CSIQ's bullishness has been boosted by improving company fundamentals, higher revenue guidance, capital expansion funds generated through follow-on offerings, and volatility in the price of oil. Going forward, on the back of solar panel sales growth in various global markets, extension of product lines, material cost savings through the company's more vertically-integrated production structure, higher captive generation of solar cells, long-term supply agreements, and a silicon reclamation program should, collectively, generate significant earnings growth.

So, with a predominantly bullish outlook, we maintain our BUY recommendation on CSIQ with a six-month target price of $29.50. Price appreciation to our near-term valuation target represents 94.3% upside potential.

Sinopec Holding Steady

China Petroleum and Chemical Corp. or Sinopec (SNP), with its head office in Beijing, China, is one of the largest petroleum and petrochemical companies in Asia. The company is the 2nd largest crude oil and natural gas producer, and the largest refiner and marketer of refined petroleum products in China. The company is also the largest producer and distributor of petrochemicals in the nation.

Sinopec's first-half 2008 results were weighed down by downstream issues that more than offset upstream volume gains. High feedstock costs due to soaring crude oil prices and the Chinese government's tight price controls on oil products in the domestic market pushed the refining segment into an operating loss.

Given the Chinese government's inflation concerns and need to shield the emerging middle class from high oil prices, the prospect of a liberalized downstream price regime is a long way off. A weak outlook for the chemical business, to which Sinopec has heavy exposure, remains another headwind. Given these issues, we see no near-term catalyst that can aid valuation.

Eastman Chemical Capacity Issues

Eastman Chemical Company (EMN) is engaged in the manufacture and sale of chemicals, plastics and fibers. Based in Kingsport, Tennessee, the company has 13 manufacturing sites in 8 countries, supplying its products throughout the world. It provides key differentiated adhesives and specialty plastics products, is the world?s largest producer of PET polymers for packaging, and is a major supplier of cellulose acetate fibers.

Eastman has a strong fibers business and solid financials. The company is likely to benefit from its recent focus on the industrial gasification business.