Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

STR Holdings IPO -- solar components -- hint of desperation

|Includes:ASTI, CSIQ, DSTI, ENER, ESLRQ, FSLR, SPIR, SPWR, STP, STR Holdings, Inc. (STRI)

STR Holdings (NYSE:STRI) IPO, Components for Solar Power Systems, scheduled for Friday, Nov 6
OBSERVATIONS

  • Use of $172mm in IPO Proceeds
  • Mostly to shareholders:  10mm of 12.3mm shares
  • Of the 2.3mm to company, 70% of company proceeds to repay debt & consulting termination fee
  • $240mm debt will remain on the balance sheet
Operating results declining
  • Substantial declines in income statement results.  For the six months ended June 30, 2009 interest payments constituted 44% of operating income, and trending higher
  • Hint of desperation by selling shareholders
This is the type of offering investors are starting to shun, in this market.  Appears overpriced, unless they are going to report an outstanding September quarter, which seems unlikely based on the six month trends

read more in IPO report
http://www.gaskinsco.com/linkto-stri.shtml