Who Will Win in Chinese Solar?
The solar industry has been on a tear in 2013 and a few Chinese companies have led the way. JinkoSolar reported a surprise profit in the second quarter while Canadian Solar is leveraging project in Canada and a presence in Japan to increase margins and come close to breaking even.
But there are also minefields for investors to avoid. Suntech Power and LDK Solar have both failed to make debt payments this year and are in the midst of a restructuring that's a mystery to U.S. investors right now. Terrible balance sheets have been dragging down both companies and there appears to be little upside for investors right now. Yingli Green Energy is also sitting with nearly $3 billion in debt and unless conditions improve quickly it may suffer the same fate as Suntech and LDK.
Joel South sat down with solar analyst Travis Hoium to see who is well positioned to capitalize on Chinese solar and who isn't worth the risk.
Solar is part of an industry transformation
The electricity generation industry used to be dominated by coal and nuclear power, but today solar and natural gas are the two main growth avenues. To help investors capitalize on these trends, the Motley Fool is offering a comprehensive look at three energy companies set to soar during this transformation in the energy industry. To find out which three companies are spreading their wings, check out the special free report, "3 Stocks for the American Energy Bonanza." Don't miss out on this timely opportunity; click here to access your report -- it's absolutely free.
The article Who Will Win in Chinese Solar? originally appeared on Fool.com.Joel South has no position in any stocks mentioned. Fool contributor Travis Hoium 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.