Nov. 6, 2013, 9:15 AM
- Top 10 Gainers: MSPD +69%. MCHX +22%. REGI +14%. BCOR +12%. OXBT +10%. AXAS +10%. MYGN +9%. YRCW +7%. VRNG +7%. ANV +7%. AU +6%. ABIO +6%. Z +6%. OPEN +5%. RMTI +5%. NQ +5%. ECOM +5%.
- Top 10 Losers: STP -41%. CRIS -18%. TSLA -13%. MELI -11%. TNGO -10%. SZYM -10%. NAVB -7%. CYTX -7%. ANF -7%. CTRP -6%.
Nov. 4, 2013, 12:56 PM
- Positive Q3 guidance revisions from Canadian Solar (previous) and Daqo (DQ +11.2%) are fueling another massive rally in solar stocks, some of which jumped last Friday thanks to blowout Q3 numbers from First Solar (FSLR +4.6%).
- Canadian hiked the midpoint of its Q3 module shipment guidance range by more than 10%, and the midpoint of its gross margin guidance range by 800 bps. Daqo has upped its polysilicon shipment range to 1,200-1,275 MT from a prior 1,000 MT, albeit while slightly lowering its wafer shipment guidance to 6.5-6.6 MT from prior 6.8 MT (shipping delays are blamed).
- The guidance hikes follow a string of positive Q2 reports from Chinese solar firms in August, as companies saw both their sales and margins benefit from growing local demand, diminishing overcapacity, and strong shipments to the high-margin Japanese market. Credit Suisse recently predicted improving demand could lead excess Chinese supply to evaporate by late 2014 or 2015.
- Also: Suntech (STP +13.6%) has officially reached a deal to sell its large and bankrupt Wuxi, China unit to solar cell maker Shunfeng (previous), SunPower (SPWR +10.9%) has announced it's buying module cleaning robot developer Greenbiotics, and SolarCity (SCTY +16.4%) has announced (as part of its seemingly non-stop financing binge) it's selling $54.4M in solar asset-backed notes maturing in Dec. 2026.
- Today's winners, aside from the aforementioned companies: JKS +9.8%. JASO +9.2%. RSOL +8.3%. LDK +6.5%. HSOL +5.2%. YGE +7.4%. CSUN +6%. SOL +6.9%. SUNE +3.5%. TSL +9.7%.
- Solar ETFs: KWT, TAN
Nov. 4, 2013, 12:46 PM
Nov. 4, 2013, 7:49 AM
- Suntech Power (STP) agreed over the weekend to sell its core assets in China to Hong Kong-listed Shunfeng Photovoltaic for 3bB yuan ($492M), as it attempts to pay back creditors after defaulting on billions of dollars in debt.
- The unit acquired in the purchase, Wuxi Suntech Power, owns intellectual property, more than two gigawatts of solar panel manufacturing capacity and am R&D operation.
- The unit was declared insolvent earlier this year, and U.S. creditors have been moving to force the U.S.-listed parent company into bankruptcy.
- Shares +3.4% premarket.
Oct. 30, 2013, 12:53 PM
- China's Wuxi Guolian Development Group is offering to invest $150M or more in Suntech (STP +11.8%) as part of a deal that would yield " a comprehensive rehabilitation and restructuring of the financial and operational affairs of the Company." (PR)
- Guolian also intends for "related solar and other businesses it owns to be injected" into Suntech, and for JVs or "similar arrangements" to be formed.
- Suntech admits a deal with Guolian would create "substantial dilution for existing shareholders."
- The letter of intent comes a few days after solar cell manufacturer Shunfen won regulatory approval to buy Suntech's pivotal Wuxi, China unit, which filed for bankruptcy in March.
Oct. 28, 2013, 12:15 PM
- Though the Nasdaq is only down 0.1%, many 2013 Internet, solar, and enterprise software high-flyers are diving once more. Chinese names are well-represented in the group, as NQ Mobile continues crashing thanks to fraud allegations and Sohu plunges due to weak Q4 EPS guidance.
- The WSJ and NYT have each run pieces asking whether a new tech bubble is afoot, at least in certain hot sectors. "People are reaching for growth," says one fund manager quoted by the WSJ. Others argue the fact the high-flyers generally have substantial revenue, and are often profitable, makes the current situation different from the Dot.com bubble.
- Internet decliners: FB -3.4%. MELI -2.8%. GRPN -5%. ZNGA -2.7%. P -2.4%. DANG -7.6%. VIPS -7%. YY -4.8%. QIHU -5.6%. RENN -5.7%. SINA -2.4%. FUEL -4%.
- Solar decliners: JKS -12.4%. FSLR -4.8%. SOL -8.4%. YGE -8%. JASO -6.9%. GTAT -5.4%. SUNE -4.6%. SPWR -4.3%. SCTY -3.8%. STP -8.9%. TSL -13.2%.
- Enterprise decliners: CRM -3.8%. DATA -4.5%. MKTO -5.8%. WDAY -4%. DWRE -3.4%. VEEV -5.1%. IMPV -3.4%.
- Recent declines: I, II.
- Previous: Cashin sees mobile/cloud bubble
Oct. 25, 2013, 1:51 PM
- Solar cell manufacturer Shunfeng has won regulatory approval to acquire Suntech's (STP -6.3%) massive Wuxi, China unit, which filed for bankruptcy earlier this year. The unit possesses over 2GW of manufacturing capacity, patents, and Suntech's R&D ops, but also has $1.76B in debt.
- The FT reported two weeks ago Shunfeng had made a bid for the Wuxi unit. The deal doesn't cover Suntech's NYSE-listed holding company or its international ops, which have their own issues. Suntech's U.S. bondholders have sued to force the holding company into involuntary bankruptcy.
Oct. 15, 2013, 8:30 AM
- U.S. bondholders yesterday filed a petition in a New York court to force Suntech Power (STP) into involuntary bankruptcy.
- STP has amassed more than $2.3B in mostly Chinese debt and has posted losses amid a plunge in solar panel prices and trade sanctions by the U.S.; it defaulted on $500M-plus in convertible notes in March, which put its main Chinese subsidiary into bankruptcy proceedings in China.
Oct. 14, 2013, 7:57 AM
- Suntech Power (STP) -4% premarket following news the seizure of more solar fields developed with the backing of 88%-owned Global Solar Fund, bringing to 47 confiscated solar parks adding up to 37.8 MW, or 26.9% of GSF-backed generating capacity.
- The Court of Brindisi appoints judicial administrators for 27 sites seized Sept. 19, and authorizes the fields to continue operations and receive feed-in tariffs according to court guidelines.
Oct. 9, 2013, 1:21 PM
- A day after Internet stocks with big 2013 gains tumbled as part of a general rout in risk assets, solar stocks are largely doing the same (TAN -3.2%).
- Notable decliners include JA Solar (JASO -6.5%), JinkoSolar (JKS -5.6%), First Solar (FSLR -2%), SunPower (SPWR -2.2%), ReneSola (SOL -3.7%), Yingli (YGE -3.9%), Trina (TSL -2.2%), SunEdison (SUNE -0.4%), and Canadian Solar (CSIQ -4.6%).
- SolarCity (SCTY -4.7%) is following peers lower on a day when it announced the $158M acquisition of mounting systems supplier Zep Solar. Shares outperformed yesterday following the singing of a California solar bill.
- Suntech (STP -3.5%) has given up the premarket gains it saw on news two Chinese solar cell makers have made bids for the company.
- Debt-laden LDK (LDK +4.6%), which has missed out on this year's big solar rally, is bucking the trend.
Oct. 9, 2013, 7:46 AM
- Suntech Power (STP) +11.7% premarket after two Chinese solar power manufacturers tender bids for the main unit of the troubled company, FT reports, as officials attempt to cobble together a bankruptcy settlement.
- One bid came from Hong Kong-listed Shunfeng Photovoltaic, which is offering an equity stake in STP’s bankrupt Wuxi unit and a proposal to restructure the group’s near-$2B in debt; the other reportedly came from from a consortium comprising GCL-Poly Energy and the investment arm of STP’s home city Wuxi.
- Any deal will be closely watched by STP's international creditors, since it likely will determine whether any money can be reclaimed.
Sep. 30, 2013, 11:44 AM
- The Chinese government, which has already set a 35GW 2015 solar installation target, is now offering local solar manufacturers a 50% value-added tax (VAT) rebate for sales taking place from Oct. 2013-Dec. 2015.
- Chinese solar plays are responding well to the news. STP +15.6%. CSUN +23.5%. LDK +13.4%. SOL +5.4%. DQ +4.5%. JASO +3.9%. TSL +4.1%. YGE +3%.
- Also: JinkoSolar (JKS +3.6%) has announced a deal to supply 20MW of modules to the State Grid Corporation (China's biggest electric utility) for a 60MW demonstration project. Deliveries will take place in Q4.
- Last week's gains: Wednesday, Thursday, Friday
Sep. 26, 2013, 3:36 PM
- A Chinese court has delayed a ruling on the restructuring plan proposed by Suntech Power (STP -2%) until Dec. 20, putting off for now a settlement with implications for international creditors seeking to recover ~$600M in China.
- The case is seen as an important test of China’s 2007 bankruptcy law, which has rarely been applied to overseas-listed companies with assets in China.
- Many Chinese companies listed in the U.S. also have their primary assets in China, although the Chinese operation may be the parent company or - as in the case of STP - structured as a unit of the foreign entity; it means the STP case could serve as precedent for any future bankruptcies involving assets in mainland China.
- Once a bankruptcy decision is delivered on STP, analysts say a consolidation in the Chinese solar sector could begin in earnest.
Sep. 23, 2013, 3:58 PM
- Suntech Power (STP +0.7%) says an Italian court issued a ruling to seize more solar projects that received investments from STP's 88%-owned Global Solar Fund which invested in solar projects in Italy using STP panels.
- The court also ordered the seizure of tariffs paid to private companies that got investments from Global Solar.
- STP lawyers believe Global Solar used bonds that never existed as collateral in a partnership deal with the company.
Sep. 17, 2013, 2:51 PM
- In an official statement (translation), China's industry/IT ministry says it will ban solar manufacturing projects that "purely" expand capacity. However, the ministry is also mandating a solar company's annual spending on R&D and equipment upgrades combined must exceed 3% of revenue and RMB10M ($1.6M).
- Analysts thinks the mandate is a not-so-subtle way of urging companies to merge.
- As solar equipment suppliers such as GT Advanced (GTAT +2.7%) and Veeco (VECO -2.1%) can vouch, solar manufacturers (Chinese or otherwise) aren't investing much anyway, as they try to soak up the huge amounts of excess capacity created in past years.
- The revenue and gross margin figures provided in the Q2 reports of many solar names (not to mention the YTD performance of their shares) suggest decent progress is being made. Enough so that some think manufacturers will be compelled to add capacity next year.
- Most Chinese module vendors are trading lower, but not all of them: YGE -4.4%. STP -3.2%. JASO -2.2%. TSL -0.8%. LDK -0.6%. SOL +0.9%. CSIQ +1%. Polysilicon maker Daqo (DQ +9.9%) is up strongly.
Sep. 16, 2013, 3:26 PM
- China says it will impose a 6.5% tariff on materials from most U.S. polysilicon suppliers (TAN +1.4%; (KWT +1.5%) beginning Friday, but that's far short of threats it could slap anti-dumping duties of as much as 57%.
- The decision follows a U.S. move last year to impose tariffs on Chinese-made solar cells and after China and the EU settled a dispute in July over the alleged dumping of Chinese-made solar panels in Europe.
- High tariffs on solar-grade polysilicon would have risked hurting Chinese solar manufacturers, which depend on imports of raw materials, by raising their costs.
- Three U.S. suppliers are exempt: U.S.-based MEMC Pasadena (SUNE -2.2%) and two U.S. subsidiaries of Norway's Renewable Energy.
- CSUN +1.4%, CSIQ +1.3%, YGE +0.8%, TSL +0.3%, STP -3%, FSLR +1.4%, SPWR +3.4%, JKS -1.6%, JASO -0.2%, SOL +1.2%.
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