No Fun at Solarfun (except for the insiders)

Here’s an excellent aritcle on TheStreet.com by Kevin Kelleher comparing two recent Chinese solar IPOs: Trina Solar and Solarfun Holdings.  The only investors having fun at SolarFun were the insiders who managed to allocate themselves a pile of below market cost stock right before the IPO.

Not only does management seem more interested in packing away loot for themselves, but they also haven’t spent too much time looking for ways to deal with a well known problem for solar manufacturers: securing silicon.

 This just re-emphasizes the point that doing your homework when trying to pick stocks can pay large dividends (and help avoid losses.)  Honest and competent management can make the difference between a wildly profitbale company and a real dog.

 Thanks to Phil van Hake for the link.

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