China has a lot of overvalued stocks; industrials which may be hurt by energy costs; financials with who-knows-what shenanigans hiding off the books. My picks so far:SOHU (internet)
LDK, TSL (solar energy)
CMED (medical technology)
CAEI (architecture)
Aalan:
You mentioned LDK and TSL as your favorite solar stock. Any particular reason for that? As I understand right now there are 2 groups in solar energy group, Cadmium (used by FSLR) and Silicon (used by rest of solar) plus some other technology under developlement like copper-indium-gallium-selenide (CIGS) solar cells.
From the M* analyst reports it looks like it is labor intensive process to make silicon wafers. So companies with manufacturing facilities outside of developed world (e.g. in China) would have cost efficiency advantage.
Other than cost I can't tell difference which china based solar company will be the winner. M* seems to like JA Solar better. Is there any solar based ETF?
