One of the hottest stocks in the world over the past 12 months is Hongkong-listed Hanergy Thin Film Power Group (HKG:
While the success of Hanergy Thin Film Group’s stock should get your attention, what you should really pay attention to is not so much this individual stock. You should pay attention to how it makes solar stocks more attractive. As the market learns more about the great fortunes to be made from high-flying solar power stocks, expect more solar companies going public. This can only be a positive thing for the global solar power industry. This means more investment, more research, and hopefully more progress in terms of increasing the efficiency of solar power while reducing its price.
If I don’t sound so excited about Hanergy, it is because of recent allegations made on Barron’s regarding that company’s accounting. Regardless, its phenomenal stock growth should pump the prime regarding the economic feasibility of investing in solar power stocks. Look for other solar power stocks without the baggage of Hanergy. Look for market positioning and growth potential. Also, look for companies with very little debt.