Quick Win By The Algorithm: JKS Rises On Chinese Solar Investments

Quick Win by the Algorithm:

On June 29th, 2017, the I Know First algorithm issued a bullish 1 month forecast for Jinko Solar (NYSE:JKS), with a signal of 9.29 and a predictability of 0.18. As a result, in accordance with the forecast, the company’s stock realized a 35.82% return over this period, solidifying another quick win by the I Know First algorithm.

quick win

Jinko Solar is a Chinese manufacturer of photovoltaics and a developer of solar projects. The company started out as a wafer manufacturer in 2006 and had its IPO in 2010. Jinko Solar has a vertically integrated business model manufacturing wafers, cells and modules. At the end of 2016, the capacities were 5 GW, 4 GW and 6.5 GW, respectively. It has over 15,000 employees and five production sites. In 2015, the company built a manufacturing plant in Malaysia to circumvent tariffs. The company shipped 4.51 GW modules in 2015. The company’s guidance is 8.5-9 GW modules in 2017. The company is a member of the ‘Silicon Module Super League’ (SMSL), a group of big-six c-Si module suppliers in the solar PV industry today. 

quick win

China keeps investing in solar energy at an extremely rapid pace. It is on track to install record amounts solar projects this year. The company has added 24 gigawatts of capacity in the first half of 2017. Furthermore, Chinese policy makers are pushing to locate electricity production near the point where it’s used. This favors companies specialized in distributed solar power, such as Jinko Solar, while hurting firms offering larger solar plants.

The Chinese government has set its goal on spending $360 billion on clean energy by year 2020. Moreover, this is going to help create an estimate of 13 million new jobs.  Such a shift holds a huge potential and would bring China closer in line with the U.S. In the U.S. installations surged more than 1,000% since 2010, and are only now seeing a slowdown.

Although Chinese investments were the main driver of JKS growth, declarations by President Trump also contributed to push JKS share price up. On the day the President declared he will have solar panels installed on the wall with Mexico, JKS shares went up 6%.

Current I Know First subscribers received this bullish JKS forecast on June 29th, 2017. 

Before making any trading decisions, consult the latest forecast as the algorithm updates predictions daily. You can use the algorithm for intra-day trading. The predictability tends to become stronger with forecasts over longer time-horizons such as the 1-month, 3-month and 1-year forecasts.