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.