Why Suntech Power Is Poised to Pull Back

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, solar panel manufacturer Suntech Power (NASDAQOTH: STPFQ  ) has received a distressing two-star ranking.

With that in mind, let's take a closer look at Suntech and see what CAPS investors are saying about the stock right now.

Suntech facts

Headquarters (founded)

Wuxi, China (2001)

Market Cap

$338.4 million

Industry

Semiconductors

Trailing-12-Month Revenue

$2.7 billion

Management

Founder/Chairman Dr. Zhengrong Shi

CEO/Acting CFO David King

Return on Capital (average, past 3 years)

1.7%

Cash/Debt

$473.7 million / $2.3 billion

Competitors

First Solar

Yingli Green Energy 

Trina Solar

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 5% of the 4,160 members who have rated Suntech believe the stock will underperform the S&P 500 going forward.

Just yesterday, one of those Fools, Tjackson5, succinctly summed up the Suntech bear case for our community: "As it stands presently, the debt [Suntech] has to overcome is simply too large of an obstacle for them to be profitable any time soon. Solar is a saturated market, competitors will have to fail entirely to allow a company like this to prosper."

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  • Report this Comment On January 17, 2013, at 7:37 PM, rocker101 wrote:

    "On CAPS, 5% of the 4,160 members who have rated Suntech believe the stock will underperform the S&P 500 going forward."

    What a ridiculous comment. What do the other 95% think?

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