investing strategy - stp

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Investing Strategy – 09/16/2009 Suntech Power Holdings Co., Ltd. (Suntech) is a solar energy company that designs, develops, manufactures and markets a variety of photovoltaic (PV) cells and modules. It also provides PV system integration services in China. The Company's products are used in a variety of residential, commercial, industrial and public utility applications in various markets. Suntech sells its products in various key solar energy markets worldwide, including Spain, Germany, the United States, China, South Korea, Italy, the Middle East, Australia and Japan. As of December 31, 2008, the average conversion efficiency rates of the Company's monocrystalline and multicrystalline silicon PV cells were 17.2% and 15.2%, respectively. During the year ended December 31, 2008, the Company commenced the production of PV cells utilizing the Pluto technology, a PV technology that allows conversion efficiency rates in the range of 18.0% to 19.0% on PV cells manufactured with monocrystalline silicon wafers.

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Page 1: Investing Strategy - STP

Investing Strategy – 09/16/2009

Suntech Power Holdings Co., Ltd. (Suntech) is a solar energy company that designs, develops, manufactures and markets a variety of photovoltaic (PV) cells and modules. It also provides PV system integration services in China. The Company's products are used in a variety of residential, commercial, industrial and public utility applications in various markets. Suntech sells its products in various key solar energy markets worldwide, including Spain, Germany, the United States, China, South Korea, Italy, the Middle East, Australia and Japan. As of December 31, 2008, the average conversion efficiency rates of the Company's monocrystalline and multicrystalline silicon PV cells were 17.2% and 15.2%, respectively. During the year ended December 31, 2008, the Company commenced the production of PV cells utilizing the Pluto technology, a PV technology that allows conversion efficiency rates in the range of 18.0% to 19.0% on PV cells manufactured with monocrystalline silicon wafers.

Page 2: Investing Strategy - STP

Investing Strategy – 09/16/2009

Page 3: Investing Strategy - STP

Investing Strategy – 09/16/2009

• The largest manufacturer of photovoltaic (PV) cells and modules in the world. The economic scale and relative inexpensive labor drive unit price to be competitive; Contribution Margin can be higher than average; EPS will satisfy market’s expectation.

• RMB (Chinese Currency) exchange rate against major currencies will be stable for a long period of time if not drops, this will help Chinese maintain their capability of exporting.

• China itself may provide a huge market on solar power given its increasing demand and lack of traditional power resources.

Page 4: Investing Strategy - STP

Investing Strategy – 09/16/2009

Suntech Closing Price Trend

$0.0

$10.0

$20.0

$30.0

$40.0

$50.0

$60.0

$70.0

$80.0

Closing Price $17.2 $20.5 $25.0 $30.0 $40.0 $40.0 $50.0 $50.0 $60.0 $60.0 $60.0 $75.0

9/16/2009 9/30/2009 10/30/2009 11/30/2009 12/31/2009 1/29/2010 2/26/2010 3/31/2010 4/30/2010 5/31/2010 6/30/2010 7/30/2010

Page 5: Investing Strategy - STP

Investing Strategy – 09/16/2009

According to my projection on it closing price trend, the recommendation of trading/investing strategy is to buy at current price level of 17, hold until next summer, and unload at the price level of 70. You will at least triple your initial input. Believe or not, my gut feeling tells me Warren Buffett may be building his holding on this stock just like he did on CEO a couple of years ago!