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JA Solar (JASO) shares could be under pressure after Collins Stewart slashes its target...

JA Solar (JASO) shares could be under pressure after Collins Stewart slashes its target price to $4.50 from $5.50, citing falling solar cell prices that have failed to stimulate additional demand. The firm’s revised forecast sees Q2 revenues of $400M, below consensus and a 28% Q/Q decline. JASO -2.3% premarket; also LDK -2.9%, STP -1.3%, FSLR -0.3%.
Comments (1)
  • Skaterdude
    , contributor
    Comments (908) | Send Message
     
    This seems to be a very cash-hungry company. Net income makes up a large part of the cash flow requirements. I'm hoping that demand for solar holds up sufficiently to maintain pricing and cash flow, and reduce the dilution from selling equity at low prices. The current ratio is also tight. Inventory is rising and makes up about one quarter's revenue, from what I can tell from the latest income statement. Don't get me wrong - I've got a long position in this company and I want to see it succeed and launch from this low PE multiple. However, that's not a certain outcome.
    27 Jul 2011, 08:51 PM Reply Like
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