Hoku Scientific Shines With Large Polysilicon Supply Contracts

Jun.25.07 | About: Hoku Corp (HOKUQ)

Hoku Scientific (HOKU) has been a very speculative stock over the past year as it gained awareness amongst investors due to orders from larger companies. They recently announced a huge contract with SunTech Solar (NYSE:STP), in which Hoku will supply SunTech with ten year's worth of polysilicon, for an estimated $678 million. After Thursday's close, the company announced another contract, with a subsidiary of Solar-Fabrikworth, for approximately $185m.

HOKU seems to be placing a large foot in the door as a supplier of polysilicon products to large solar companies. As we all know, sustainable energy is the wave of the future, so stocks like this could be the next big thing someday. HOKU is expecting to report -.37 eps this year, with a huge expected jump to 1.06 the year following. HOKU has a fairly low forward PE of 9.06x, compared to the industry average of 22x. Let's keep this one on close watch as this money train might not be over.

HOKU

Disclosure: Author has a long position in HOKU