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19 Oct | Purchase – PV Crystalox Solar

So with my Renesola adventures due to come to an end in the coming weeks, the first of my four purchases this week, will come as a no-brainer to those who’ve followed Investor Trader over the journey.

PV Crystalox Solar is a, yep, you guessed it, solar energy company. Though it lacks the Chinese connection it’s still a major player in Asia (especially Japan). We purchased 1,719 shares at 57.21 pence a share.

To quote from the tin:

With 25 years (28 now) in solar technology development, PV Crystalox Solar is a leading manufacturer of multicrystalline silicon ingots and wafers, the key component in solar power systems.

Its customers, the world’s leading solar cell producers, combine these wafers into solar modules to harness the clean, silent and renewable power from the sun.

From a purely chartist point of view I quite like our entry point. I’m hoping the dips in May and October of this year constitute a double bottom.

After a pretty ordinary 2009 which saw PVCS earnings per share drop from 21 pence to a little over 6 pence, the company is looking a lot healthier as production is ramped at their poly-silicon plant in Germany and production costs continue to drop.

On the flip side, prices too, continue to drop. But as prices drop we edge ever closer to “grid parity” and the potential “solar rush” the industry would no doubt enjoy when that day comes.

I dare say a lot of UK Renesola holders who want to keep their investments on this side of the pond will be taking a closer look at PVCS.L in the coming weeks. And despite everything fundamental and what the charts say, my gut just tells me that investing in solar long term can’t be a bad thing!

Thanks again for dropping by and remember to pay Kiva a visit and help a third world entrepreneur get up and running.

Paul
rsvp@investorsoiree.co.uk