An Interview with Edward Guinness on Solar-Powered “10-Baggers”

It’s hard to say how quickly it will develop, but at the right price, a large percentage of the households in the U.S. will have solar.

We’re really excited about the solar space. We think the evaluations are hugely attractive, and solar is the space that has the most potential to grow. It’s the area where we’re most likely to catch some 9- or 10-baggers within the portfolio.

TER: What are some of those companies that you believe could actually increase 9 or 10 times?

EG: I would pay attention to Yingli Green Energy Holding Co. Ltd. (NYSE:YGE). Then there’s Trina Solar Ltd. (NYSE:TSL). Trina and Yingli are, I’d say, top-tier Chinese module manufacturers. They are both getting good brand positioning, as well as good brand awareness in European markets.

I would also look at LDK Solar Co Ltd. (NYSE:LDK) and Renesola Ltd. (NYSE:SOL; AIM:SOLA). These are two companies that have been hugely punished for being highly leveraged. But as things turn around, that leverage becomes a huge plus in terms of the potential returns.

Both of them are low-cost wafer manufacturers, which is part of the manufacturing process for making solar panels. They are cost leaders in that specific space, which is actually starting to experience something of a bottleneck.

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