number2son

Evergreen Solar's Long Term Outlook

You were right about the dilution. A 20% dilutive stock offering at an historically low price. Common shareholders get the shaft once again.

And then, to add insult to injury, a week later they file SEC documents showing a large distribution of stock awards to the self-same people who have managed the company's stock down to a sub $2 price. It is an outrage that both the management and the BOD is so grossly negligent in their fiduciary responsibilities.

Long term outlook aside, until Feldt and El-Hillow are replaced with competent managers, this company will be a perennial underachiever. That is, if it manages to survive.


On May 04 08:51 AM John Cordes wrote:

> The biggest short term risk to Evergreen is the CEO. If the contract
> backlog was under attack for cancellations and renegotiations, the
> share holders will find out after the fact. Here is someone who
> "lent" Lehman Bros. 30 million shares to short in exchange for an
> extension of credit facility during the worst contraction last year.
> To my knowledge they still have not re-acquired these shares as they
> were denied under bankruptcy proceedings. Evergreen expands capacity
> at Devons by a factor of 5 then turns to China to average down costs.
> It tool a long time for me to see a pattern, but I finally got it.
> Macro conditions can improve dramiatically for solar but Evergreen's
> CEO will find a way to tank the stock. The transparency only comes
> after the fact when the shareholders are screaming for explanations.
> I can also assure you that there will be dillution in order to raise
> the $100million. Conceptually a great business, good proprietary
> technology, good sales force, horrible CEO.

Evergreen Solar: Why This Overlooked Company Is a Good Investment

Good analysis. As I write, the Euro has plunged, adding yet more weight to ESLR's share price. And the Barclays lawsuit, while the absolute right thing to do from management, underscores how little banks care about smaller companies. It also reveals in its bald ugliness, the ethical vacuum at Lehman.

Analysts have also cited oversupply being a risk in 2009. Another risk is an extended recession that leads governments and business to scale back on solar projects.

This pessimism in the markets, this sector, and this company, in particular, is at its highest pitch right now.

The only positive is that Evergreen continues to ramp Devens (they produced a bit over 1MW in the first two weeks of October per their earnings report).

I'm not sure we're at the bottom yet. But here's wishing we're somewhere close.

In the Battle of Best Solar Plays, U.S. Is a Distant Second

Agreed with other comments pointing out this author's poor analysis of Evergreen (ESLR). They are executing precisely against their business plan as they move from a R&D company to state-of-the-art manufacturer of solar panels.

Articles like this illustrate the ongoing confusion about the ongoing confusion among investors about this company. And given their clear guidance, provided must fully recently during their investor-day event and recent earnings call, there is really no excuse for this. Particularly among those who would suppose to write about the company on a widely-read investor web site.