rana's Comments RSS Syndication from SeekingAlpha.com http://seekingalpha.comuser/127439/comments http://seekingalpha.com/article/93715-three-reasons-solar-sell-off-may-be-in-early-innings?source=feed#comment-244757 244757 we get examples like FSLR ENER..., but what about SOL WFR TSL that trade with PE's close to 10 for this year and many others that are well below?
most of this forward estimates are based on oil at 90-110. so companies that are growing well above 20% and have PE's in the teens or lower are overvalued?
let's get real and stop being like deers in the headlights. we will always get price flactuations since this is the nature of the market. read about it in articles that deal with market psychology.
are we in the first inning of major selloff? only time will tell. if it does it will be confluence of events that will drive the selloff. they will all create enough fear to make it happen.
saying that the selloff is because oil dropped to 100$ or the wrong claim of overvaluation (the wrong claim is because of the generalization, there are few that sure are overvalued), is just small part of what is driving and what will keep driving stock prices in the solar industry or in many others.]]> Wed, 03 Sep 2008 14:44:46 -0400 we get examples like FSLR ENER..., but what about SOL WFR TSL that trade with PE's close to 10 for this year and many others that are well below?
most of this forward estimates are based on oil at 90-110. so companies that are growing well above 20% and have PE's in the teens or lower are overvalued?
let's get real and stop being like deers in the headlights. we will always get price flactuations since this is the nature of the market. read about it in articles that deal with market psychology.
are we in the first inning of major selloff? only time will tell. if it does it will be confluence of events that will drive the selloff. they will all create enough fear to make it happen.
saying that the selloff is because oil dropped to 100$ or the wrong claim of overvaluation (the wrong claim is because of the generalization, there are few that sure are overvalued), is just small part of what is driving and what will keep driving stock prices in the solar industry or in many others.]]> http://seekingalpha.com/article/93440-solar-breaks-oil-price-dependence?source=feed#comment-243325 243325 to read a comment like the one of sirfisup is quiet discouraging:"I must say that the writer is a pure amateur and knows very little about solar technology and where its heading. Sand is about one third of the earths natural resource and is the primary commodity to manufacture silicon. Solar technology efficiencies are improving significantly and of all the alternative energies is the cleanest form of energy. The writer must have very little regrad for the emerging economies of China and India and unfortunately a very poor understanding of the fundamentals of capitalism. The only reason why you haven't received many more retort replies is simply because you are an idiot."
this comment itself shows very low intelligance and no knowledge of the stock market and how it works. from the comment one might assume that solar stocks are heading only one way and will not have pullbacks of any degree. this is not the case.
investing in stocks is sensitive to many outside variables like the availability of money (interest rates), alternative investments, sentiment, political climate and many others.
they all translate to valuations. when everything is good we can get double the valuation relative to the bad times.
the fact that silicon will get cheaper and that the solar technologies are advancing will carry risk that is as high as is the opportunity. the solar industry will be commoditized all along the food chane. while costs will be much lower so will go the ASP's.
history shows us how things work and we will be fools to ignore it.
while i am a huge solar fan, i will never close my eyes and ears to the presence of risk. any growth industry carries risk and investing in stocks in these industries is also risky.
i can only wish investing was as simple as some of the commentators make it seem. we were all much richer. since it's not, please invest with your head and not with your heart. it is way more profitable (i started investing with my heart and fell in love with investments and it didn't work well. sometimes it's worst than a divorce as you can pay much more than half) :)]]> Mon, 01 Sep 2008 14:36:25 -0400 to read a comment like the one of sirfisup is quiet discouraging:"I must say that the writer is a pure amateur and knows very little about solar technology and where its heading. Sand is about one third of the earths natural resource and is the primary commodity to manufacture silicon. Solar technology efficiencies are improving significantly and of all the alternative energies is the cleanest form of energy. The writer must have very little regrad for the emerging economies of China and India and unfortunately a very poor understanding of the fundamentals of capitalism. The only reason why you haven't received many more retort replies is simply because you are an idiot."
this comment itself shows very low intelligance and no knowledge of the stock market and how it works. from the comment one might assume that solar stocks are heading only one way and will not have pullbacks of any degree. this is not the case.
investing in stocks is sensitive to many outside variables like the availability of money (interest rates), alternative investments, sentiment, political climate and many others.
they all translate to valuations. when everything is good we can get double the valuation relative to the bad times.
the fact that silicon will get cheaper and that the solar technologies are advancing will carry risk that is as high as is the opportunity. the solar industry will be commoditized all along the food chane. while costs will be much lower so will go the ASP's.
history shows us how things work and we will be fools to ignore it.
while i am a huge solar fan, i will never close my eyes and ears to the presence of risk. any growth industry carries risk and investing in stocks in these industries is also risky.
i can only wish investing was as simple as some of the commentators make it seem. we were all much richer. since it's not, please invest with your head and not with your heart. it is way more profitable (i started investing with my heart and fell in love with investments and it didn't work well. sometimes it's worst than a divorce as you can pay much more than half) :)]]> http://seekingalpha.com/article/91448-trina-solar-will-2009-be-a-breakout-year?source=feed#comment-233336 233336 they might even give TSL a push, hopefuly :)]]> Mon, 18 Aug 2008 15:04:55 -0400 they might even give TSL a push, hopefuly :)]]> http://seekingalpha.com/article/91448-trina-solar-will-2009-be-a-breakout-year?source=feed#comment-233334 233334 like mark mentioned, they totaly got the exchange loss wrong. worst than that, they are very wrong about margins.
the only good thing is that the solar market is strong for now, so operations are holding the company from going to zero.
unfortunate for me i'm long this crap. i assumed that earnings will be around 0.85$ and as such we will be able to cross 40$ easily.
as always with TSL they like to surprise us, but it seems they know onky one direction with the surprises.
at 30$ this stock is very cheap, but i guess it deserves this "cheapness" and we also deserve the surprises as we keep liking the negative management premium, which is increasing each quarter.]]> Mon, 18 Aug 2008 15:01:49 -0400 like mark mentioned, they totaly got the exchange loss wrong. worst than that, they are very wrong about margins.
the only good thing is that the solar market is strong for now, so operations are holding the company from going to zero.
unfortunate for me i'm long this crap. i assumed that earnings will be around 0.85$ and as such we will be able to cross 40$ easily.
as always with TSL they like to surprise us, but it seems they know onky one direction with the surprises.
at 30$ this stock is very cheap, but i guess it deserves this "cheapness" and we also deserve the surprises as we keep liking the negative management premium, which is increasing each quarter.]]> http://seekingalpha.com/article/88850-las-vegas-housing-casino-revenues-have-dropped-like-a-pair-of-loaded-dice?source=feed#comment-230896 230896 these markets are in a downtrend that is supported by the fundamentals. prices will be better in the near future. ]]> Fri, 15 Aug 2008 07:10:52 -0400 these markets are in a downtrend that is supported by the fundamentals. prices will be better in the near future. ]]> http://seekingalpha.com/article/90597-ldk-solar-nearly-doubles-estimates?source=feed#comment-229105 229105 Wed, 13 Aug 2008 01:10:23 -0400 http://seekingalpha.com/article/90597-ldk-solar-nearly-doubles-estimates?source=feed#comment-229101 229101 GT solar will not be supplying to LDK which is why many law suits are being presented against GT solar, but i guess facts don't bother people as they want to say something.
as for customers they have one like Qimonda, but i guess the fact that they have more than 4 times the sales of these giants like SPWR, YGE....., is problematic to what alpha wants to say, so he calls them 3rd and 4th tier. :) it would have been funny if it wasn't so sad that people are posting from the imagination and not the facts. it would have been good red flag on LDK if the facts were correct.
nanosolar was a favorite of mine as a real winner, which thin film will probably won't be, but after almost a year waiting for them to go with big projects after they said they are starting to go commercial, i'm starting to be a little sceptic about them. something is wrong there, since they really don't have any problem with financing (just like many others i tried to check with them about investing, but they declined and in the end they posted in thier site that they don't plan to raise money soon). if they will be able to do what they say, they will rock.
regarding thin film - the funny thing is that if polysi will drop to the levels people are talking, it will destroy the competitive advantage of thin film against PV.
EMKR might be the black horse if they will leverage thier technology by licensing it to others instead of going solo.
disruptive technologies may win the market or not, but the time isn't near. for the next 2-3 years, no matter what technologies will emerge, the PV industry will still be the biggest in this area (financing and actual time to build these kind of plants take a long time).
btw, the fact that wafer pricing was high this quarter is good for SOL, if they controlled the costs side.

]]> Wed, 13 Aug 2008 00:57:42 -0400 GT solar will not be supplying to LDK which is why many law suits are being presented against GT solar, but i guess facts don't bother people as they want to say something.
as for customers they have one like Qimonda, but i guess the fact that they have more than 4 times the sales of these giants like SPWR, YGE....., is problematic to what alpha wants to say, so he calls them 3rd and 4th tier. :) it would have been funny if it wasn't so sad that people are posting from the imagination and not the facts. it would have been good red flag on LDK if the facts were correct.
nanosolar was a favorite of mine as a real winner, which thin film will probably won't be, but after almost a year waiting for them to go with big projects after they said they are starting to go commercial, i'm starting to be a little sceptic about them. something is wrong there, since they really don't have any problem with financing (just like many others i tried to check with them about investing, but they declined and in the end they posted in thier site that they don't plan to raise money soon). if they will be able to do what they say, they will rock.
regarding thin film - the funny thing is that if polysi will drop to the levels people are talking, it will destroy the competitive advantage of thin film against PV.
EMKR might be the black horse if they will leverage thier technology by licensing it to others instead of going solo.
disruptive technologies may win the market or not, but the time isn't near. for the next 2-3 years, no matter what technologies will emerge, the PV industry will still be the biggest in this area (financing and actual time to build these kind of plants take a long time).
btw, the fact that wafer pricing was high this quarter is good for SOL, if they controlled the costs side.

]]> http://seekingalpha.com/article/88520-solar-and-cash-the-big-boys-have-an-answer-do-you?source=feed#comment-220103 220103 Fri, 01 Aug 2008 10:02:28 -0400 http://seekingalpha.com/article/88520-solar-and-cash-the-big-boys-have-an-answer-do-you?source=feed#comment-219918 219918 i like the way you point out the risks while not making a stand as it's almost impossible to point out future winners and losers in an evolving industry.
i totaly love SOL (long). it seems they look great almost in every aspect, cash needs aside. since they are wafer suppliers cash needs are lower than for the integrated companies and since it's now a cloud over the manufac.. it seems the company is in better shape than many others. when cash needs will cease to be a problem the company will be less desired as the risk for integrated companies will be percieved as lower.
yet, there is one thing i miss in all the articles regarding solars, they all deal with the manufacturers along the food chain, but i saw none (maybe there are few, but i didn't see them), that deal with the other related companies.
INFRASTRUCTURE and EQUIPMENT. these are two sectors within the industry that will probably still grow even if pricing and margins will be volatile for the manufac...
our goal is to find the cheap stocks in these sectors or to find market leaders that don't have huge price premium.
i already pointed out SPIR (which i'm long), but i'm looking at other companies like FLR ASYS SOLR .... for good entry points.
everyone must do thier own due dilligence on each stock as they are very different (what they do, how big they are, how much risk they carry...) and if they like a stock then it's time to calculate entry price based on the return you demand that will create a high risk reward ratio.
if the price you want can't be achieved you stay out, or you can make a multiple step plan which basically calls for different levels of entry prices (taking into account the number of shares you want to buy). at the end of the proccess you need the average price to be equal or lower than the initial price you calculated. this method is more compicated and more risky so it is better for most to stick with the simple method.]]> Fri, 01 Aug 2008 07:12:56 -0400 i like the way you point out the risks while not making a stand as it's almost impossible to point out future winners and losers in an evolving industry.
i totaly love SOL (long). it seems they look great almost in every aspect, cash needs aside. since they are wafer suppliers cash needs are lower than for the integrated companies and since it's now a cloud over the manufac.. it seems the company is in better shape than many others. when cash needs will cease to be a problem the company will be less desired as the risk for integrated companies will be percieved as lower.
yet, there is one thing i miss in all the articles regarding solars, they all deal with the manufacturers along the food chain, but i saw none (maybe there are few, but i didn't see them), that deal with the other related companies.
INFRASTRUCTURE and EQUIPMENT. these are two sectors within the industry that will probably still grow even if pricing and margins will be volatile for the manufac...
our goal is to find the cheap stocks in these sectors or to find market leaders that don't have huge price premium.
i already pointed out SPIR (which i'm long), but i'm looking at other companies like FLR ASYS SOLR .... for good entry points.
everyone must do thier own due dilligence on each stock as they are very different (what they do, how big they are, how much risk they carry...) and if they like a stock then it's time to calculate entry price based on the return you demand that will create a high risk reward ratio.
if the price you want can't be achieved you stay out, or you can make a multiple step plan which basically calls for different levels of entry prices (taking into account the number of shares you want to buy). at the end of the proccess you need the average price to be equal or lower than the initial price you calculated. this method is more compicated and more risky so it is better for most to stick with the simple method.]]> http://seekingalpha.com/article/85058-chinese-solar-stocks-present-compelling-value?source=feed#comment-207449 207449 if we take low conversion price of 40$ per ADS we get 3.5M additional shares. if we add this to the current count we have around 28.6M shares.
if we had this count in this Q the current estimated EPS for Q2 2008 would have been (under the assumption of the mid range, which i agree with jack that it's more likely we'll be at the higher end, but we always prefer being conservative):
73-74
this means we have a 12-13% reduction in the EPS.
the important thing is that the cloud of financing will be lifted (at least for the short term).
margins are still a problem, but it goes to all the industry and the higher growth might compensate for that partially.
regarding the stock price - if we take the new dilution into account and assume 10% EPS growth for each coming Q and use the mediam assumption for the current Q - we get EPS around 3$ (this is super conservative if we assume no more margin erosion). we have 2008 PE around 11 and 2009 is under 8.5 assuming EPS of 4$ for 2009 (33% EPS growth for 2009).
i like the numbers, but off course everyone needs to make thier own decisions regarding price vs. risk and there are clouds out there in the futureas we don't have a clue regarding which technology will be the big winner, or how silicon prices will be in the future (some new companies that are building new silicon plants may not be able to raise enough money to complete the new plants, see HOKU as an example) and so many other uncertainties that with the current environment of risk aversion is impacting the prices of risky assets.
]]> Thu, 17 Jul 2008 02:53:10 -0400 if we take low conversion price of 40$ per ADS we get 3.5M additional shares. if we add this to the current count we have around 28.6M shares.
if we had this count in this Q the current estimated EPS for Q2 2008 would have been (under the assumption of the mid range, which i agree with jack that it's more likely we'll be at the higher end, but we always prefer being conservative):
73-74
this means we have a 12-13% reduction in the EPS.
the important thing is that the cloud of financing will be lifted (at least for the short term).
margins are still a problem, but it goes to all the industry and the higher growth might compensate for that partially.
regarding the stock price - if we take the new dilution into account and assume 10% EPS growth for each coming Q and use the mediam assumption for the current Q - we get EPS around 3$ (this is super conservative if we assume no more margin erosion). we have 2008 PE around 11 and 2009 is under 8.5 assuming EPS of 4$ for 2009 (33% EPS growth for 2009).
i like the numbers, but off course everyone needs to make thier own decisions regarding price vs. risk and there are clouds out there in the futureas we don't have a clue regarding which technology will be the big winner, or how silicon prices will be in the future (some new companies that are building new silicon plants may not be able to raise enough money to complete the new plants, see HOKU as an example) and so many other uncertainties that with the current environment of risk aversion is impacting the prices of risky assets.
]]> http://seekingalpha.com/article/85058-chinese-solar-stocks-present-compelling-value?source=feed#comment-207151 207151 the stock created a falling wedge formation with bullish divergence on the RSI on 3 points and the same with the money flow.
i'm long SPIR and adding.]]> Wed, 16 Jul 2008 15:39:37 -0400 the stock created a falling wedge formation with bullish divergence on the RSI on 3 points and the same with the money flow.
i'm long SPIR and adding.]]> http://seekingalpha.com/article/85058-chinese-solar-stocks-present-compelling-value?source=feed#comment-207133 207133 as i posted before regarding pricing of wafers in taiwan, the prices moved up in June which brings more pressure to the market.]]> Wed, 16 Jul 2008 15:26:19 -0400 as i posted before regarding pricing of wafers in taiwan, the prices moved up in June which brings more pressure to the market.]]> http://seekingalpha.com/article/85058-chinese-solar-stocks-present-compelling-value?source=feed#comment-207127 207127 i looked at each news item in the Q to get the bookings number and the estimated shipments from the 1st Q report, the guidance for Q2.
i didn't calculate the exact average period of the bookings, but if it's for 5-6 years, or 24 quarters, the average addition per Q is over 40MW. do the math.]]> Wed, 16 Jul 2008 15:14:56 -0400 i looked at each news item in the Q to get the bookings number and the estimated shipments from the 1st Q report, the guidance for Q2.
i didn't calculate the exact average period of the bookings, but if it's for 5-6 years, or 24 quarters, the average addition per Q is over 40MW. do the math.]]> http://seekingalpha.com/article/85058-chinese-solar-stocks-present-compelling-value?source=feed#comment-206846 206846 if we take the lower end of the results we get 200M$ sales and 14% operating margin. this gives us 28M$ operating profit.
if we assume higher interest expenses, net, and lower exchange loss, which will offset each other, and 10% tax expense we get:
28000000-6200000=21800...
EPS - 19620000/25130000=0.78...
if we use the median:
202500000*0.146=295650...
EPS - 0.84
we have a range of 0.78-0.89 between the high and low end, depending on exchange loss, interest expenses, net, and income tax.
the median gives us 0.09$ better than estimates.
a big question will be the margins.]]> Wed, 16 Jul 2008 10:33:50 -0400 if we take the lower end of the results we get 200M$ sales and 14% operating margin. this gives us 28M$ operating profit.
if we assume higher interest expenses, net, and lower exchange loss, which will offset each other, and 10% tax expense we get:
28000000-6200000=21800...
EPS - 19620000/25130000=0.78...
if we use the median:
202500000*0.146=295650...
EPS - 0.84
we have a range of 0.78-0.89 between the high and low end, depending on exchange loss, interest expenses, net, and income tax.
the median gives us 0.09$ better than estimates.
a big question will be the margins.]]> http://seekingalpha.com/article/84950-expect-continued-canadian-solar-financing-this-year?source=feed#comment-206320 206320 Tue, 15 Jul 2008 15:59:44 -0400 http://seekingalpha.com/article/85058-chinese-solar-stocks-present-compelling-value?source=feed#comment-206289 206289 there is no talk about TSL (which i'm long) poly positioning but what if..
with that said, it seems you don't know how poly contracts work, so you better learn them first and than we can talk about possible scenarios.]]> Tue, 15 Jul 2008 15:28:55 -0400 there is no talk about TSL (which i'm long) poly positioning but what if..
with that said, it seems you don't know how poly contracts work, so you better learn them first and than we can talk about possible scenarios.]]> http://seekingalpha.com/article/85058-chinese-solar-stocks-present-compelling-value?source=feed#comment-206065 206065 if we'll get growing demand next year for silicon from the semiconductors industry, WFR will probably go balistic while TSL will go down hill.
for this reason alone they can't be compared and there are other reasons which i won't even mention.
i am a solar fan myself, but i am realistic and as long as the markets are bearish there will be negative premium for high growth high risk companies.]]> Tue, 15 Jul 2008 11:51:44 -0400 if we'll get growing demand next year for silicon from the semiconductors industry, WFR will probably go balistic while TSL will go down hill.
for this reason alone they can't be compared and there are other reasons which i won't even mention.
i am a solar fan myself, but i am realistic and as long as the markets are bearish there will be negative premium for high growth high risk companies.]]> http://seekingalpha.com/article/84825-is-there-value-in-silicon-solar-pv?source=feed#comment-206021 206021 do you really think that CSIQ will have 600% earnings growth in 2009 and 2010?
i only commented on the reason we don't use 1 year data, just like the reason we calculate moving averages and exponantial MA or the reason we use logarithmic scales and not linear.
if it's not understood you can use the unsmoothed method, but it will probably cost you somewhere down the line.
even here with CSIQ, if you think under 1 is good measure of value, you can pay 500$ for this stock and stay well under 0.5.
do you really think it's logical?]]> Tue, 15 Jul 2008 11:23:21 -0400 do you really think that CSIQ will have 600% earnings growth in 2009 and 2010?
i only commented on the reason we don't use 1 year data, just like the reason we calculate moving averages and exponantial MA or the reason we use logarithmic scales and not linear.
if it's not understood you can use the unsmoothed method, but it will probably cost you somewhere down the line.
even here with CSIQ, if you think under 1 is good measure of value, you can pay 500$ for this stock and stay well under 0.5.
do you really think it's logical?]]> http://seekingalpha.com/article/84825-is-there-value-in-silicon-solar-pv?source=feed#comment-205800 205800 if a company made 1 cent last year and will make 1$ this year and 2$ next year and share price is 50$ with 50 million shares. we get PEG of 0.05 using the above method. if we will apply the concept of PEG of 1 the stock price will be 1000$, while next year we will get PEG of 5 which will take the price to 200$. (all is theoretical and is given for example purposes).
in order to smooth the results and get better picture of the longer term picture we use the 5 yr. expected growth which gives us very different results.
we still get very low numbers compared to other sectors, but no way near these results.
overall good post as it's very informative and comparative.
]]> Tue, 15 Jul 2008 08:26:52 -0400 if a company made 1 cent last year and will make 1$ this year and 2$ next year and share price is 50$ with 50 million shares. we get PEG of 0.05 using the above method. if we will apply the concept of PEG of 1 the stock price will be 1000$, while next year we will get PEG of 5 which will take the price to 200$. (all is theoretical and is given for example purposes).
in order to smooth the results and get better picture of the longer term picture we use the 5 yr. expected growth which gives us very different results.
we still get very low numbers compared to other sectors, but no way near these results.
overall good post as it's very informative and comparative.
]]> http://seekingalpha.com/article/84950-expect-continued-canadian-solar-financing-this-year?source=feed#comment-205780 205780 outstanding shares will be around 35-35.5 M shares
fully diluted will be around 36.5 M shares.
go back to the report and check basic and diluted. diluted counts all probable shares that will be issued, including the convertible bonds since the conversion price was well inside the money.
for more info check the accounting standarts, which you don't like for one side of the equation but like them double what they warrant on the bad side.
please, try and give relaible info and don't get influenced by your basic thesis regarding certain companies.]]> Tue, 15 Jul 2008 08:10:46 -0400 outstanding shares will be around 35-35.5 M shares
fully diluted will be around 36.5 M shares.
go back to the report and check basic and diluted. diluted counts all probable shares that will be issued, including the convertible bonds since the conversion price was well inside the money.
for more info check the accounting standarts, which you don't like for one side of the equation but like them double what they warrant on the bad side.
please, try and give relaible info and don't get influenced by your basic thesis regarding certain companies.]]> http://seekingalpha.com/article/84616-ldk-solar-forecasting-sunny-skies-in-q2-earnings?source=feed#comment-203363 203363 crunching numbers to all these companies is too much to ask from you especially as we can't paste excel spreadsheets to the posts.
thank you in advance, but even if you can't thanks for LDK, one of my favorites.]]> Fri, 11 Jul 2008 18:15:31 -0400 crunching numbers to all these companies is too much to ask from you especially as we can't paste excel spreadsheets to the posts.
thank you in advance, but even if you can't thanks for LDK, one of my favorites.]]> http://seekingalpha.com/article/84425-it-s-not-easy-being-evergreen-cramer-s-lightning-round-7-9-08?source=feed#comment-202073 202073 i used his picks as a contrarian. it always seems to me that he is picking longs at the highs and shorts at the bottom.
2 years back i saved tons of money on CEPH using his advice. when he said to buy when the stock went to 80 i ran to the hills and it took a nose dive.
it also seems to me he is like day trader. one day he says FSLR is huge buy, next day he says CEO sells tons of shares so we don't like FSLR, few weeks go by and again he loves FSLR.
i wonder if someone is calculating his returns - it will be very interesting to see if he's in the green or if he's a consistant loser.
]]> Thu, 10 Jul 2008 08:34:06 -0400 i used his picks as a contrarian. it always seems to me that he is picking longs at the highs and shorts at the bottom.
2 years back i saved tons of money on CEPH using his advice. when he said to buy when the stock went to 80 i ran to the hills and it took a nose dive.
it also seems to me he is like day trader. one day he says FSLR is huge buy, next day he says CEO sells tons of shares so we don't like FSLR, few weeks go by and again he loves FSLR.
i wonder if someone is calculating his returns - it will be very interesting to see if he's in the green or if he's a consistant loser.
]]> http://seekingalpha.com/article/83769-polysilicon-based-pv-manufacturers-clarifying-the-financial-issues?source=feed#comment-201772 201772
regarding SPIR

the big growth comes from the solar equipment segment akthough there is sime growth in the semis segment.
the company has a lot of customers which is a positive.
the company is getting advances more than deposits which can make the cash flows sufficient to achieve growth objectives.
the company has customers in the PV and the thin film segments, which may act as support if one of the technologies lose in this wild race.
a lot of companies are now building new facilities and after they will finish with all the land developement, reactors and other big items they will need the equipment to produce the end products, this equals to lot of growth still ahead (unless the industry cracks very hard).

we can see that the growth in the solar segment is as good as many of the companies we look at daily in this sector.
if there is a decline in poly prices which may hurt margins for the other companies we watch, it may have positive impact on SPIR if some will buy new lines in order to get more efficient. it will probably have less impact than on the others, unless prices crash and than everyone is game.

i hope this gives some clue to how I LOOK AT THE COMPANY AND THE SECTOR. there are some other data that we can look at and some basic assumptions regarding this industry when we try and analyze these numbers, but without using the excel it's too much work and most of it was posted in many parts in the past.

in the next few days i'll deal with the other companies, but i will use more words and less numbers. ]]> Wed, 09 Jul 2008 17:11:24 -0400
regarding SPIR

the big growth comes from the solar equipment segment akthough there is sime growth in the semis segment.
the company has a lot of customers which is a positive.
the company is getting advances more than deposits which can make the cash flows sufficient to achieve growth objectives.
the company has customers in the PV and the thin film segments, which may act as support if one of the technologies lose in this wild race.
a lot of companies are now building new facilities and after they will finish with all the land developement, reactors and other big items they will need the equipment to produce the end products, this equals to lot of growth still ahead (unless the industry cracks very hard).

we can see that the growth in the solar segment is as good as many of the companies we look at daily in this sector.
if there is a decline in poly prices which may hurt margins for the other companies we watch, it may have positive impact on SPIR if some will buy new lines in order to get more efficient. it will probably have less impact than on the others, unless prices crash and than everyone is game.

i hope this gives some clue to how I LOOK AT THE COMPANY AND THE SECTOR. there are some other data that we can look at and some basic assumptions regarding this industry when we try and analyze these numbers, but without using the excel it's too much work and most of it was posted in many parts in the past.

in the next few days i'll deal with the other companies, but i will use more words and less numbers. ]]> http://seekingalpha.com/article/83769-polysilicon-based-pv-manufacturers-clarifying-the-financial-issues?source=feed#comment-201472 201472 i don't find a way to copy straight from the excel.
is there a way? if so, how?]]> Wed, 09 Jul 2008 11:49:08 -0400 i don't find a way to copy straight from the excel.
is there a way? if so, how?]]> http://seekingalpha.com/article/83940-a-look-at-four-polysilicon-based-pv-manufacturers-funding?source=feed#comment-201437 201437 untill this post he gave no data and was plain negative.
in this post he specified the cash needs of the companies as he translates them form the reports and gave us his opinion of the danger that lies ahead.
in his opinion this will bring this companies to bad times in the future.

there is nothing wrong with that. on the contrary, we must embrace any opinion that is based on data, as this makes us more educated about what we are facing.

we don't need to afree with this, but we must say thanks for the data presented to us.

those of us that already knew this will look forward for other new data which will be posted.

so to you emvoy don't mind what people are saying. as long as you bring data to support your assumptions and your analysis this is a good thing.
this is coming from one of the people that really disliked the early posts as they gave no references to any data. on this post and somewhere earlier in another thread there were references so it's a good thing.

i personally read things differently, but i totally agree that there is big risk when money needs to be raised constantly, for a company and even can be for a sector as a whole. at least in the short to medium term regarding the sector.]]> Wed, 09 Jul 2008 11:30:05 -0400 untill this post he gave no data and was plain negative.
in this post he specified the cash needs of the companies as he translates them form the reports and gave us his opinion of the danger that lies ahead.
in his opinion this will bring this companies to bad times in the future.

there is nothing wrong with that. on the contrary, we must embrace any opinion that is based on data, as this makes us more educated about what we are facing.

we don't need to afree with this, but we must say thanks for the data presented to us.

those of us that already knew this will look forward for other new data which will be posted.

so to you emvoy don't mind what people are saying. as long as you bring data to support your assumptions and your analysis this is a good thing.
this is coming from one of the people that really disliked the early posts as they gave no references to any data. on this post and somewhere earlier in another thread there were references so it's a good thing.

i personally read things differently, but i totally agree that there is big risk when money needs to be raised constantly, for a company and even can be for a sector as a whole. at least in the short to medium term regarding the sector.]]> http://seekingalpha.com/article/83769-polysilicon-based-pv-manufacturers-clarifying-the-financial-issues?source=feed#comment-201354 201354
sales

2006 - 20.1
2007 - 38.4
2008 Q1 - 14.9

operating P/(L)

2006 - (8.3)
2007 - (3.7)
2008 Q1 - (0.2)

balance sheet

31/12/06

cash and equiv - 1.54
accounts rec.. - 4.01
inventories - 4.22
deposits - 2.58

equipment L.C. - 0
accounts payable - (1.98)
accrued liabilities - (5.01)
advances on contracts - (6.4)
L.T. equipment L.C. - 0
L.T. advances on contracts - (1.82)

31/12/07

cash and equiv - 2.37
accounts rec.. - 12.77
inventories - 18.51
deposits - 2.48

equipment L.C. - (1.17)
accounts payable - (2.91)
accrued liabilities - (6.06)
advances on contracts - (23.6)
L.T. equipment L.C. - (1.75)
L.T. advances on contracts - (1.95)

31/03/08

cash and equiv - 2.2
accounts rec.. - 8.74
inventories - 21.19
deposits - 2.00

equipment L.C. - (1.17)
accounts payable - (3.92)
accrued liabilities - (6.34)
advances on contracts - (21.47)
L.T. equipment L.C. - (1.46)
L.T. advances on contracts - (1.77)


cash flows

operational

2006 - 0.48
2007 - (7.27)
2008 Q1 - 0.94

investing

2006 - (9.35)
2007 - 5.88
2008 Q1 - (0.54)


Solar segment

2006
sales - 6.99
oper. P/L - (4.01)
2007
sales - 23.1
oper. P/L - 0.76
2008 Q1
sales - 10.67
oper. P/L - 0.33


we can see good growth.
there are problems with the tight liquidity of the company.
company gets more advances than deposits.
pretty high level of inventory, should work it down.

it is likely that the biomed segment will be sold or some kind of spin off which will improve the bottom line of the company as a whole.

i will continue this later.
]]> Wed, 09 Jul 2008 10:31:40 -0400
sales

2006 - 20.1
2007 - 38.4
2008 Q1 - 14.9

operating P/(L)

2006 - (8.3)
2007 - (3.7)
2008 Q1 - (0.2)

balance sheet

31/12/06

cash and equiv - 1.54
accounts rec.. - 4.01
inventories - 4.22
deposits - 2.58

equipment L.C. - 0
accounts payable - (1.98)
accrued liabilities - (5.01)
advances on contracts - (6.4)
L.T. equipment L.C. - 0
L.T. advances on contracts - (1.82)

31/12/07

cash and equiv - 2.37
accounts rec.. - 12.77
inventories - 18.51
deposits - 2.48

equipment L.C. - (1.17)
accounts payable - (2.91)
accrued liabilities - (6.06)
advances on contracts - (23.6)
L.T. equipment L.C. - (1.75)
L.T. advances on contracts - (1.95)

31/03/08

cash and equiv - 2.2
accounts rec.. - 8.74
inventories - 21.19
deposits - 2.00

equipment L.C. - (1.17)
accounts payable - (3.92)
accrued liabilities - (6.34)
advances on contracts - (21.47)
L.T. equipment L.C. - (1.46)
L.T. advances on contracts - (1.77)


cash flows

operational

2006 - 0.48
2007 - (7.27)
2008 Q1 - 0.94

investing

2006 - (9.35)
2007 - 5.88
2008 Q1 - (0.54)


Solar segment

2006
sales - 6.99
oper. P/L - (4.01)
2007
sales - 23.1
oper. P/L - 0.76
2008 Q1
sales - 10.67
oper. P/L - 0.33


we can see good growth.
there are problems with the tight liquidity of the company.
company gets more advances than deposits.
pretty high level of inventory, should work it down.

it is likely that the biomed segment will be sold or some kind of spin off which will improve the bottom line of the company as a whole.

i will continue this later.
]]> http://seekingalpha.com/article/83769-polysilicon-based-pv-manufacturers-clarifying-the-financial-issues?source=feed#comment-201254 201254
SPIR – Spire Corporation
Corporate Profile
Spire Corporation is a Massachusetts corporation incorporated in 1969 with its principal offices located at One Patriots Park, Bedford, Massachusetts.
Spire Corporation is a global solar company providing turnkey production lines and capital equipment to manufacture photovoltaic modules worldwide. Spire Semiconductor provides processing technology for Spire’s silicon solar cell manufacturing lines and produces and sells custom gallium arsenide cells for solar concentrator systems. The Company’s Spire Biomedical subsidiary is a leader in hemodialysis catheters and implantable device processing services.
The Company’s revenues for the past five years have ranged from $15.8 million to $38.4 million.

We have been in the solar business for over 30 years and have been active in research and development in the space, with over $100 million of research and development conducted and 50 patents granted to date, as well as cell and module production, having been a pioneer in the early development of solar technology. This expertise has provided the platform and expertise for our manufacturing equipment. In 2007, we nearly doubled 2006 annual revenues and we believe it is possible to grow revenues significantly again in 2008 based upon current orders as of December 31, 2007. We have equipment deployed in approximately 50 countries and have enjoyed the patronage of some of the world's leading solar manufacturers including First Solar, BP Solar, Kyocera, Sharp, Hitachi, Evergreen and Solaria Energia.



Global Annual Solar Power Installed Capacities (MW)
2006A 1,744
2007E 2,308
2008E 3,071
2009E 4,029
2010E 5,587
2011E 7,630
Global Solar Industry Revenues ($MM)
2006A 10,580
2007E 13,832
2008E 16,333
2009E 18,068
2010E 24,223
2011E 31,463
* Source: Solarbuzz, 2007.



Currently, the bottleneck in the industry lies in polysilicon supply. The large growth in the solar space has resulted in greater demand for polysilicon than available, resulting in considerable increases in price for both long-term contract prices and spot market prices. Polysilicon consumption increased from 5,100 metric tons ("MT") to 20,700MT from 2001 to 2006 respectively, with the top seven polysilicon producers accounting for nearly 96% of the industry's total production capacity, according to Solarbuzz. While the dominant players in the industry have enjoyed increasingly higher margins, the huge demand for polysilicon has attracted numerous new entrants into the market to capitalize on the opportunity. In addition, the dominant players have significantly scaled their production to also meet this demand. As a result, a large influx of polysilicon is forecasted to enter the market in 2009-2010 with incremental capacity being added in 2007 and 2008. With demand met by this time, the next bottleneck in the industry will occur with the turnkey equipment manufacturing needed in the latter stages of the value chain.

there are risks associated with the company which are mainly very low liquidity at this point. off course there are many other risks and anyone can read the 10-K of the company to learn about all the risks the comapny sees at this time.

next post we'll go over some financial data and more general data and try to assume what's the case for and against the company.


]]> Wed, 09 Jul 2008 09:10:33 -0400
SPIR – Spire Corporation
Corporate Profile
Spire Corporation is a Massachusetts corporation incorporated in 1969 with its principal offices located at One Patriots Park, Bedford, Massachusetts.
Spire Corporation is a global solar company providing turnkey production lines and capital equipment to manufacture photovoltaic modules worldwide. Spire Semiconductor provides processing technology for Spire’s silicon solar cell manufacturing lines and produces and sells custom gallium arsenide cells for solar concentrator systems. The Company’s Spire Biomedical subsidiary is a leader in hemodialysis catheters and implantable device processing services.
The Company’s revenues for the past five years have ranged from $15.8 million to $38.4 million.

We have been in the solar business for over 30 years and have been active in research and development in the space, with over $100 million of research and development conducted and 50 patents granted to date, as well as cell and module production, having been a pioneer in the early development of solar technology. This expertise has provided the platform and expertise for our manufacturing equipment. In 2007, we nearly doubled 2006 annual revenues and we believe it is possible to grow revenues significantly again in 2008 based upon current orders as of December 31, 2007. We have equipment deployed in approximately 50 countries and have enjoyed the patronage of some of the world's leading solar manufacturers including First Solar, BP Solar, Kyocera, Sharp, Hitachi, Evergreen and Solaria Energia.



Global Annual Solar Power Installed Capacities (MW)
2006A 1,744
2007E 2,308
2008E 3,071
2009E 4,029
2010E 5,587
2011E 7,630
Global Solar Industry Revenues ($MM)
2006A 10,580
2007E 13,832
2008E 16,333
2009E 18,068
2010E 24,223
2011E 31,463
* Source: Solarbuzz, 2007.



Currently, the bottleneck in the industry lies in polysilicon supply. The large growth in the solar space has resulted in greater demand for polysilicon than available, resulting in considerable increases in price for both long-term contract prices and spot market prices. Polysilicon consumption increased from 5,100 metric tons ("MT") to 20,700MT from 2001 to 2006 respectively, with the top seven polysilicon producers accounting for nearly 96% of the industry's total production capacity, according to Solarbuzz. While the dominant players in the industry have enjoyed increasingly higher margins, the huge demand for polysilicon has attracted numerous new entrants into the market to capitalize on the opportunity. In addition, the dominant players have significantly scaled their production to also meet this demand. As a result, a large influx of polysilicon is forecasted to enter the market in 2009-2010 with incremental capacity being added in 2007 and 2008. With demand met by this time, the next bottleneck in the industry will occur with the turnkey equipment manufacturing needed in the latter stages of the value chain.

there are risks associated with the company which are mainly very low liquidity at this point. off course there are many other risks and anyone can read the 10-K of the company to learn about all the risks the comapny sees at this time.

next post we'll go over some financial data and more general data and try to assume what's the case for and against the company.


]]> http://seekingalpha.com/article/83769-polysilicon-based-pv-manufacturers-clarifying-the-financial-issues?source=feed#comment-201153 201153 i'll try to do that and will remind everyone who will read this that some of what will be written will be facts from data that is open to the public and some will only reflect my take on the data and i'll also try and explain why.
the first step will be the easy one as i'll try and explain why i like SPIR better than the rest.
i'll post it during today at some point.
it is important to say that there might be better possible returns on other companies but when i add the different kind of risks that there are (emphasizing I as it is my opinion) for the players in the industry i think the company offers good reward with less risk than many others.
anyway i'll post it later today.
i'll try and go over the rest asap]]> Wed, 09 Jul 2008 05:20:10 -0400 i'll try to do that and will remind everyone who will read this that some of what will be written will be facts from data that is open to the public and some will only reflect my take on the data and i'll also try and explain why.
the first step will be the easy one as i'll try and explain why i like SPIR better than the rest.
i'll post it during today at some point.
it is important to say that there might be better possible returns on other companies but when i add the different kind of risks that there are (emphasizing I as it is my opinion) for the players in the industry i think the company offers good reward with less risk than many others.
anyway i'll post it later today.
i'll try and go over the rest asap]]> http://seekingalpha.com/article/83769-polysilicon-based-pv-manufacturers-clarifying-the-financial-issues?source=feed#comment-200227 200227 PWE looking good
just wanted to ask why do you think they blow out estimates?
thanks]]> Mon, 07 Jul 2008 19:13:08 -0400 PWE looking good
just wanted to ask why do you think they blow out estimates?
thanks]]> http://seekingalpha.com/article/83769-polysilicon-based-pv-manufacturers-clarifying-the-financial-issues?source=feed#comment-200225 200225
first i want to apologize since i didn't see the link at the bottom.
if i agree or disagree is irrelevant since now i know who said what and i have the tools to evaluate the data by myself (regarding pichel we all know his views and his track record, but still we need to check what he says and make a decision)

please accept the apology and thanks for the data

:)]]> Mon, 07 Jul 2008 19:04:56 -0400
first i want to apologize since i didn't see the link at the bottom.
if i agree or disagree is irrelevant since now i know who said what and i have the tools to evaluate the data by myself (regarding pichel we all know his views and his track record, but still we need to check what he says and make a decision)

please accept the apology and thanks for the data

:)]]>