2-Star Stocks Poised to Plunge: Trina Solar?

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, solar module manufacturer Trina Solar (NYS: TSL) has received a distressing two-star ranking.

With that in mind, let's take a closer look at Trina's business and see what CAPS investors are saying about the stock right now.

Trinafacts

Headquarters (Founded)

Changzhou, China (1997)

Market Cap

$687.5 million

Industry

Semiconductors

Trailing-12-Month Revenue

$2.3 billion

Management

Founder/Chairman/CEO Jifan Gao
CFO Terry Wang

Return on Equity (Average, Past 3 Years)

16.8%

Cash/Debt

$675.0 million / $1.0 billion

Competitors

LDK Solar
Suntech Power
Yingli Green Energy

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 16% of the 1,275 members who have rated Trina believe the stock will underperform the S&P 500 going forward.

Just last week, one of those Fools, junkmarket, highlighted Trina as an untimely pick:

There may come a day when solar can be practical and viable. However, that day is not now, and will not be for quite a while. Considering the high cost, and the fact it loses serious effeciency in just a few years. Up keep costs make it completely not practical. I hope they keep tying though, some day someone will come up with a break through.

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At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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