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China Solar Companies Slowing Production

Eric, I asked you whether you verified the claims you are quoting. Today YGE specifically released a PR to answer my question to you. Here is what they say: biz.yahoo.com/prnews/0...

Here is what CBS MarketWatch say: LONDON (MarketWatch) -- Yingli Green Energy (YGE:yingli green energy hldg co adr
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Last: 3.86-0.02-0.52%

4:02pm 12/04/2008

YGE 3.86, -0.02, -0.5%) said it reiterating its 2009 outlook, saying it was responding to erroneous news articles saying that photovoltaic module shipments would reach 400 megawatts next year. Yingli Green Energy is estimating between 550 and 600 megawatts of PV module shipments. That's subject to a planned ramp-up during the third quarter. Gross margins will be at least 24%.
Looks like you were one of those spreading the "erroneous news articles saying that photovoltaic module shipments would reach 400 megawatts next year." What else can one expect from Barron's?

Expect Continued Drops in Solar

Intentional or unintentional, you did not mention that LDK beat the street concensus for Q3 (EPS of 71 cents concensus vs. 77 cents actual on US GAAP basis) and they also guided higher for Q4 as well as 2009! Even annualizing 77 cents, LDK is less than a PE of 5 for a company that is growing at several hundred percentages p.a. and almost everyone agree/know that its going to grow even more in dollar sales once the two polysi plants are in production, i.e., 2009. Is it politically wrong for Wall Street to say anything good about solar these days? If not, why is no one saying anything good about LDK's achievement and their guidance? Now I see clearly the market is not efficient regardless of the Nobel Prize that went for the theory.

China Solar Companies Slowing Production

You say: "Yingli (YGE): Postponed or canceled planned expansion from 400 MW to 600 MW. "

YGE said about one month ago:
— Company Confirms Cash Flow Sufficient for Current Capacity Expansion Plans and Working Capital
— Company Confirms No Further Capacity Expansion Plan beyond Its Current Capacity Expansion Plans

BAODING, China, October 8, 2008 - Yingli Green Energy Holding Company Limited (NYSE: YGE) ("Yingli Green Energy" or "the Company"), one of the world's leading vertically integrated photovoltaic ("PV") product manufacturers, today confirmed that it believes its current cash and expected cash flow from operations and committed available lines of credit will be sufficient to meet its currently anticipated cash needs for the remainder of 2008 and for fiscal year 2009, including cash needs for working capital and capital expenditures for the remaining phases of its current capacity expansion plans.

The Company confirms that at September 30, 2008, the Company's cash and cash equivalent totaled approximately RMB 883 million (US$130 million) and that the Company also had approximately RMB 3,723 million (US$548 million) in authorized lines of credit, of which RMB 2,614 million (US$385 million) were drawn down to date. The remaining RMB 1,109 million (US$163 million) in available lines of credit can be used if and when needed. In addition, the Company has also received a letter of intent from a PRC domestic bank relating to a potential line of credit of RMB 500 million (US$74 million).

As previously announced, the Company recently completed installation of an additional 200 MW of annual manufacturing capacity in each of PV polysilicon ingots and wafers, PV cells and PV modules bringing the Company's total annual manufacturing capacity to 400 MW for each stage of the PV value chain. As part of the current capacity expansion plans, the Company also plans to install an additional 200 MW of manufacturing capacity in each of PV polysilicon ingots and wafers, PV cells and PV modules, which is expected to be completed in the third quarter 2009. The Company confirms that it believes its current cash and expected cash flow from operations and committed available lines of credit will be sufficient to cover its capital expenditures to reach its anticipated total manufacturing capacity of 600 MW in 2009 while maintaining adequate working capital to support its operations. In this regard, the Company confirms it has no plans to conduct fund-raising from the capital markets to support this expansion and currently has no plans for further manufacturing capacity expansion beyond 600 MW while it focuses on maximizing utilization of existing capacity and further improving the cost structure of its production. "

They clearly said they are expanding to 600MW and have currently no plan to go beyong 600MW. Why should we believe you more than the company's statement just one month ago.

Eric, did you talk to YGE????? I guess you did not!!!!!! Pls respond and prove me wrong.

China Solar Companies Slowing Production

Eric, I wonder if you checked the validity of the claims made or are you just quoting a report thinking any potential liability for misleading investors would be pushed back to the author of the original paper?

The 'Problem' With Solar Companies is Not Really a Problem

The problem with GS is the same as the problem they claim of the solar companies, i.e., "They need to continue to make money in order to repay their debts. It's that simple."

Who can say that is not also true for GS. If GS stop making money, how can they repay their debt? Based on that, should we all start to short GS? It's becoming ridiculous.