"Suntech Power Holdings (NYSE: STP), one of our long-time favorites, is now back on our buy list after being driven down in price by U.S. market volatility and the fallout from a recent earnings report," notes Jim Trippon.

The editor of The China Stock Digest explains, The company is world leader in the manufacture of photovoltaic solar cells and solar electric systems. And, it is developing a new technology to increase solar efficiency." Here is his review.

"The company's solar cells are used to supply power to the electricity grid within China, and it's the number one company in the Chinese solar energy industry. The company's systems also provide dependable power internationally for mobile phone networks and telecommunications relay stations and even street lamps in case of power outages.

"Certainly China is in desperate need of clean renewable sources of energy. Residents of major cities like Beijing and Shanghai are constantly enveloped in a choking cloud of smog. Beijing has said it wants a tenth of its energy to come from environmentally friendly sources by 2010.

"The problem with solar energy has always been the high cost of manufacturing solar cells relative to the amount of power output per cell. Suntech is attacking that problem with rigorous cost control and the competitive advantages that low cost Chinese manufacturers enjoy in the international arena.

"Suntech is well positioned in growth areas of Europe, including France and Greece. It has also agreed to buy the Japanese photovoltaic materials firm MSK Corporation to gain entry to Japan's solar energy market.

"The company also gained a toehold in the U.S. by establishing a subsidiary called Suntech America, based in Delaware. It's expanding its R&D capabilities with a new research facility that's being built near Shanghai.

"The company reports that it's had enormous success in developing a new technology that boosts the efficiency
of its solar cells. Suntech says the commercial adoption of its latest so-called 18% 'semiconductor finger'
conversion-efficiency technology is on schedule and that the performance of this technology has exceeded
the company's expectations.

"Suntech says this exotic new technology has increased the average energy conversion efficiency of its best photovoltaic cells to 18%, well above the industry average of 14% to 15%. The company states that it has also maintained the lowest cost production base relative to its peers with its new solar cell wafer-making technology.

"Suntech reported a very impressive 61% increase in fourth quarter earnings. But shares fell sharply on earnings projections that fell short of analysts' expectations. The company said it expected 2008 revenue of $1.9 billion to $2.1 billion, while analysts on average had forecast $2.2 billion.

"We believe that Suntech has been oversold, given its excellent operations and future prospects. Silicon resources have been in short supply and rising in price as worldwide demand for solar-generated electricity continues to boom. The short term outlook may be disappointing to some, but the future of this industry
leader is very bright.

"Suntech has been a great performer for China Stock Digest subscribers in the past and we expect it to equal its performance before 2009. We look forward to selling shares of Suntech Power for a price of $80 or more before year-end."

Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.