How High Will Suntech Go?

Solar energy stocks are rebounding from recent lows. After setting all-time highs in late 2007 and early 2008, the solar stock price bubble burst and many of them dropped more than 60 percent. Since making their lows, the group has shot up, with some stocks up over 50 percent.

And Suntech (STP), a major supplier of photovoltaic solar energy systems, is one of the solar stocks leading the charge. From its March 19, 2008 low of $29.40, STP has risen 58.74 percent as of its $46.67 close on April 7.

Much of the buying is speculative, with investors betting on rosy future earnings. Current prices can hardly be justified by current earnings, even if prices are fall below the all-time highs set during STP's recent price bubble.

Be careful with STP and other solar stocks.

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Posted April 7, 2008.