Energy Conversion Devices: Stock Up 75% Since Earnings

| About: Energy Conversion (ENER)

Energy Conversion Devices (NASDAQ:ENER) released their 3rd quarter earnings on May 8th, 2008.

Since then, the company's stock is up 75% on better than expected results.

What really got this stock moving the day of earnings were highlights from the company's conference call

Here is a brief summary below.

  • MW's Produced 3rd quarter: 21.6 vs 8.8 a year ago
  • .17 cent gain vs .17 cent loss a year ago
  • Revenue 70 million vs 27.4 million a year ago
  • Unisolar Laminates drove growth....they don't use polysilicon
  • Commerical rooftops 5GW by 2012
  • They are the leader in Building Integrated [BIVP]
  • France, Italy, Germany giving incentives for rooftop BIVPs
  • Pipeline: 400MW's in sales commitments 2009-2011
  • They expect 25MW in 4th quarter
  • Gross Margins 4th quarter 30-31%
  • Doubling nameplate capacity 2008-2009
  • 290-310 million costs to produce 300 MW for fiscal 2010
  • 4Q revenue guidance  73million-78million
  • Fiscal 2008 Full Year Revenue Guidance:  246-251 Million


As you can see, ECD is growing at a fast pace!  This enormous move in stock price reminds me of First Solar's (NASDAQ:FSLR) move early in 2007 when the company reported 4th quarter earnings of .11 vs (.11) in the 4th quarter of 2005.  The stock soared from $34.28 to $57.81 just one month later.

Looking at my Technical Charts, Energy Conversion Devices has mild support around the $57 level as well as the $53.50 area.  Investors looking to take a long position in this stock should be cautious as it is very volatile. 

While oil prices remain above $100, solar stocks will continue to benefit. I will be watching closely when ECD reports 4th quarter earnings in early August for management to prove to me that they mean business.

Disclosure: No Position....waiting for a correction to get back in