A look at CSUN

Discussion in 'Stocks' started by michaelscott, May 24, 2007.

  1. Greenspan and Cramer have teamed up to openly bash the Chinese stocks. Then there are other factors like the belief of China bubbles which may or may not be true. Then its May. You know all this attitude will lift at one point or the other and probably in 2-3 months. The world isnt going to suddenly stop using solar power and these solar companies will grow their revenue substantially in the next 12 months.

    Nows the time to take a second look at the solar stocks while they get sold off. I looked at CSUN and compared them against a few other known companies.

    This is how I work. I read the 10-Q or Prospectus of the known successful companies, then I read the same of the known dogs and then I read up on the ones who are potential candidates. I get an idea of what the street wants and what they dislike.

    This is one data point:

    Employee headcounts

    TSL
    2006-910

    CSUN
    2004- 17
    2005- 228
    2007- 1349

    SOLF
    2004- 84
    2005- 241
    2006- 502
    2007- ??

    SOLF Revenue-
    2005-21M
    2006-48M
    2.28 times

    CSUN Revenue-
    2005- 13M
    2006- 149M
    11.4 times

    TSL Revenue-
    2005- 11.4M
    2006- 75M
    6.5 times


    Somehow CSUN appears very attractive and growing more aggressively then the King which is Trina. You can see why SOLF is the dog as it hasnt grown as aggressively as its peers.

    I believe in the short term CSUN and its counterparts will be sold-off aggressively and Im not sure how low they will go. I do know that someone bid up Trina 300% in the last few months for a reason. CSUN appears to be a company that has been able to grow its revenue twice that of Trina. The headcounts for CSUN demonstrate a very aggressive growth strategy. Up nearly 6 times in two years.

    I think CSUN will go lower in the short term, but at some point I will be looking to buy.