Jack Yetiv

Further Thoughts on Trina Solar and the Solar Space

Larson, I believe they will make over $5 in 2009, but prefer not to do a detailed calc until after next quarter's announcement. I also like to be conservative. Keep in mind that their income tax rate of 4.92% in 2008 will go to about 14% in 2009.

Finally, I did not say I believed their operating margins will expand in 2009 from the 16-17% in 2008 to some bigger number. That is certainly possible, but too much can happen to ASP's and poly for me to want to make that prediction at this time. I did say that as TSL has previously guided, 2008 margins are higher than 2007.

To investinghobo,

Reasonable and plausible explanation--just imagine how much better the market and analysts would have received it if TSL explained that they believed the pro's of this decision in 2008 exceeded the con's?

I think their move into the US might have also prompted this change--I doubt American resellers and other companies would have wanted to deal with anything OTHER than USD. Regardless of the reason, TSL should have known that this $4 million hit would have raised a lot of eyebrows, and they should have explained it better both in their release and on the conference call (they never really got into it on the call).

Jack