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