The Trouble with Chinese Solar Companies

John Cordes submits:Chinese solar companies are beset with undervaluation and undecipherable volatility in spite of amazing growth in sales, net income and future contract commitments. It even seems irrational to many amateur investors, who can't determine the logic for comparative valuation to stocks like First Solar (FSLR) and SunPower (SPWR). The overwhelming theme of most submissions to Seeking Alpha is, "what's up - why the movement?" Even professional analysts appear confused with conflicting assessments and frequent reversals.The obvious answer is: It is irrational. But it's also predictably irrational. Much like oil futures. Demand decreases, production increases, yet prices increase on rumor, while the same rumor one week later produces no effect. For example, both are cited as being driven by value of the dollar. Did the dollar go up 6% yesterday? That doesn't account for the sell off levels.Complete Story »