Worldwide Energy and Manufacturing USA, Inc. [[WEMU.OB]] shares have rallied more than 60 percent since the beginning of April after the company announced strong full-year 2008 earnings. Despite the company’s strong growth rates, the stock trades with an earnings multiple of just 9 times earnings. So, how does the future look for Worldwide Energy and is now the time to get in this stock?

Last year, Worldwide Energy reported net income of $1,655,949 on revenues of $45.9 million, compared to net income of $711,284 on revenues of $12.1 million a year earlier. The company’s cash position increased from $2.1 million to $5 million, while current liabilities stand at just $6.6 million with long-term debt of $997,099 from a long-term loan and a shareholder loan.

The increase in revenues and net income can be largely attributed to Worldwide Energy’s expansion into the solar industry through its “AmeriSolar” brand. The division generated $30,999,962 in sales in 2008, with the majority of its customers in Europe and South Korea. However, the company plans to expand into the United States and Latin America where there is an abundance of solar rebate programs.

As part of this expansion, the company leased a 129,167 square foot facility in Ningbo China with a capacity of 80MW of energy, or approximately $224 million in revenues at full capacity based on current prices. The company is hoping that this expansion will increase its gross and net margins as it continues its conversion from an outsourcing company to a direct contract manufacturer with its own factories.

The future looks very bright for Worldwide Energy. On its conference call, the company said it was very pleased with its progress in 2008 and looks forward to a robust 2009. Despite the economic downturn, the company is projecting triple digit revenue and earnings growth for 2009. Specifically, they expect to see revenues of around $100 million and earnings of between $4.5 and $5 million for the year.

Investors can also look forward to Worldwide Energy’s entry into the U.S. market with its solar products. Given the substantial number of solar rebates and subsidies, this market represents substantial opportunity for growth. Meanwhile, the company has also already applied for listing on the Nasdaq and believes that it will qualify in the “very near future.”

In the end, Worldwide Energy’s entry into the solar business turned a new page in their book, and investors couldn’t be happier. The company’s projected 2009 results make its stock very cheap at today’s levels, while a listing on the Nasdaq should help ensure that it comes to value quickly. Prudent investors may want to wait until these events materialize, but speculators may find this stock to their liking.

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