Energy Conversion Devices: Stock Up 75% Since Earnings

Energy Conversion Devices (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 (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

Comments

[Tommy Traddles:]

Sorry to see you need to get "back" in. I have owned Energy Conversion Devices (ENER) since 1987, and have had friends and relatives go in and then out of the stock over the years, some making and some losing in the process. Now most of them, like you, are OUT, just when it's time to be IN. I've stayed in, and of course suffered with the stock's ups and DOWNS.

2008 Jun 03 06:53 PM

[Kippie:]

Tommy T: I've been "in" almost as long as you, and of course very happy I stayed. I am interested in their hydrogen fuel cell tech. It appears that: 1- They can make hydrogen using their solar tech. 2- store hydrogen in low pressure containers. 3-make fuel cells to use the hydrogen they produce. 4-power vehicles and much more. 5- perhaps (?) use existing service stations in many areas by installing a roof top solar hydrogen generator and low pressure storage tank for use by fuel cell powered vehicles at the same place ordinary gas powered vehicles fill up.
I keep thinking this is going to happen....... what's your take?

2008 Jun 05 06:49 PM

[Trader Tim:]

Well, today ENER is $66.50 down from the high of $83.33.....this was the dip I was refering to. I sold at $62 prior to writing this article and now I am scaling back in below $67. I don't mind paying a little over where I sold it at...but hopefully it dips even further. We all know just weeks ago some big money bought the offering at $72. Long once again!

2008 Jul 01 01:01 PM