Alternative Energy Stocks

SANDSarah M., Andrew M., Nora M., Doug M.

NYSE: SI$60.81

4-star Morningstar rating◦ Consider Buy: $62.30◦ Consider Sell: $124.60

1.3 Yahoo rating◦ “Strong buys”

Siemens Industry

Net Profit Margin 3.10% 0.30%

ROA 2.8% 0.9%

ROE 8.6% 9.9%

Price/Earnings Ratio 15.66 9.29

Current Ratio 1.10 1.09

Quick Ratio 0.5 1.0

Total Debt/Equity 0.51 0.94

2007 2006 2005

Revenue ($mill) 112,591.8 110,798.0 90,896.1

Gross Profit 5,758.8 29,833.3 26,436.9

Operating Income

7,013.3 4,090.6 3,728.9

Total NI 3,449.5 3,848.3 2,708.4

Diluted EPS 3.82 4.14 2.92

NYSE: ABB$12.97

5-star Morningstar rating◦ “should offer an investor a return that's well

above the company's cost of equity”◦ Consider buy – $14.50 (5-star buy)◦ Consider sell - $58.00 (1-star buy)

1.3 Yahoo Analyst rating

Increased ROA four straight years

ABB Industry

Net Profit Margin 12.90% .60%

ROA 13.4% 0.5%

ROE 44.2% 9.6%

Price/Earnings Ratio 7.92 13.75

Current Ratio 1.60 1.56

Quick Ratio 1.30 1.30

Total Debt/Equity 28% 46%

2007 2006 2005

Revenue ($mil) 29,183 24,412 22,442

Gross Profit 8,968 6,871 5,612

Operating Income 4,023 2,586 1,742

Total NI 3,757 1,390 735

Diluted EPS 1.63 .63 .36

NYSE: STP Worldwide leader in the design and

manufacture of innovative solar energy solutions

Based in Wuxi, China 8,000 global employees Sales offices and installation partners in

North America, Europe, Asia, and Australia

Current Price: $16.35

ROE: 24.76%◦ Industry: 5.8%

ROA: 6.47% 1 Year Sales Growth:

◦ 125.1% 52 Week High: $90.00 52 Week Low: $11.50

Profitability:◦ Net Profit Margin- 13.24%◦ Operating Margin- 14.48%

Balance Sheet:◦ Total Cash- $752,770,000◦ Total Debt- $1,640,000,000

Yahoo Analyst Option◦ Mean Recommendation this week is 2

Good time to buy

Current News:◦ Since Suntech commenced business operations in

May 2002, they have grown rapidly to become one of the world’s top 10 manufacturers of photovoltaic, or PV, cells in 2007, based on production output, according to the March 2008 issue of Photon International.

Ultra-Clean, Efficient, Reliable Power

Efficiency◦ Operate at 47% electrical power efficiency

compared to 35% of fossil fuel powered plants Environmental Impact

◦ Low emission of pollutants Reliability

◦ Operates independently and has 95 % availability compared to 35% of wind and solar technologies

Fuel Flexibility◦ Uses methane from biogas generated by

manufacturing processes

Featured in Fortune Magazine ◦ The “coming of age” for fuel cell business◦ Benefits from financial rescue bill◦ CEO said their making three times as many fuel

cells as last year Will benefit from economies of scale

◦ Possibility of bringing in a billion dollars in revenue within a couple of years

Has not broken a profit ◦ High risk = high reward

36 month revenue growth of 191%◦ $33 million in 2006 to $48 million in 2007

Total debt to equity is only 0.06◦ Industry median is 0.32

Have plenty of cash◦ Net change in cash of $66.8 million in 2007

compared to $3.5 million in 2006

Current Price: $4.98

•NYSE: FSLR

•Based out of Tempe, Arizona

•One of the fastest growing manufacturers of solar modules in the world

•Offices/factories in 7 different countries

1 Year Chart:

Current Price: $152.09

ROE - 26%◦ Industry – 5.9%

ROA – 18.8%

1 year sales growth◦273.4%

52 week high - $317 52 week low – $95

Profitability:◦ Profit Margin (ttm):27.47%

Balance Sheet:◦ Total Cash (mrq):715.15M◦ Total Debt (mrq):167.50M◦ Total Debt/Equity (mrq):0.121

Yahoo Analyst Opinion – 2 (buy)

Current news◦ Cramer Calls First Solar (FSLR) His Top Pick if Obama Wins

Cramer began by pointing out that renewable energy companies will do better under an Obama administration, as he has pledged as much as $150 billion over the next 10 years toward this area.

◦ Trades on Solar Companies Show Optimism in Sector WallStreetJournal.com