Amit Kumar

Solar Stocks Come Back to Earth

Market is concerned that YGE paid too much for CyberPower and may face problems with financing the expansion of poly facilities especially as YGE has not disclosed the Capex requirements.
In the longer run, securing the Silicon supply is positive for YGE, but the falling silicon prices, and YGE's reliance on bank facilities to finance the capex poses a big headwind. Solar companies that rely on the their cash flow for any capex and have good cash reserves have a lower down side risk at this point, I would say.