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Chinese Government Offers Incentive for Solar Mergers

Gosh! Promoting rumour is not going to give you any credibility Ucilia. Digitime did not quote any source maybe because they have none, in which case this is just a rumour. I hope you think big and be creative, and not just follow others. This is from an older guy who has "been there done that". Think BIG for your own good. Be creative to be someone. Disclosure: I own many solars including all those named here except KWT.

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
News, chart, profile, more
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?

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?

First Solar and Solarfun May Defy Short-Term Weakness in Solar Sector

You say: "China's exports will be largely wiped out if overseas demand diminishes in the coming years". I don't think you know what you are talking about if you are serious about that statement. Where would Walmart source their products if China stops exporting? How many countries have you been to lately and did you notice how pervasive Made in China products are even in Asia/Africa? Who will replace those products that provide the best price/value ratios? Wiping out China's export is not easily achievable even if you wish and pray for it to happen. Slowdown from recent double digit growth yes, but that will still be growth of say 7% +/-, not a reduction of GDP, not a wipe out. BTW, it is obvious that China will dominate production of PV solar products, nothing would likely stop that from happenning. The best advice would be finding the winners among the Chinese solar names and invest in them rather than bashing them with all types of excuses and analogies.

About the stimulus package, it is new investment that will have a huge multiplier effect on the economy. This is in contrast to the US bailout - which does not add too much new investment but use billions to correct past errors. Bailout barely create any growth if at all. New investment does. Thats' a world of difference when looking at the multi-billion dollar US bailout vs China's $580B stimulus plan. Final note: one dollar buys much more in China than in the US, not only when it comes to labor hours but also on other productive factors. Therefore, the $580B in China will definitely have a much larger impact than the same dollars in the US. You can't always measure things in terms of what it means in the USA. Think international.

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.

Semiconductors: Is the Glass Half-Empty or Half-Full?

Did not realize you sold out on LDK which you had written some very good articles before. Also noted you wrote about talking to Jesse who was shorting LDK at the time you were promoting it. Did Jesse convince you that LDK is no longer what you said it was?