China Sunergy (CSUN) Get Bad Grade

Posted: October 10, 2007 at 11:32 am

Cowen has just come out with a report on China Sunergy (CSUN) titled "This Run Looks Overdone" from  analyst Robert Stone. He rates the stock "neutral" . He comments that CSUN has more than doubled from lows, but he believe investors overreacted to a supply pact and think the stock is ahead of itself.

Cowen believes 2008 estimates for production are about 95% covered by allocations, but a significant portion remains concentrated with Chinese polysilicon startups which are over 90% exposed to spot pricing. That is likely to keep pressure on margins yielding losses through mid-2008.

With some of the China stocks, negative news does not matter. CSUN is up almost 10% at $13.34.

Douglas A. McIntyre

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