H.J. Huneycutt

Evergreen Solar: Why This Overlooked Company Is a Good Investment

Vitamin_j,

When I say that EverQ is a partner to ESLR in a figurative sense and not a legal sense, I'm simply delineating between legal terminology and the everyday use of the word. ESLR does not operate in a partnership or a limited partnership with EverQ (to my knowledge). It is a corporation and has an ownership interest in another corporation (EverQ). ESLR receives royalty payments and owns a stake of EverQ's equity. This is neither here nor there really --- merely an example of me trying to be precise with legal terminology so as not to confuse anyone.

I didn't specifically mention the Lehman deal in the article (though, I probably should've); however, I factored it into most of my own future projections. In fact, for most of my more long-term calculations, I might have gone overboard on the share dilution based on the assumption that ESLR would eventually sell off all authorized shares. To be sure, recovering the shares from Barclays would make each share worth more, but that's not the sole reason for ESLR's price drop. It's certainly something to keep an eye on, though.

As far as silicon prices goes, lower prices benefit ESLR. It's true that they benefit other polysilicon based solar manufacturers moreso than they do ESLR since others use even more silicon; however, cheaper silicon prices make ESLR more competitive with lower-cost solar technologies, as well as other energy sources.