By Timothy Lutts, Chief Investment Strategist and Editor of Cabot Stock of the Month
From Cabot Wealth Advisory 9/27/10 Sign up for free Cabot Wealth Advisory e-newsletter
As to individual stocks, two weeks ago, I told you about JinkoSolar (JKS), a Chinese company that claims to be the “world’s leading vertically-integrated PV manufacturer of high quality mono- and multi-crystalline modules, cells, wafers and ingots.”
I wrote:
“There are many other companies doing well in the same sector, and many of them are attractive, too. But JinkoSolar (JKS) stands out for these reasons.
“1. It’s small, with a market cap of just $530 million.
“2. It came public quite recently, in May of this year, so it’s still fairly unknown, which means most potential owners don’t own it yet,
“3. The company turned profitable in 2007 and today it’s growing like the wind. In the second quarter, revenues grew 310% from the prior year to $133 million while earnings surged from nine cents per share to $1.18 per share. After-tax profit margins were 20.1%.”
“4. The stock is strong! After coming public at 11 in May, it dipped to a low of 8, and then began a rocket-ship ride that took it to a high of 30 last week.”
“Since then, JKS has dipped to its 25-day moving average at 24, and if you’re interested, I think you can nibble on a little here. For continuing coverage of the stock, however, I suggest you try a no-risk subscription to Cabot China & Emerging Markets Report, whose editor, Paul Goodwin, is keeping a close eye on the stock.”
Hopefully, you bought some shares of JKS, which hit 32 last Wednesday, for a quick gain of 30%.
And hopefully, you took a subscription to Cabot China & Emerging Markets Report, which will steer you into many more top-performing Chinese stocks, leveraging both the time-tested Cabot investing rules and the awesome power of China’s economic growth.
If you didn’t sign up then, you still have time. Paul has a new issue out this week. Don't miss it! Click here for more information: Cabot China & Emerging Markets Report
Timothy Lutts
President, Chief Investment Strategist, Editor of Cabot Stock of the Month
Timothy Lutts heads one of America’s most respected independent investment advisory services, publishing eight newsletters to more than 165,000 subscribers around the world. Tim leads a dedicated team of professionals who serve individual investors with high-quality investment advice based on time-tested Cabot systems. Under his leadership, Cabot has been honored numerous times by both Timer Digest and the Hulbert Financial Digest as among the top investment newsletters in the industry. Tim also edits Cabot Stock of the Month.
By Timothy Lutts, Chief Investment Strategist and Editor of Cabot Stock of the Month
From Cabot Wealth Advisory 9/13/10 Sign up for free Cabot Wealth Advisory e-newsletter
Today, I continue to think there’s much more upside potential to this market, and if you agree with me, I suggest you consider a growth stock that has the potential to be as big a winner as Microsoft.
The industry is energy, which is an absolutely enormous global industry. The sector is solar power, which is booming now as costs come down, and demand ratchets up. (Don’t underestimate the power of the market as people strive to develop alternatives to oil.) And the company is JinkoSolar (JKS), a Chinese company that claims to be the “world’s leading vertically-integrated PV manufacturer of high quality mono and multi-crystalline modules, cells, wafers and ingots.”
There are many other companies doing well in the same sector, and many of them are attractive, too. But JinkoSolar (JKS) stands out for these reasons.
1. It’s small, with a market cap of just $530 million.
2. It came public quite recently, in May of this year, so it’s still fairly unknown, which means most potential owners don’t own it yet.
3. The company turned profitable in 2007 and today it’s growing like a weed. In the second quarter, revenues grew 310% from the prior year to $133 million while earnings surged from nine cents per share to $1.18 per share. After-tax profit margins were 20.1%.
4. The stock is strong! After coming public at 11 in May, it dipped to a low of 8, and then began a rocket-ship ride that took it to a high of 30 last week.
Since then, JKS has dipped to its 25-day moving average at 24, and if you’re interested, I think you can nibble on a little here. For continuing coverage of the stock, however, I suggest you try a no-risk subscription to Cabot China & Emerging Markets Report, whose editor, Paul Goodwin, is keeping a close eye on the stock.
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