Why Suntech Power Is Poised to Pull Back

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, solar panel manufacturer Suntech Power has received a distressing two-star ranking.

With that in mind, let's take a closer look at Suntech and see what CAPS investors are saying about the stock right now.

Suntech facts

Headquarters (founded)

Wuxi, China (2001)

Market Cap

$338.4 million

Industry

Semiconductors

Trailing-12-Month Revenue

$2.7 billion

Management

Founder/Chairman Dr. Zhengrong Shi

CEO/Acting CFO David King

Return on Capital (average, past 3 years)

1.7%

Cash/Debt

$473.7 million / $2.3 billion

Competitors

First Solar

Yingli Green Energy 

Trina Solar


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 5% of the 4,160 members who have rated Suntech believe the stock will underperform the S&P 500 going forward.

Just yesterday, one of those Fools, Tjackson5, succinctly summed up the Suntech bear case for our community: "As it stands presently, the debt [Suntech] has to overcome is simply too large of an obstacle for them to be profitable any time soon. Solar is a saturated market, competitors will have to fail entirely to allow a company like this to prosper."

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The article Why Suntech Power Is Poised to Pull Back originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. 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.

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