bigswing

A Look at Four Polysilicon-Based PV Manufacturers' Funding

Solar stocks rise more than 30% on average since this article published. I listed the price on July 8 and predicting it will rise in 2 months, now see the result:

Price on 7/8/08 Price on 8/25/08
LDK $29.72 $50.95
YGE $13.57 $18.39
STP $32.02 $47.26
JASO $13.75 $18.43
TSL $26.40 $34.92
SOL $12.02 $19.70
CSUN $6.68 $12.31
SOLF $12.70 $20.60
CSIQ $29.55 $33.24
FSLR $234.00 $277.00
SPWR $59.58 $96.98

This proves how wrong and how stupid this author.

A Look at Four Polysilicon-Based PV Manufacturers' Funding

Anyway, all solar stocks (including the 4 you mentioned) will bounce back from their recent low and will see 30%-60% gain in stock price in 2 months (depends on market condition)... wait and see

LDK $29.72
YGE $13.57
STP $32.02
JASO $13.75
TSL $26.40
SOL $12.02
CSUN $6.68
SOLF $12.70
CSIQ $29.55
FSLR $234.00
SPWR $59.58
WFR $53.59

A Look at Four Polysilicon-Based PV Manufacturers' Funding

The fact is none of the 4 companies need borrowed money to support their currently operations which are profitable despite high silicon costs... Their debts are used to expand their production capacity due to worldwide growing demand...

Another fact is that polysilicon is dropping now from the peak price $450-$500/kg earlier this year and more drop is expected later this year... There are several authorative forcasts now predicting that polysilicon price will drop well under $200/kg in 2 to 3 years...

A Look at Four Polysilicon-Based PV Manufacturers' Funding

First, all the 4 companies are high growth companies (see their quarterly and anual revenue and net earning growth)... for a high-growth company in a high growth industry, carrying some debts (either long-term or short-term) are very normal. They need to spend borrowed money in expanding their capaticy. Therefore some cap-ex are very normal so long as these debts are within managable level.

Second, these comapnies are making money, not as you said "lossing money"... Solar companies that are losing money now are ENER, ESLR, AKNS, ASTI, HOKU, DSTI... which are not included in your discussion...