David Segelov

SunPower's Powerlight Acquisition: Both Companies Win

Amazing how little analysis has been done on the effect on SPWR's business model.

The cheer-leading is deafening but the reality remains that SPWR has bought into an area way out of their manufacturing, low cost expertise and into a lower margin distribution and installation longer cycle business. How do you integrate the two models?

Doesnt SPWR set up more channel conflict - its PowerLight division is now competing against its customers.

Premium valuation for what?

Solar Stocks Don't Necessary Rebound With Oil: The Short Case on SunPower

Aleo Solar (A German public company) released 3Q figures three weeks early on November 7, and reduced full-year guidance significantly as a result of slower sales, higher input costs and lower selling prices.

Goldman Sachs cut estimates on the revenue line by 20%+.

German demand is soft, input prices from the poly mean that margins are being significant affected.


David Segelov CFA
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The Long Case for Solar Powered SunPower

Aleo Solar (A German public company) released 3Q figures three weeks early on November 7, and reduced
full-year guidance significantly as a result of slower sales, higher input costs and lower selling prices
AS1Gn.DE is the ticker.

German demand is soft, input prices from the poly mean that margins are being significant affected.

The Long Case for Solar Powered SunPower

Good summary of the conference call that only stated the positive.

Your article doesnt talk about the small problem going on in the German market, which is not only the largest market by a multiple but also had been the fastest growing market.

Problems in the German solar market were confirmed in an October 20 pre-announcement by Reinecke + Pohl Sun Energy - a well known integrator. They cited "lower than expected dometic demand for crystalline modules."

Oh yes, SPWR acknowledged the slowdown but they would be untouched due to their superior technology (if they were so superior why did Sharp win the Google account?) and superior customers.

Fact remains that the large solar farm projects were built by financial outfits in 2004 and 2005. Now in 2006 there is no positive IRR for these projects.