Solar module manufacturers have been crushed over the past two years but the systems business has been a savior for U.S.-based First Solar and SunPower. Now, Chinese firms are entering the fray, adding systems capabilities to create downstream demand. Trina Solar is interested in expanding in the market, and JinkoSolar is making moves that could make it a big player in systems.
The questions is whether or not this makes them a buy or not? There's still a lot of risk left in Chinese solar stocks so it's not for the faint of heart.
Fool contributor Travis Hoium manages an account that owns shares of SunPower. Travis Hoium personally owns shares of SunPower and has the following options: Long Jan 2015 $7 Calls on SunPower and Long Jan 2015 $5 Calls on SunPower. The Motley Fool has no position in any of the stocks mentioned. 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.