CSOL China Solar and Clean Energy Solutions Inc (PK)

Dutton Associates updates its coverage of China Solar & Clean Energy Solutions (OTCBB:CSOL) with a Strong Speculative Buy rating and a $2.38 price target. The 27-page report by Dutton senior analyst Stanley Ng is available at www.duttonassociates.com as well as from First Call, Bloomberg, Capital IQ, FactSet and other leading financial portals. We are re-initiating our research coverage on China Solar & Clean Energy Solutions. Following the completed acquisition of Shenzhen PengSangPu (SZPSP) in March 2008, the Company has a more diversified portfolio of solar and renewable energy businesses, which can be classified into three main segments: solar heater/boiler-related products, heat pipe-related products and energy-saving projects. In the rural areas in China with rising disposable incomes, the attractive cost economics of solar hot water heaters, compared to gas and electric hot water heaters, has translated into a strong demand for China Solar�s products. Meanwhile, the heat-pipe and related energy-recovery projects at Tianjin Huaneng, which are suitable for manufacturing processes that require large amounts of heat, such as steel and chemical plants, are gaining momentum due to the high energy recovery efficiency and short payback period. The acquisition of SZPSP has enabled the Company to establish a strong foothold in energy-saving projects in Southern China, where it hopes to capture the growing market for commercial solar hot water heater systems. We forecast the Company�s NI to increase a robust 210% to $4.80 million in 2008 followed by a 69% increase to $8.10 million in 2009. Diluted EPS would show a less impressive increase to $0.30 in 2008 and rise to $0.34 in 2009 due to the significant increase in the number of shares issued in 2008 and the expected conversion of outstanding warrants in 2009. About Dutton Associates Dutton Associates is one of the largest independent investment research firms in the U.S. Its 30 senior analysts are primarily CFAs, and have expertise in many industries. Dutton Associates provides continuing analyst coverage of over 140 enrolled companies, and its research, estimates, and ratings are carried in all the major databases serving institutions and online investors. The cost of enrollment in our one-year continuing research program is US $35,000 prepaid for 4 Research Reports, typically published quarterly, and requisite Research Notes. Dutton Associates received $48,000 from the Company for 6 Research Reports with coverage commencing on 8/29/2005. We do not accept payment of our fees in company stock. Our principals and analysts are prohibited from owning or trading in securities of covered companies. The views expressed in this research report accurately reflect the analyst's personal views about the subject securities or issuer. Neither the analyst's compensation nor the compensation received by us is in any way related to the specific ratings or views contained in this research report or note. Please read full disclosures and analyst background at www.jmdutton.com before investing.