Jefferies Out Positive on Solar Stocks

Jefferies is positive on the Solar space this AM saying they believe that Suntech (NYSE:STP) is well positioned to rapidly accelerate cell and module production. Suntech recently announced a bolt to 1 GW of capacity by the end of 2008, two years ahead of plan. Over the next two years, the firm sees the company's cost structure benefiting from the introduction of higher efficiency solar cells, a transition to lower cost wafers through longer-term contracts, and declining market prices (particularly in 2009). Moreover, this could allow STP to absorb rapid module price declines while still maintaining margins—a scenario they have built into their forecast and EPS estimates for 2009.

Suntech has approximately $588 million in cash and positive operating cash flow, as well as very low capex costs per watt and a solid history of ramping production well ahead of expectations. Improved polysilicon supply relationships have muted concerns about raw material requirements somewhat.

They believe that investors may narrow the trading-multiple discount STP receives (25x) compared with SunPower Corporation (SPWR, Buy) (39x) on 2009 Street estimates, given Suntech's similar earnings growth pattern and declining risk profile as it relates to silicon as well as recognition of its potential to maintain margins in a declining price environment. STP's new price target is $108 vs $76 earlier.

Notablecalls: Note that Jeffco is also upping their rating on Sunpower (SPWR) to a Buy from Hold with a $170 target (vs $125). They may serve as a ultra short-term catalyst for the group, including STP. Please note that Jeffco has factored a 15% ASP decline for cells and modules in FY2009 and FY2010 into their estimates. Yet, they remain bullish on the space.

Comments

[Rich4REITs]

The key point of Solar sector is in its transition ratio instead of capacity. The more they produce doesn't guarantee more profit. Only high-transition rate company can survive eventually.

[User 113825]

great recommandation

[stockguru]

*
Piper Jaffray
Fraud

Piper Jaffray Securities Fraud InfoCenter
Learn about Piper Jaffray fraud and securities fraud lawsuits!
InfoCenter
December 23, 2007 Protect your retirement, your savings, your financial future. Learn about securities fraud today!

Home
Piper Jaffray Fraud information
Piper Jaffray Fraud attorneys
Bookmark Page
Tell a Friend
Subscribe
Contact Us

About Piper Jaffray Fraud InfoCenter
Piper Jaffray Fraud InfoCenter is an Internet resource that offers you an opportunity to research securities fraud and your legal rights associated with Piper Jaffray fraud. Piper Jaffray Fraud InfoCenter does not offer legal advice or referrals.

Piper Jaffray Fraud Information
Piper Jaffray

What is Piper Jaffray?
Piper Jaffray, now known as U.S. Bancorp Piper Jaffray, is a Minneapolis-based brokerage and investment banking firm that was formed in 1895. The company provides financial information, products, and services to businesses, individuals, and institutions. It operates more than 120 offices in 25 states, employs more than 2,900 investment bankers, sales and trading executives, research analysts, and financial advisors, and is one of the nation’s most powerful firms in its class.

Why is Piper Jaffray accused of fraud?
In one of the largest securities fraud cases in Minnesota’s history, U.S. Bancorp Piper Jaffray is accused of making more than 6,000 fraudulent transactions in the accounts of 38 of its investors between June 1999 and June 2001. The company also allegedly paid other firms to publish research on its underwriting clients but failed to ensure that those payments were disclosed and neglected to sufficiently supervise its divisions.

Specifically, Piper Jaffray is accused of:

· Issuing research reports that violated NASD and NYSE rules to Esperion Therapeutics, Inc. and Triton Network Systems
· Failing to disclose that it received more than $18 million in payment for research coverage performed for various companies
· Failing to disclose that it paid portions of underwriting proceedings to other firms for research it performed
· Neglecting to effectively monitor its research and investment banking divisions to ensure that both complied with federal securities laws and NASD and NYSE rules.

Who were the key players in the fraud?
Although the entire company is under scrutiny, former U.S. Bancorp Jaffray stockbroker Thomas O’Neill has been charged with administrative fraud and is facing at least 35 civil lawsuits. O’Neill has a history, officials say, of volatile trading and is accused of making thousands of unethical, unwanted, and illegal trades. According to Piper Jaffray representatives, O’Neill was terminated in March 2001 and has been suspended from trading. In addition, chairman Tad Piper, president Andrew Duff, former head of retail Ross Rogers, and at least 10 other executives are being investigated on possible fraud charges.

What is the status?
On April 28, 2003, the Securities and Exchange Commission announced a settlement with U.S. Bancorp Piper Jaffray. Piper Jaffray agreed to pay $12.5 million in penalties and fines and $12.5 million in disgorgement. Exactly one-half of the total payment will be and placed into a fund that will be divided among customers who were defrauded by the firm. The remaining $12.5 will be used to resolve all remaining state regulators’ proceedings. In addition, Piper Jaffray accepted a federal court order prohibiting the firm from disobeying NYSE and NASD rules and all federal securities laws; the order also calls for the restructuring of the company’s equity research and banking divisions to ensure that the departments will not influence one another. Finally, the settlement stipulates that Piper Jaffray must foot the $7.5 million bill for firm clients’ independent research over the course of five years.



Find a Lawyer
Related Sites
Piper Jaffray Fraud Information
Securities Fraud Info
Criminal Law Info
Legal Rights Info

Piper Jaffray Fraud News
Securities Fraud News
Shareholder Fraud News
Investment Fraud News
Merrill Lynch Fraud News
Smith Barney Fraud News
Morgan Stanley Fraud News
UBS Warburg Fraud News
Credit Suisse Fraud News
Bear Stearns Fraud News
JP Morgan Fraud News
Lehman Brothers Fraud News
Deutsche Bank Fraud News
Charles Schwab Fraud News
Wachovia Securities Fraud News
Knight Trading Fraud News
Alliance Capital Fraud News
Goldman Sachs Fraud News
Enron Fraud News
Tyco Fraud News
WorldCom Fraud News
Adelphia Fraud News
Criminal Law News
Legal Rights News


RESOURCES
Recommended Sites
Law Schools
National Legal Associations
National Bar Associations
Statewide Legal Associations
Other Resources

Piper Jaffray Fraud InfoCenter
Terms of Use | Webmaster | Developed by Einstein Law, Inc. | Advertise

pjfraudinfocenter.com/...