Suntech Power Is Bullish on America

• Email
• Share
• Print

Over this past weekend, Reuters ran an interesting article about Motley Fool Rule Breakers recommendation Suntech Power (NYSE: STP). What caught my eye was not that the company's CEO said the U.S market for solar energy will be "very bullish."

Rather, what caught my attention was that Zhengrong Shi said he expects the U.S. to become Suntech Power's largest market in "two to three years." As a measure of this confidence, Shi indicated that he is considering building a manufacturing facility in the country. This is significant news for investors as U.S. sales currently represent only 15% of Suntech's business.

Shi estimates the U.S. market will grow between 30% and 50% for the next decade. A number of people, including myself, would agree with both his bullish sentiments as well as his growth estimates.

I can see a clear strategy for healthy growth at Suntech for at least the next 10 years. In the short term (2007-2010), I expect that sales in both Europe and the U.S. will fuel the company's growth. In the mid-term (2010-2015), the U.S. will surpass Europe and become the predominant driver of Suntech's growth. Longer-term (2015+), however, the falling price of solar technology in combination with China's insatiable appetite for clean energy will likely propel it to become Suntech's largest market.

Suntech is not alone in the solar industry with a global strategy: BP Solar (NYSE: BP), Kyocera (NYSE: KYO), and SunPower (Nasdaq: SPWR) are also making great strides. Among today's more modest-sized solar companies, though, I see few that offer as compelling a picture of sustained, long-term growth as Suntech Power.

Interested in reading more about Suntech Power? Check out these articles:

• I Love Suntech Power
• Suntech Catches Some Air
• Suntech Power: Danger or Opportunity?

Fancy disruptive technologies? Check out a free 30-day trial to David Gardner's Motley Fool Rule Breakers newsletter.

Fool contributor Jack Uldrich is bullish on Suntech Power, which is why he owns stock in the company. The Fool has a strict disclosure policy.