GT Advanced Technologies Breaks Out Of Downtrend On $47.7M Saudi Order

Oct.31.11 | About: GT Advanced (GTATQ)

On Friday, shares of GT Advanced Technologies (GTAT) broke out of a multi-month downtrend with heavy volume after the company announced that it had landed a $47.7 million order for its polysilicon production equipment from a company in Saudi Arabia. Delivery of the order is expected to begin in the latter of half of next year and be completed by the end of the year.

It should be noted that the order is a first for GT from a company in Saudi Arabia and the equipment is for the only polysilicon production project in the Middle East. It’s representative of the shift that will take place over the next few decades as the Middle East recognizes it can’t solely rely on oil for fuel and fortunes.

“We have a strong record of helping new entrants to develop highly productive and low-cost polysilicon production plants around the world and we are excited to be working with Polysilicon Technology Company on this important project,” said Dave Keck, vice president and general manager of GT’s polysilicon business. “This project is an important step in establishing the renewable energy industry in Saudi Arabia and the region as a whole. We are proud to be associated with the highly qualified team at PTC.”

Technically, it appears shares of GTAT have bottomed, having broken out from a nearly 4 month downtrend. In my opinion, any pull back off last week’s surge offers a fantastic opportunity in a company that is well diversified within the green energy space.

Disclosure: None