Why Suntech Power Is Poised to Pull Back

Brian D. Pacampara, The Motley Fool
Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, solar panel manufacturer Suntech Power has received a distressing two-star ranking.

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

Suntechfacts

Headquarters (founded)

Wuxi, China (2001)

Market Cap

$338.4 million

Industry

Semiconductors

Trailing-12-Month Revenue

$2.7 billion

Management

Founder/Chairman Dr. Zhengrong Shi

CEO/Acting CFO David King

Return on Capital (average, past 3 years)

1.7%

Cash/Debt

$473.7 million / $2.3 billion

Competitors

First Solar

Yingli Green Energy

Trina Solar


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

On CAPS, 5% of the 4,160 members who have rated Suntech believe the stock will underperform the S&P 500 going forward.

Just yesterday, one of those Fools, Tjackson5, succinctly summed up the Suntech bear case for our community: "As it stands presently, the debt [Suntech] has to overcome is simply too large of an obstacle for them to be profitable any time soon. Solar is a saturated market, competitors will have to fail entirely to allow a company like this to prosper."

If you want market-topping returns, you need to protect your portfolio from any undue risk. Luckily, we've found another growth play we are incredibly excited about -- excited enough to dub it "The Only Stock You Need to Profit from the NEW Technology Revolution." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

The article Why Suntech Power Is Poised to Pull Back originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks 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 Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement