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Robert Dydo  

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  • In Order To Be Viable, SunEdison's Strategy Must Deliver Operating Profit [View article]
    Ralph, thank you. Comments here are the proof how little people know about the accounting and real situation of SUNE, the developer. I am happy that my article shows some of those concerns and can serve as an opener for discussion. Of course, I am disappointed that my integrity is being questioned and that someone would say I write lies. Certainly, my article is an aberration from SA articles on the subject, and probably this is the reason for the stir up . As you mentioned, I hope SunEdison can manage successfully, as this will be good for the industry as a whole. However, this struggle is so expansive and needing so much improvement that I rather stay on the sidelines, just in case something may not work.
    Apr 10, 2015. 05:48 PM | 2 Likes Like |Link to Comment
  • Does High Module Efficiency Make SunPower A Better Company? [View article]
    Gumby,
    I do not market solar panels. I analyze solar companies. As an investor I see SPWR receiving high PE on low EPS. If this is the result of high-efficiency that is great, but this does not mean SPWR a better company or the reason is valid. I also explain how this lead is at risk with new technologies available.

    I think we are talking about two different subjects, and your argument does not question my thesis nor I question yours. SPWR could continue to sell its product successfully, but I think their presence at the top of the food-chain based on high-efficiency is not holding a lot of water, based on their business key performance indicators.
    Apr 10, 2015. 05:27 PM | Likes Like |Link to Comment
  • In Order To Be Viable, SunEdison's Strategy Must Deliver Operating Profit [View article]
    Anyone who knows the industry can be deeply concerned about the future if SunEdison would have issues with liquidity. My article is an expression why I do not own the stock. Everything I said is a fact taken from the company's data sets.
    I love the scale and the vision they are operating with, but as a person who knows the business dynamic, I have express my concerns. Good luck with your investments.
    Apr 10, 2015. 05:18 PM | 2 Likes Like |Link to Comment
  • In Order To Be Viable, SunEdison's Strategy Must Deliver Operating Profit [View article]
    Your emotions are causing you to be confused. 2000MW is installation rate. This means SunEdison in 2015 will process 2GW of projects including construction. They will sell 300MW to 3P and drop 425MW to TERP. They will keep 792MW on their balance sheet. If you look back at my article, I recognize $0.40 per watt from the combination of sale and drop, which gives SunEdison DevDo $290M cash. Recently dropped projects from UK had a $1.70 ASP, at $0.40 cash margin, means they have 23.5% using my figures. In order to hold projects on their balance sheet, they need to invest own cash at 20%. I calculated at $1.5 COGS per watt 792MW as $237M. They need that money. So this is a capital expense seen on the balance. Same as the construction of projects. I do not even bother about those loans, as I assume they will simply cycle through them as they sell other projects and regain leverage. The issue is clear. They are paying for operations from debt and selling equity. If you are an accountant I am stunned, you do not know this.
    Apr 10, 2015. 05:10 PM | 6 Likes Like |Link to Comment
  • In Order To Be Viable, SunEdison's Strategy Must Deliver Operating Profit [View article]
    Investor1989,
    My article is not about consolidated SunEdison. It is specifically about the developer, the company, which sell projects to third parties and drop projects into TERP. With the exception of the reference to FYE 2014 results Q4 2014 and Q4 2015 are financial quotes pertaining to SunEdison DevCo only. I would suggest listening to presentation for the fourth time and this why:
    1. My article does not discuss gross margins. It reflects on operating expenses. I know you have no idea about accounting because you cannot tell the difference. Drops to TERP are recognized on investing part of the cash flow. SunEdison receives this as cash, never using income statement. They refer to it as a cash margin. I compare cash margin to what they did for operating expense in Q4 2014 and what they will do in Q4 2015. SunEdison is. Based on the operating expense improvement they need to take back $243M. Again if you knew accounting, you would know how difficult that is.
    2. SunEdison DevCo ‘s value of systems is $3B, and liability against is $3.2B. This means if all of those projects are sold to 3P or dropped to TERP its gross margin or cash margins is only 11% from 20%. TERP borrowing is an additional $1.6B plus $800M in the bond they sold at 5.87%. The presentation shows this very well on page 17 of Q4 2014 results for SUNE.
    3. The Final blow to your accounting knowledge. $1.5B warehouse facility is a cluster of borrowing “arranged” by Sun DevCo for “TERP” to accommodate drops of projects, in case TERP Is short of cash. This is a cluster of lenders willing to lend money to TERP to get SUNE Devco projects. A fancy word for a line of credit.
    Apr 10, 2015. 04:55 PM | 8 Likes Like |Link to Comment
  • Does High Module Efficiency Make SunPower A Better Company? [View article]
    When comparing results SPWR as any other business , turning 20% GM and losing most of it on operating expenses. The efficiency drives the total amount of revenue, but that does not make SPWR better company.
    Apr 10, 2015. 04:38 PM | Likes Like |Link to Comment
  • Does High Module Efficiency Make SunPower A Better Company? [View article]
    Thank you for giving such a detail.
    Apr 10, 2015. 01:51 PM | 1 Like Like |Link to Comment
  • Does High Module Efficiency Make SunPower A Better Company? [View article]
    Perhaps author owns equity in the competitor for reasons noted in the article. Green stocks, what part of my article was not factual? I certainly wish to correct it. At 500% gain maybe it is time to evaluate how it got there to retain it?
    I see no commentary to conclude it.
    Apr 10, 2015. 01:51 PM | 1 Like Like |Link to Comment
  • Does High Module Efficiency Make SunPower A Better Company? [View article]
    Gumby, this article is not about product review, but about the company capitalizing on its technology, which you should see in gross margins. They way SunPower operates its business is at best mediocre as well.
    If I was reviewing module as value to consumer, I would follow what SunPower has already did for the promo, advertising 75% of more power based on limited to non existent deterioration. Those claims sell those modules, in the same way Bentley has its buyers.
    Apr 10, 2015. 01:17 PM | 1 Like Like |Link to Comment
  • Does High Module Efficiency Make SunPower A Better Company? [View article]
    Thank you, I am glad you see this in the same way.
    Apr 10, 2015. 01:04 PM | 2 Likes Like |Link to Comment
  • Does High Module Efficiency Make SunPower A Better Company? [View article]
    Solarcraig,
    My argument does not deny efficiency as factor of value. I deny it to be a factor in value for SunPower. I see no other way, but efficiency to create separation leading to next consolidation of the industry. Despite my commodity reference, I believe in principle of solar manufacturing to be technology, valued on more than volume and scarcity of output. SunPower did not make its high-efficient module to create more profits, and the PERC could be the reason that Chinese can.
    Apr 10, 2015. 01:03 PM | 1 Like Like |Link to Comment
  • China's And India's Increasing Impact On The Solar Industry [View article]
    "SunEdison have already invested untold billions in India in preparation for the country's planned solar PV boom"
    Where did they find those billions to invest? More research please.
    China has an impact on industry since 2008. Only last year they got serious in the installation scale.
    India, I doubt in the scale and the commitment. It would be nice and surely they can benefit a lot, but without clear laws, land management, foreign factory incentives, and dropping nonsense local content rules, there are just too many obstacles.
    Indian companies think they can build the manufacturing industry to support it, but this has been an issue for years. Unless they let Chinese in the country with reasonable investment rules and capital guarantees, tough going, in my view.
    Apr 8, 2015. 02:38 AM | Likes Like |Link to Comment
  • Yingli Energy - Good Performance, But Debt Overhang Remains An Issue [View article]
    How can someone who is a CA say that company with operating loss represents good investment opportunity by declaring it as a well run company?
    On what factors?
    Apr 7, 2015. 12:05 PM | Likes Like |Link to Comment
  • Canadian Solar And A Yieldco [View article]
    Yieldco is a sophisticated investment vehicle, which enables sponsor to benefit financially from the operating activities of the projects within yieldco portfolio in the form of dividends and IDRs. It also enables to produce gains in form of cash margin from drop-downs of projects into a portfolio owned by yield.
    There is nothing in that structure, which relates to manufacturing, however, the cash equity generated from drop-downs, dividends and IDRs will help the company to expand, including its scale and R&D as those are extra sources of capital, otherwise not available.
    This is not accounting hocus pocus. It is a well structured investment vehicle, which because of controlling interest, makes reporting transactions for it, outside of the income statement.
    Yieldcos can become de-consolidated and reporting of drop-downs could be simply as a sale.
    I agree that complexity is a a bit scary to people, but there is no more risk in yield than any other company out there.
    Apr 7, 2015. 11:28 AM | 1 Like Like |Link to Comment
  • Canadian Solar And A Yieldco [View article]
    The cash margin added to sponsor after drop-down (which is really a sale) reflects essentially gross margin when selling a project. So this is replacing sale with general ledger move. After this, project remains in the control of the sponsor. The benefit is the dividend. While structure is complicated, it is not impossible to see potency of yield vehicle. CSIQ, unlike SunEdison has own manufacturing revenue stream. Who is to say they will not build and sell projects as well? Lastly I suspect SPWR and FSLR joint venture yieldco will offer condition of minority ownership when IPO is done. Neither will control it, hence they will be selling projects to it and yield will report as an independent entity.
    I hope Canadian will explore all opportunities here.
    Apr 7, 2015. 09:21 AM | 1 Like Like |Link to Comment
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