Daqo New Energy: Well Positioned ‘Post Lockdown’ Stock At 7 PE

Usually, we don’t feel enthusiastic about high fixed cost manufacturing businesses in a weak economy because demand goes down that leads to lower pricing while the cost structure stays the same resulting in margins going down and the business starts to bleed cash. At the same time, the stock is not cheap enough because value investors start bidding it higher in anticipation of a comeback. Daqo New Energy Corp. (NYSE: DQ) seems different right now, with a 15% market share of the polysilicon that is used to manufacture solar panels;…

Read More

Crude Oil Has Stabilized, Start Looking At Solar Names Now

Traditionally, solar stocks have shown a high correlation with the price of crude oil, i.e. solar stocks move higher when oil prices are stable to moving higher and vice-versa. Even if the underlying business for solar companies may have different catalysts, it is better to look at these stocks when crude oil is holding up well. Now that crude oil price is back to $40 per barrel range, this is a good time to focus on long-term secular demand story playing in the renewable energy sector in general and solar…

Read More