Clear Skies Solar, Inc.(fka CSKH)

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Are Solar Stocks Too Good to Be True?

By Travis Hoium
July 8, 2011 | Comments (11)

What if I told you there was an industry you could invest in that was growing more than 50% per year? What if leading companies in that industry had gross margins of 20%, 30%, even 40%? And what if I told you those stocks traded with single-digit P/E ratios? Wouldn't that sound too good to be true?

That's exactly where we are in the solar industry right now. Companies are trading at multiples usually reserved for industries with no prospect for growth or companies slowly going out of business. But solar is neither of those things, and it appears that the industry's stocks are extremely undervalued on the surface.

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Solar is the future
You can debate among yourselves whether solar power is really the future of energy, but this Fool is drinking the Kool-Aid and driving the solar bandwagon. I think we'll look back in 50 years and laugh about the days when we got most of our energy from dirty coal and oil.

I'm seeing costs fall for solar power and rise for other energy sources and wondering how this could not be the future? Yes, there are challenges like energy storage and the intermittent nature of solar and even wind power, but I think these are challenges we can overcome with a little engineering muscle.

To me, this is like getting in on the tech boom in the early '80s. If you pick the right stock and hang on for the ride, we should be headed much higher.

the entire article...

http://www.fool.com/investing/general/2011/07/08/are-solar-stocks-too-good-to-be-true.aspx