2 Solar Companies Poised For Big Moves

Includes: PWER, SATCQ
by: Jorge Aura

The solar market is ready for speculation. There are many companies that have endured this crisis and predictable aid for the sector means that there are all kinds of approaches to movements and purchases.

Asian manufacturers of polyclinics plates need to be complemented with high quality industry. In the U.S. there are two manufacturers that offer warranties on their products.

SatCon Technology Corporation (SATC), founded in Boston, provides clean energy technology of utility grade power solutions for the renewable energy market, the large-scale primarily commercial and utility-scale solar photovoltaic (PV) markets. It has annual sales of $173.3 millions. Its price/book is 3.01 and offers a discount on current books to 200%. The company is carrying out a restructuring of staff, having announced the dismissal of 140 employees. The company has a large potential market and industry experience.

Growth 2010 2009 2008
Revenues 173,302 52,536 62,522
Gross Profit 43,942 3,202 10,204

*All numbers in thousands.

Power-One, Inc. (NASDAQ:PWER) is a designer and manufacturer of inverters for the renewable energy industry. It makes alternating current / direct current (AC / DC) and direct current / direct current (DC / DC) power supplies, converters, and power management products for the servers, storage, networking, network power systems and industrial markets. STI sells its products to original equipment manufacturers (OEM), distributors, engineering, procurement and construction (EPC) firms and service providers. Its annual sales are $1016.71 millions. Its price/book is 1.35 and offers a discount on current books to 30%.

Growth 2011 2010 2008
Revenues 1,047,139 431,572 537,459
Gross Profit 403,122 96,293 110,577

The attractive discount on these companies will not go unnoticed in the Asian market and the changes will probably occur this year.

Disclosure: I am long SATC.