The Oxen Report: Its Time to Get Sunny and Put a Smile on Your Face

This morning is definitely a good morning that is paying off for our perseverance with the solars. Jinko Solar (JKS) reported an EPS of 1.75 vs. consensus at 0.96. The company beat revenue estimates with $215M vs. the expected revenue at $154M. The company saw a 26% YOY revenue growth. The company upped guidance moving into Q4 by over $50M above consensus estimates at $210M – $220M. The earnings were absolutely outstanding and were better than even I had thought they would be. So, the stock of JKS? It is up over 15% in pre-market. We will be selling this position to start the day.

Further, we will be selling our DD position in Yingli Green (YGE). On Friday, we took a DD position in YGE with a second entry at 11.43 to bring down our position average to 11.63. We will be looking to exit this one at 11.96 and above. With the JKS earnings and a market that is looking to rally today on strong Chinese and European markets, Yingli should definitely be able to make the move to 11.96 and above.

The picture above, however, shows the difference in quarterly installations in Germany with Q2 vs. Q3. Every category of solar installations slowed from Q2 to Q3. Companies with very heavy or almost all German exposure may suffer – First Solar ehmm.

Let’s take a look at another solar position that should rally this morning we could still slip into…

Buy Pick of the Day: Suntech Power Holdings (STP)

Analysis: Unfortunately before today, Jinko Solar was not a huge name in the solar game. Some solar analysts most likely did not even cover this stock, but it is starting to pull in some very serious revenues that cannot be ignored. With over $215M made in Q3, this company now has made more money in this quarter than China Sunergy (CSUN), Evergreen Solar (ESLR), and just under Solarfun (SOLF). While the company is not a leader in the market, it should still help to put some spring in the solar stocks as we head into another week. Further, the market is looking positive on Chinese data, which is good for most solar companies since many are based there.