The turmoil in the markets makes it too easy to justify selling any stock these days. Yet while panic never helps investors, it's still a good idea to play devil's advocate with investments.
Consider solar component and systems maker SunPower
At The Motley Fool, we like to consider both the good and bad sides of an investment. Here, I'll highlight three of the main bearish arguments on SunPower. Be sure to read the bullish side, and then offer your own comments below -- or rate SunPower in CAPS.
According to a recent report by iSuppli, inventories are spiking in the solar supply chain because of low demand. While companies such as Trina Solar
2. Courting demand
While U.S. and Chinese stimulus dollars are expected to help demand for solar power, some investors don't think it's nearly enough to drive the industry up in the near term. Reacting to an forecast of oversupply and weak demand, one Jefferies analyst recently downgraded a slew of solar stocks including SunPower, Suntech Power
3. Short on cash flow
SunPower tapped the capital markets in May with a dilutive offering to pick up more cash, and like Evergreen Solar
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Fool contributor Dave Mock owns no shares of companies mentioned here. First Solar and Suntech Power are Rule Breakers selections. The Fool's disclosure policy always packs its SPF-50 sunscreen for a day at the beach.