Cashing in on Booming Times: Alternative Energy Companies Offering More Stock

Who can blame the Solar and Wind Energy companies. Their stock prices are at an all-time high’s and everyone (Wall Street, Politicians (at least they say they do), and the average Joe) loves them. Every time you think they are too expensive they keep proving you wrong and keep making new highs.

Of course they are going to take advantage of this, and offer more stock. The news release date is in parenthesis.

Solar Energy Stocks

SunPower Corp. (SPWR): Solar panel maker SunPower Corp. plans a public offering of about 2.5 million class A shares, and $175 million in senior debt. (July 19th, 2007)

Trina Solar (TSL): It priced a follow-on public offering of about 5.4 million American depositary shares at $45 each. The stock fell to low 40’s the day news was announced, but is now trading in the low 60’s. I think about buying Trina Solar every time it falls, but never pull the trigger, and then it takes off. (June 1st, 2007)

First Solar (FSLR): It filed to raise about $1 billion in a stock offering. The company plans to offer 9.65 million shares in the stock offering. As William Trent pointed out the price fell far less then expected. I couldn’t agree with him more. Of course, I am the fool who got burned shorting First Solar.

For the last few weeks or so, I have made up some of my losses by buying Call Options but am still in red overall. Right now I only own Put Options. This could still shoot up any day, so I might buy Call options in next few days to hedge my short position. It's been an incredible run so far for First Solar but sooner or later is had to end. Doesn’t it? On a side note, look at how much money First Solar’s CEO has made so far. (July 20th, 2007)

Evergreen Solar (ESLR): Evergreen Solar is offering 15 million shares, priced at $8.25. The company expects proceeds of about $117.4 million, which will be used on manufacturing expansion, raw materials, and working capital. (May 24th)

Wind Energy Stocks

American Semiconductor (AMSC): It is offering 4.7 million shares, priced at $21.25 a share. I owned options on AMSC a few months ago, and sold them for over a 100% gain. I could have made much more if I would have held on. (July 20th, 2007)

I can’t blame these companies for trying to take advantage of these booming times. The effect on their stock price seems negligible after the news, and in most cases are trading higher now. So who’s next in line for a Stock offering?

Disclosure: I own Put Options of FSLR and might buy some calls in the next few days. I might also buy Put or Calls on any of these companies in the coming days.

Comments

[TLD2]

Earnings are Tuesday For FSLR. I expect a huge "covering" by the shorts causing panic buying and an extreme price increase. You got burnt before...be wise BUY BUY BUY now before it shoots up Tuesday, Wednesday and probably Thursday. Estimates are around 250+ per share by DEC 31, I believe it will reach that level. That's just my opinion, take it for what it's worth.