Sunny Days for Suntech Power

Business at Suntech Power (STP), China's most established photovoltaic cell and module manufacturer, is booming. The company just released its fourth quarter and 2006 year end earnings and investors have a lot to be pleased with. For starters, the company's quarterly results excluding items were 4 cents per share better than Wall Street's expectations coming in at $0.23. For the year, net income rose sharply to $106 million, or 68 cents per share, versus $28.2 million, or 26 cents per share, in 2005. Furthermore, the company upped production guidance for 2007. The only negative for the company was quarterly revenues slightly missed expectations. For investors in the company, this last bit of bad news should not be too discouraging. Overall, the company is firing on all cylinders and should continue to reward patient shareholders as China's ravenous demand for energy continues to grow. In short, this company is a buy for long term investors who can afford to buy and sit on an investment for many years. For purposes of disclosure, I do not own shares in this company.