dicki31785

Solarfun Down Despite Reporting a Strong Quarter

Well I would actually say their is numerous reason for the stockprice downturn....first they have only presold 100 MW of the expected 272.5 MW output in 2009...and people were complaining that TSL only pre-sold 60% so far so what do they say to 36.6%....secondly if the module prices fall more than 10% solf is going to get crushed(though i do not believe in that scenario since I am a solar bull)...at last I didn't understand why they put so much money in ramping the cell capacity...It appears at year end they will have 360 MW capacity....and adding on 4 more lines each being 30 MW per line...I think they should have concentrated on wafer capacity(as this is one of their two bottlenecks in the supply chain the other being poly)...and maybe only ramp two lines of cell capacity....and invest the rest in wafer capacity...

On the positive side it doesn't look like their capex next year will force solf to tap the stock market for cash, I think they can do it all by debt...and obviously the Q-Cells deal was quiet good....I think SOLF becomes interesting somewhere in the area of 12-15 depending on market conditions...with kind regards CW

Long ABX, AUY, CSIQ, ESLR, SSL, TSL

PS So if SOLF is undervalued what is TSL???