You probably remember the old Elton John song "Don't Let the Sun Go Down on Me." Well that's a song many players in the fast-growing solar power industry keep singing!

Solar power is hot. Solar has become a buzz word in the renewable and alternative energy circles and with good reason, with oil at record levels over $110 a barrel and our planet struggling under the heavy haze of global warming and pollution after more than a century of concentrated industrial pollutants and greenhouse gases.

I believe there is huge potential in the solar industry. However, in the current volatile market environment the sun has gone down suddenly and sharply on the shares of many good solar companies.

Two such interesting companies solar companies in the emerging market arena: LDK Solar (ADR symbol: LDK), and Suntech Power Holdings (ADR symbol: STP).

We have already nibbled on a small position in STP at higher levels and may add a bit more to our position soon. I discussed STP briefly in my February 13 post (below). And we are considering initiating a modest position on LDK near current levels and may add more on either a meaningful pullback met with technical support or a bullish confirmation.

The Stories:

Suntech Power was founded in 2001 and is headquartered in Wuxi, China. I consider Suntech is the region's premier crystalline solar manufacturer, and it is now the globe's third-largest supplier of photovoltaic solar cells and looks to be headed towards the # 1 spot. It has a sustainable competitive advantage, with China's low-cost manufacturing base and favored taxing and treatment by the Chinese government. The company also has a clear technological edge which allows it to produce solar cells with 15% higher efficiency than the industry standard - this should continue to set it apart from competitors.

LDK Solar, also in China, is based in Xinyu City. This company has some advantages over other solar companies, primarily cheap local labor and government approval along with the subtle competitive advantages that normally conveys.

LDK doesn't have the ground-breaking technology STP has but is primarily a low-cost provider story, which should help to keep a floor under its shares and some upward pressure in the near term. Both companies have distinct competitive advantages over their competitors and both should outperform.

Fundamentally, LDK looks very cheap on a number of fronts. Technical indicators on both stocks are turning positive - including the tried and true fast stochastic and RSI as well as some reliable candlestick formations and oversold indicators.

Best wishes,
Jeff Manera

Emerging Markets Insider
Jmanera@EmergingMarketsInsider.net