Why I’m Hot on JinkoSolar for Long-Term

Let’s talk about JinkoSolar (NYSE:JKS).

Even though, I’ve been wrong on this almost every time in the last year-and-a-half that I’ve touched it. Nevertheless, I think this stock is so undervalued. It was up big on Friday on earnings that missed on top line, but crushed on the bottom line.

I will admit, I didn’t like the margins. They weren’t as strong as I would’ve liked. Shipments were huge, which counters the whole notion that governments would tighten belts on solar. I would like to see margins rebound, and I think they will. Inventory build was pretty strong, and I hope that’s because of demand and not something else. But overall the stock is cheap, it has been for over a year, even though generally they have had some amazing numbers. It’s counterintuitive. “Oil is cheap. No one is spending money on solar,” at least that’s the narrative. But I like it for traders, and I love it long term, if an investor can handle wild gyrations.

My trading target would be $29, longer term, say in about 18 months, I’m thinking $37-$40.

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