Suntech Power (STP) is announcing preliminary results this morning that aren’t bad.  The company expects shipments will have increased 15% over last quarter with revenues exceeding $800 million.  Margins are expected to be at the higher end of the previously announced range of 11 – 13%.  However, the stock is off a few percent this morning on news that the company will incur a larger than expected Forex hit.  Looking ahead, the company is optimistic that the current challenges in the solar market will lead to a leaner and meaner Suntech Power.

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Dr. Shi commented, "With excess supply and a volatile macroeconomic environment, we recognize that the coming quarters will be challenging; however, with these actions we will become a leaner, more competitive organization. By proactively implementing these initiatives, we are confident Suntech will be able to maintain its financial and operational stability, and emerge in an even stronger market position."

"Despite these short term challenges, we are very optimistic about the future of solar. Solar energy is already competitive with natural gas in many markets, and the cost will continue to decline year-on-year. As long as global markets continue to promote efficiency through free market competition, we have no doubt that solar will become an important pillar within the global energy mix. This is a crucial element of international efforts to reduce carbon emissions and combat climate change."

Suntech power will report official results before the bell Nov 22nd. 

Technically, I like shares of Suntech at these levels.  The key for me was the high volume spike Oct 27th.  When the stock retraced most of that move I initiated a position, but need to see this little wedge formation hold with support around the $2.50 area.  If that can’t hold, a retest of the lows becomes more likely.