to disagree with you on MEMC Electronics Materials (WFR). The fundamentals are very strong. All measures of value listed in Yahoo Finance show that this stock is way undervalued probably for the next year. I am well aware of what happens when everyone else jumps into a good thing – I am referring to the price history of Sandisk here. Nevertheless, they have $3.20 earnings virtually locked up for this year and they should make the $3.90 forecast for next year. I have read your concerns about future silicon oversupply and am wary myself. My plan is to stay long on WFR until the first hint of silicon oversupply and then shift my portfolio weighting to solar producers who will benefit from falling silicon prices. The benefit to the solar producers will snowball and the solar boom will really take off at that time.

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