This recent solar IPO has the potential to be hot. They have sales contracts extending into the next two years, and recently added a new deal. With this guaranteed revenue, this profitable company has a solid base to add to in the future. Also, as of late, solar energy is a very hot sector, with some phenomenal picks, so it's got some momentum behind it. Buy during the dips, and this stock will deliver.
Unfortunately, this does carry some risk. This is a small cap company, based in China, and consequently is inherently risky. Also, since the sector is so hot, it is possible that it will become flooded with new IPOs to the point that it becomes dangerous to be long anything in the sector.
Bottom line: I do feel that the potential gains outweigh the risks, as this is a profitable company with plenty of upside, and contract based income for the next two years. Plus, as an alternative energy company, it has plenty of momentum going for it with current affairs, and news coverage of the sector could cause additional favorable momentum. Definitely keep an eye on this guy and trade it carefully.
$6.39 (04/08/07)
