Increasing demand for solar energy and solar products proved to be a boon for Trina Solar Ltd. (NYSE: TSL) and LDK Solar Co. Ltd. (NYSE: LDK) as both companies reported Wednesday that their earnings soared in the third quarter. Investors were not impressed, however, pushing shares lower.

Trina Solar, a maker of solar photovoltaic products, said its net income quadrupled to $32.1 million, or $1.17 per American Depository Share, from the same period of the previous year. These results included a foreign currency exchange loss of $4.9 million. Revenue more than tripled to $290.7 million.

Analysts surveyed by Thomson Reuters, on average, had expected a profit of $1.21 per share on revenue of $276.9 million.

However, the company lowered its full-year 2008 revenue estimate to range between $800 and $850 million because the company expects fewer product shipments for the year than previously forecast.

Shares of Trina Solar fell to a 52-week low of $6.81 Wednesday. The share price is 86.8% lower than a year ago.

Last week, JA Solar Holdings Co. Ltd. (NASDAQ: JASO) posted a quarterly loss and lowered its guidance. But as interest in alternative energy continues to grow, analysts polled by Thomson Financial are still looking for good things from solar energy concerns scheduled to report earnings this week.

Strong growth at Trina Solar Ltd. (NYSE: TSL) in the third quarter prompted it to lift its guidance back in October. Analysts expect the Chinese company to post profits that are 76.3% higher than a year ago, or $1.18 per share on revenues of $268.4 million (+225.0%). Though Trina Solar missed estimates in the second quarter, analysts on average recommend buying TSL. Shares are down 81.4% from a year ago and trading near an all-time low.

Earnings of rival LDK Solar Co. Ltd. (NYSE: LDK) are expect to have risen 47.9% to $0.71 per share on revenues of $486.7 million (+206.6%). Also based in China, LDK has not missed estimates in recent quarters; in fact, it blew past expectations in the second quarter. Yet the consensus recommendation is to hold LDK. Like Trina Solar, LDK's shares are trading near an all-time low; the share price has fallen 50.0% in the past year.

Analysts anticipate third-quarter earnings for Canadian Solar Inc. (NASDAQ: CSIQ) to be a whopping 96.3% higher than a year ago, or $0.54 per share on revenues of $248.0 million (+154.5%). The company easily topped estimates in the previous quarter. ReneSola Ltd. (NYSE: SOL) and Suntech Power Holdings Co. Ltd. (NYSE: STP) are also expected to report earnings growth of 29.7% ($0.37 per share) and 23.8% ($0.42 per share), respectively. All three of these stocks reached 52-week lows last week, and all are considered buys.

Rival home improvement chains Home Depot Inc. (NYSE: HD) and Lowe's Companies Inc. (NYSE: LOW) are scheduled to report quarterly results this week. Not surprisingly, given the ongoing housing slump, analysts surveyed by Thomson Financial on average expect both companies to post earnings lower than in the same period a year ago. For Home Depot, that's 61 cents per share, down 20.8%, and for Lowe's, 56 cents per share, down 16.4%. Meanwhile, cabinet maker American Woodmark Corp. (NASDAQ: AMWD), for whom Home Depot and Lowe's are major distributors, is also expected to report lower earnings: 11 cents per share, down 67.6%.

The presidential campaigns have prompted much discussion of energy policy and alternative energy sources. Some solar-energy-related concerns are scheduled to report this week, and expectations seem to be high. Trina Solar Ltd. (NYSE: TSL) is expected to report 81 cents per share earnings, up 67.9%; ReneSola Ltd. (NYSE: SOL) is expected to post earnings of 32 cents per share, up 62.5%; and Suntech Power Holdings Co. (NYSE: STP) is expected to have earnings of 32 cents per share, up 21.9%. Even China Sunergy Co. Ltd. (NASDAQ: CSUN) is expected to have swung to a profit of 3 cents per share, from a per-share loss of 14 cents a year ago.

Today was nothing short of a wild trading day and despite the levels seen at the close it is still a toss up over whether the bulls or bears won today. Merrill Lynch has said that the commodities cycle may have peaked in the first half of this year. It noted that the S&P/GSCI commodity index was up roughly 41% during the first half of 2008, which is the largest gain since the index inception. This may have only been one factor, but oil fell as much as $9.00 per barrel in the biggest one-day dollar drop since 1991. We did even briefly see the VIX hit that magic 30.0 reading. Below are the unofficial closing bell levels:

DJIA 10,961.72 (-93.47)
S&P500 1214.96 (-13.34)
NASDAQ 2215.71 (+2.84)
10YR T-Note 3.844% (-0.036%)
52-WEEK LOWS
TOP ANALYST UPGRADES
TOP ANALYST DOWNGRADES

Genentech, Inc. (NYSE: DNA) rose today despite a weak earnings report and despite it saying it was going to act like an old industrial company with a share buyback plan. Shares were up over 5% at $79.37 in todays final minutes.

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• Bob Evans Farms Inc. (NASDAQ: BOBE) posted stronger-than-expected Q4 earnings.
• Ciena Corp. (NASDAQ: CIEN) beat earnings expectations, but share prices slipped anyway.
• Daktronics Inc. (NASDAQ: DAKT) Q4 results beat expectations and it raised its revenue outlook.
• Diageo (NYSE: DEO) is recession-proof and should deliver solid results, predicts one adviser.
• Donaldson Company Inc. (NYSE: DCI) beat Q3 expectations and raised its full-year guidance.
• Ensco International Inc. (NYSE: ESV) was upgraded because of its earnings growth potential.
• Lehman Brothers Holdings Inc. (NYSE: LEH) earnings prospects don't impress Jim Cramer.
• Netezza Corp. (NYSE: NZ) beat Q1 expectations and offered full-year revenue guidance.
• Potash Corp. (NYSE: POT) earnings are "set to soar" says one analyst, due to rising demand and prices.
• Sherwin-Williams Co. (NYSE: SHW) lowered its Q2 and full-year forecasts, sending shares down.
• Take-Two Interactive Software Inc. (NASDAQ: TTWO) beat Q2 estimates on Grand Theft Auto IV demand.
• Trina Solar Ltd. (NYSE: TSL) beat Q1 estimates but shares fell on the disappointing Q2 outlook.
• Wal-Mart Stores Inc. (NYSE: WMT) was upgraded due to its earnings outlook and increased productivity.

See also: Earnings highlights: Toll Bros., National Semiconductor, Dr Pepper, Guess and others

Also, continued real estate losses are expected to hurt the quarterly reports of banks such as like Wachovia (NYSE: WB), Wells Fargo (NYSE: WFC), and National City (NYSE: NCC). And Steven Mallas wonders why Playboy (NYSE: PLA) shares have tanked since its last earnings report.

Upcoming results to watch for include Krispy Kreme (NYSE: KKD), Pall Corp. (NYSE: PLL), Pep Boys (NYSE: PBY), Korn Ferry (NYSE: KFY), and Casey's General Stores (NASDAQ: CASY).

Visit AOL Money & Finance for more earnings coverage.

Trina Solar (NYSE: TSL) shares are falling this morning after the company reported a first-quarter profit of $12.9 million, or 51 cents per share. Despite beating analysts' estimates, TSL shares are dropping as investors seem to be looking at TSL's forecast for the coming quarter, when they expect operating margins to increase by as much as of 2%. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on TSL.

After hitting a one-year high of $73.06 in July, the stock hit a one-year low of $25.88 in March. This morning, TSL opened at $45.12. So far today the stock has hit a low of $44.67 and a high of $48.00. As of 12:05, TSL is trading at $45.65, down $3.98 (-8.0%). The chart for TSL looks bullish and steady up until today's drop.

For a bearish hedged play on this stock, I would consider a June bear-call credit spread above the $55 range. A bear-call credit spread is an options position that combines the purchase and sale of call options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make a 4.2% return in two weeks as long as TSL is below $55 at June expiration. Trina would have to rise by more than 20% before we would start to lose money. Learn more about this type of trade here.

TSL hasn't been above $55 since December and has shown resistance around $51 recently. This trade could be risky if the cost of oil (and alternative energy) keeps skyrocketing over the next two weeks, but even if that happens, this position could be protected by resistance TSL might find around $51, where it topped out in May.

Brent Archer is an options analyst and writer at Investors Observer.

DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent neither owns nor controls positions in TSL.

How did we get here anyway? Housing and construction companies have been crushed as the bubble burst and now investors have to make a critical decision. Do you stay and hope for a recovery or bag it and move to another position that has the potential to provide better returns?

The problem is simple to explain: Most investors hate taking a loss. In fact, most investors will look to get "even" before they sell and this attitude usually leads to greater losses, anxiety and poor decisions. The truth is that much of this can be avoided with proper risk management techniques. If any of this describes you, then consider developing a plan for risk management and a discipline that will help to protect your hard earned principal. Now, more than ever, investors need a plan. We all need a plan that includes well developed risk management disciplines, which is why I dedicate a full chapter to it in my book, The Disciplined Investor.

Monday, June 2

The week begins with the 10 am release of construction spending and the ISM Index. Construction spending is expected to continue to be weak as is the ISM.

Then we have a few housing-related earnings releases that should be of interest. Watch NCI Building Systems Inc. (NYSE: NCS). This company is engaged in manufacturing and marketing of metal products for the nonresidential construction industry. Terrific! This is a company that is suffering along with the entire construction sector...that is for sure. In fact, they company lowered the outlook for the remainder of the year back in March. It stands to reason that not much is better. The ace in the hole is the recent trend of lowering expectations and then coming out with an earnings beat. Even so, this has too much potential for problems and the sideline is a good vantage point to watch the earnings announcement, which is expected to come in with a PROFIT of 31 cents per share on $365 million of revenue. (Uh...That I would like to see.)

MOST NOTEWORTHY: The medical supplies and devices sector, East West Bancorp, Tempur Pedic and AbitibiBowater were today's noteworthy initiations:

• Credit Suisse initiated the medical supplies and devices sector with a Market Weight rating and started shares of Edwards Lifesciences (NYSE: EW) and Becton, Dickinson and Co (NYSE: BDX) with Outperform ratings and Medtronic (NYSE: MDT) and Boston Scientific (NYSE: BSX) with Neutral ratings.
  
• East West Bancorp (NASDAQ: EWBC) was initiated with a Buy rating and $36 target at B. Riley; the firm's target implies a 23.1% potential total return over the next twelve months including the stock's 1.35% dividend yield.
  
• Tempur Pedic (NYSE: TPX) was started with an Outperform rating at William Blair, as they find the current valuation attractive for long-term investor given the company's strong position in the specialty sleep products.
  
• Deutsche Bank resumed coverage of AbitibiBowater (NYSE: ABH) with a Hold rating and $29 target, citing the strength of the Canadian dollar and difficult newsprint fundamentals.

OTHER INITIATIONS:

• Banc of America initiated shares of JA Solar (NASDAQ: JASO) and Trina Solar (NYSE: TSL) with Buy ratings and targets of $73 and $76, and initiated Horizon Lines (NYSE: HRZ) and Solarfun Power (NASDAQ: SOLF) with Neutral ratings and targets of $34 and $14.

As the hubris of non-democratic nations like Venezuela and Iran builds, feeling more manly as they receive windfall profits from higher oil prices, U.S. brain power once again looks like it will triumph.

While it will take decades to replace our dependence on foreign oil, the powerful results reported by First Solar Inc (NASDAQ: FSLR) and Sunpower Corporation (NASDAQ: SPWR) plus others point to the first stages of finding serious solutions for alternative fossil fuel sources.

First Solar reported first quarter revenue of $66.9 million and net income of $5 million, smashing Street estimates. The stock was up over $5 in yesterday's trading.

Sunpower, which we have been blogging about for a while, was up slightly in yesterday's trading along with Trina Solar Ltd ADS (NYSE: TSL) and JA Solar Holdings Co Ltd ADS (NASDAQ: JASO). After decades of the alternative power stocks floundering, these stocks have products, revenue and earnings.

Brain power will always win out over digging stuff out of the ground.

John McNay, portfolio manager of Essex Investment Management, provided some good investment ideas on the evolving high-tech power business in this weekend's Barron's Magazine (subscription required). A few of these we blogged about in the past, but they're worth noting again.

• Sunpower Corporation (NASDAQ: SPWR), the Cypress Semiconductor Corporation (NYSE: CY) spin off, makes semiconductors for solar cells and solar panels
• MEMC Electronic Materials Inc (NYSE: WFR) makes the polysilicon that is needed to manufacture the solar cells and panels based on semiconductor technology
• Suntech Power Holdings (NYSE: STP), First Solar Inc (NASDAQ: FSLR), Canadian Solar Inc (NASDAQ: CSIQ) and Trina Solar (NYSE: TSL) were other stocks mentioned.

Sunpower and MEMC we have blogged about and know the companies reasonably well. The others you have to do your homework on, as these are new ideas to this Fly.

TJ Rodgers, Cypress Semiconductor's CEO, referred to Sunpower as Intel during the 1970s. That is a big statement. This is an important industry that will get a lot of investors' attention during the next five years. Solar energy utilizing semiconductor technology is an investment theme that is still in its very early stages.

As a public service to the devoted readers of BloggingStocks, I've decided to spread my own holiday cheer. Below is a quiz to test your knowledge of recent big business stories that you may have overlooked. If it were up to me, I would give away a really huge prize for getting the answers right, such as your weight in Berkshire Hathaway (NYSE:BRK/A) stock or shares of Google (Nasdaq:GOOG) at the IPO price. Alas, there is no prize that I can offer you other than the satisfaction of knowing that you are smarter than the average investor. The correct answers are at the bottom.

1) Heelys (NASDAQ: HLYS) -- As of October 31, how many people worked for the Carrollton, Texas-based maker of wheeled sneakers that have delighted Wall Street, and horrified school administrators and mall managers: a) 38; b) 380; c)3800; d) the number is dwarfed by the millions of annoyed parents shelling out $59 to $99 for a toy that their kids will grow out of and grow bored with in the next few months.

2) Triad Hospitals Inc. (NYSE:TRI) -- Triad Hospitals CEO James Shelton has recently told TPG Axon's Danakar Singh that he's found the hedge fund's recent missives that have criticized the management of the hospital chain to be: a) "productive and useful", b) "way off base")c)"beneath contempt" d) Shelton hasn't responded to Singh's letters.

3) AMC Entertainment -- How long has it been in fiscal years since the movie chain operator, which recently announced plans to go public, was profitable? A) 4; B)9; c)2; d) this company is profitable now.

4) Artes Medical (Nasdaq:ARTE) -- On October 26, the maker of injectable cosmetic products, CEO Dr. Stefan Lemperle got; A) a grant for 10,000 restricted shares; b) replaced because it was in the "best interests" of the company; c) a $10 million loan forgiven; d) a new type of collagen that makes him look 20 years younger.

5) Friendly Ice Cream (Amex:FRN) -- The Lion Fund's Sadar Biglari has vowed that if elected to the Friendly Ice Cream board, he and associate Philip Cooley would be; a) "technically and psychologically independent" b: "Eager to learn the restaurant business from a top-flight management team"; c)"interested in hiring co-founder S. Priestly Blake to run the company;" d) "eager to explore a merger with Applebee's (Nasdaq:APPB), which has also has been targeted by activist investors.

6) Trina Solar Ltd (NYSE:TSL) -- The Chinese-based solar power company said in its recent prospectus that auditors found: a) that its books complied with US and Chinese GAAP; b) That its books complied with Chinese GAAP but not US GAAP; c) that its books didn't comply with either US or Chinese GAAP; d) that its accounting "more than met" applicable standards.

7) Lockheed Martin (NYSE:LMT) -- Lockheed Martin will no longer pick up executive's tab for; a) Country Club memberships; b) Local Town Car service; c) Tickets to sporting events; d) All of the above. (via Footnoted)

8) Google, Inc. (NASDAQ: GOOG) -- According to the Washington Post, How did Google co-founder Sergey Brin dress when he went to lobby Congress? a) Jeans, silver mesh sneakers and a black t-shirt; b) a three-piece custom tailored suit; c) A tweed sports coat, dress shirt and Chinos; d) A golf shirt with a Google logo, tan Dockers and cowboy boots.

9) Tribune (NYSE:TRB) -- Which of the following rich guys has NOT been reported to be interested in buying one or more Tribune properties; a) David Geffen; b) Eli Broad; c) Jack Welch; d:) Saudi Prince Alwaleed

10) Facebook -- How has Facebook CEO Mark Zuckerberg driven executives from Yahoo! Inc. (NASDAQ:YHOO) and other potential suitors crazy, according to the Wall Street Journal. a) Not available for scheduled 8 a.m. conference call because he wasn't awake; b) couldn't do a weekend meeting because his girlfriend was in town; c) A&B; d) Neither

Correct answers: 1) a but d also is acceptable. 2: d; 3:b; 4:B; 5:a; 6:c: 7:d; 8:a: 9) d; 10) c

Jonathan Berr is editor of http://www.desperateinvestors.com