Ascent Solar: Time to Shine

by: Pitbull Trading

I think that ASTI is poised to make a strong run and hold above the $5.00 level in the near future, and has many positive developments in the future that should sustain the rally.

Ascent Solar Technologies, Inc. announced that it has unveiled its FlexPower line of products. The FlexPower class of modules, which includes Light, Mobile and Extreme, carries an industry power to weight ratio, achieves the highest power density of any flexible product currently available in the market and provides a unique form-fit capability. (Tues, October 27th, 2009)

ASTI is a high-tech solar company focused on cutting edge solar technologies, and is working closely with the military to develop these new technologies. Many of the executives of the company hold doctorates and have extensive experience in related industries.

About ASTI: Ascent Solar Technologies, Inc. is a development-stage company formed to commercialize flexible photovoltaic (PV) modules using a technology. The Company’s manufacturing process deposits multiple layers of materials, including a thin film of copper-indium-gallium-diselenide (CIGS) semiconductor material, on a flexible, lightweight, plastic substrate and then laser patterns the layers to create interconnected PV cells, or PV modules, in a process known as monolithic integration. The thin-film PV modules require less than 1% of the semiconductor material to achieve the same power output as a c-Si-based PV device.

One reason for the recent sell-off could have been this announcement of a private placement:

Ascent Solar Technologies, Inc. announced that it has closed its previously announced public offering of approximately 4.6 million shares of common stock, as well as its concurrent private placement of approximately 769,000 shares of common stock to Norsk Hydro Produksjon AS, its largest shareholder, both at a price of $6.50 per share. Ascent Solar received net proceeds, after offering expenses and underwriting discounts and commissions, of approximately $32.9 million. Ascent Solar expects to use the net proceeds from the offering for expansion of Ascent Solar's rated production capacity and for general corporate purposes. Barclays Capital Inc. was the sole book running manager of the offering. (Tues, October 6th, 2009)

I have a feeling that Norsk Hydro Prouksjon AS (OTCQX:NHYDY), the largest shareholder of ASTI, has a closer look at the books and the future prospects of ASTI than the average Joe. The fact that they put 33 million dollars at stake with ASTI at a price of $6.50 tells me that they are confident about the future. The fact that they state they plan to use the money to ramp-up production capacity is also a tell that they are serious about getting revenues in the near future. I think this is an opportunity for the ordinary investor to get a much better entry than the institutional owners because of a temporary lag in the solar sector.

If you believe, as I do, that with worldwide energy consumption growing at a rabid pace over the next 20 years there will have to be multiple solutions to meet the new demand, then solar is bound to be a winner. I think that this company can very well be considered best of breed in the future, competing with FSLR, and is worth giving a shot.

Disclosure: Long ASTI

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