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  • Utility-Scale Photovoltaic Inverter Market to Grow 60 percent 1 comment
    Sep 13, 2010 9:22 AM | about stocks: PWER, GE, AEIS, SATCEGY, FSLR, STP, JKS, CSIQ, SPWR, TSL, JASO, HSOLQ, LDK, ESLRQ, SUNEQ

    Its not hard to pick a stock in a sector that is entering a secular bull market, look at the past with Oil, Gold, Silver, Fertilizer, Agriculture,Solar, and this year : Rare Earth &  Photovoltaic Inverters.

    Pick and shovel of the Solar Sector: PWER - provides inverters.
    Solar panels are useless unless you can convert the energy trapped by solar panels into electricity. PWER does just that with its inverters.

    Its EPS estimates have risen dramatically higher since July while its stock price is actually lower than July 30-Aug. 2 highs because of the August market meltdown which caused almost all sectors to fall for 3 straight weeks.

    On July 30th, 2010 (NASDAQ:PWER) got a $18 - $20/shr target

    30-Jul-10 07:43 ET In Play Power-One: Color on qtr (9.96 ) : Merriman notes, last night, PWER reported a 2Q10 blowout with revs and EPS of $214.5 mln and $0.17 vs. consensus at $186/$0.10. 3Q rev guidance of $260 mln +/-$10 mln handily beat consensus at $199 mln. PWER had a book-to-bill ratio at 3.5 with strong bookings at $757 mln. Firm is raising its FY10 and FY11 EPS ests from $0.42 and $0.50 to $0.70 and $0.90, respectively (consensus is at $0.37/$0.49). Firm is raising its tgt range from $10-12 to $18-20 based on 20-22x P/E on its revised CY11 $0.90 EPS.

    Utility-Scale Photovoltaic Inverter Market to Grow 60 percent, Says IDC Energy Insights
    IDC Energy Insights - June 15, 2010

    IDC Energy Insights today announced the availability of a new report, Vendor Assessment: Industry Short List for Utility-Scale Photovoltaic Inverters for the North American Market (Doc #EI223398, June 2010) and reveals that the utility-scale photovoltaic (PV) inverter market is on pace to continue its 60% annual growth in the North American market for at least the next three to five years.

    According to the report, the dramatic growth of solar PV installations throughout Europe and Asia indicates that the North American utilities industry should be prepared to embrace the PV revolution in a demonstrably significant manner. This report evaluates 10 vendors of utility-scale inverter products for the North American market, including Advanced Energy (NASDAQ:AEIS), General Electric (NYSE:GE), Ingeteam, KACO, PV Powered, Satcon, Schneider Electric/Xantrex, Siemens, SMA, and Solectria.

    As such rapid growth often spurs new entrants, IDC Energy Insights expects the already crowded field of vendors to multiply as new start-ups and other industrial giants recognize the opportunity. At the same time, a few market leaders will rise from the pack and start to increase their own market share as the segment matures.

    "Thanks to dramatically decreasing production costs and price points, PV systems are more economical today than they ever have been," said Sam Jaffe, coauthor of the report and research manager for the Distributed Energy Strategies program at IDC Energy Insights. "The three fundamental legs that support a buying decision in the inverter field are cost, efficiency, and long-term reliability. The inverter is no longer a box of wires and parts bolted onto a PV array – it has become the heart and brains of the system."

    Key findings of the study include the following:

    • As the photovoltaic market grows, so does the solar inverter market, averaging 30-40% annual growth globally over the past five years. Among the drivers pushing the market for large-scale solar power are rate-payer pressure to increase access to renewable sources of energy, regulatory and policy requirements, government incentives, and declining PV module costs. 
    • Buyers have traditionally focused on the solar panel module as the differentiating piece of a PV installation. That is changing. Long dismissed as a "dumb box," the lowly inverter has transformed itself and is fast becoming the center of intelligence for a typical solar photovoltaic array. 
    • The inverter market is undergoing rapid evolution. Vendors have been investing heavily in R&D for several years and the fruits of those efforts are manifested in new models that boast higher efficiency, better reliability, and greater control. 

    "The report was designed to help buyers of large-scale inverters in North America identify and rate the most important product attributes to consider and the vendors who develop such products," continued Jaffe. "The study should be used as a tool to get started in the selection process."

    Find more information at idc-insights-community.com/energy.

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  • EPS100Momentum
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    Author’s reply » I would not rule out a buyout of either AEIS or PWER from SI or GE.
    It would make perfect sense after seeing the actions of other Multi-Billion dollar deals of late. MegaLarge companies are looking to use their cash or the cheap money thats available to grow thru M&A.
    13 Sep 2010, 02:52 PM Reply Like
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