Solarfun Power Holdings Co. Ltd. (NASDAQ: SOLF) has been on an absolute tear over the last week. The Chinese PV cell manufacturer will release earnings before the open this Wednesday (May 21).
On May 1, this was at $13.07 and on May 12 it was at $14.94. Shareshave risen every day since then and shares now sit up some 70% in justa week. The stock is also one that is becoming harder and harder to short sell as there is a huge short interest in the stock.
This one is also very thinly covered on Wall Street. Estimates are $1.12 EPS and $961.8 million, but we’d caution that there are only 3 estimates and those are very wide apart from each other. Even if this one beats, it might not please everyone.
As of the end of April, this one had 15.28 million shares listed as being in the short interest, down from 16.37 million in mid-April. After a hug move like this and after all the ongoing doubt has been cast in many of the solar stocks, you can probably bet that the short interest is higher. A short seller we listen to has said that Solarfun is getting harder to borrow in any size.
After today’s $25.18 close, it is still well under highs asits 52-week trading range is $8.22 to $40.19.
Jon C. Ogg
May 19, 2008
Jon Ogg produces and edits the "10 Stocks Under $10" newsletter and he does not own securities in the companies he covers.