GT Solar Turns Up the Heat

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

There are worries of oversupply of solar modules and a proliferation of LED manufacturers in China. But who cares when you're the one providing the equipment to make that oversupply happen?

GT Solar (Nasdaq: SOLR  ) is now more than just a supplier to the solar industry now that it is manufacturing advanced sapphire crystallization furnaces. Its newest business is off to a hot start less than a year after the acquisition was announced.

Just yesterday, the company announced $91 million in orders from three customers in Asia for such furnaces. That follows a $218.9 million order from Guizhou Haotian Optoelectronics Technology, which -- based on my keen understanding of brand names -- probably won't become a household name in the U.S.

Proliferation of LEDs
As is the case in solar, the proliferation of manufacturers of LEDs isn't good news for Cree (Nasdaq: CREE  ) or SemiLEDs (Nasdaq: LEDS  ) . More manufacturers in the industry put pressure on prices, which has been a thorn for both recently.

But other equipment makers like Veeco Instruments (Nasdaq: VECO  ) and Aixtron (Nasdaq: AIXG  ) have benefited from the LED manufacturing growth in China.

GT Solar's business can capitalize on increasing diversification through its sapphire segment. Polysilicon and PV dominated the company's $1.23 billion backlog to end 2010, and as orders for sapphire equipment come in, that reliance will diminish.

GT Solar's stock is back near its 52-week high, but I think the stock has much further to run. The stock's P/E ratio is just 10.5 and forward P/E stands at 7.9, even before you consider the fact the company has crushed estimates recently. That's why I have given GT Solar a thumb up on Motley Fool CAPS. What do you think about GT Solar?

Interested in reading more about GT Solar? Click here to add it to My Watchlist, which will find all of our Foolish analysis on this stock.

Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Read/Post Comments (0) | Recommend This Article (5)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1493241, ~/Articles/ArticleHandler.aspx, 10/23/2016 4:26:27 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 day ago Sponsored by:
DOW 18,145.71 -16.64 -0.09%
S&P 500 2,141.16 -0.18 -0.01%
NASD 5,257.40 15.57 0.30%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

12/31/1969 7:00 PM
GTATQ $0.00 Down +0.00 +0.00%
GT Advanced Techno… CAPS Rating: ***
AIXG $6.33 Up +0.12 +1.93%
Aixtron AG CAPS Rating: **
CREE $22.12 Down -0.19 -0.85%
Cree CAPS Rating: ***
LEDS $5.12 Up +0.37 +7.81%
SemiLEDs CAPS Rating: *
VECO $21.25 Down +0.00 +0.00%
Veeco Instruments CAPS Rating: ***