Tag Archives: Alternative Energy

Business, Finance, Occupation & Industry

It's Official: Suntech Receives Notice of Default

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By 24/7 Wall St.

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China’s one-time leader in the production of solar panels has officially been notified by its trustee that the company is in default on a $541 million bond payment and that payment has been accelerated. Suntech Power Holding Co. Ltd. (NYSE: STP) has teetered precariously on the brink of default for the past week and now the firm has gotten the final push.

As we noted earlier this morning, this could lead to a forced bankruptcy of the solar panel maker. But that has not happen yet, according to Suntech’s announcement:

As previously announced, Suntech has entered into a forbearance agreement with holders of over 60% of the Notes, one of the terms of which is that the forbearing Note holders will cooperate with Suntech in addressing certain legal proceedings that may be initiated against it. Suntech understands that those Note holders have also requested the trustee under the Notes not to take any further action as consensual restructuring discussions continue. Suntech is thus far unaware of any legal proceedings initiated by any Note holders against the Company. Suntech intends to continue to engage with holders of the Notes and other lenders with a view to achieving a consensual restructuring.

It is pretty clear that neither the Chinese central government nor the local government is about to ride to Suntech’s rescue. Postponing the inevitable for another two months, as some noteholders have agreed to do, is not likely to lead to a different outcome.

Filed under: 24/7 Wall St. Wire, Alternative Energy, Bankruptcy, Bonds, China, Green Biz, Shareholder Issues, Technology Companies Tagged: STP

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Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Suntech Defaults on Bond Payment

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By 24/7 Wall St.

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As expected, Suntech Power Holdings Co. Ltd. (NYSE: STP) failed to make a required $541 million bond repayment scheduled for last Friday. The company claimed last week to have reached forbearance agreements with about 60% of its foreign bondholders, who agreed to give the struggling solar panel maker an additional two months to either pay or renegotiate.

The failure to make Friday’s payment is a default and a bankruptcy filing is a distinct possibility. Bondholders who did not agree to any forbearance are reported to be demanding that the trustee file an involuntary bankruptcy notice. If such a filing should occur, the bankruptcy could be either a Chapter 7 liquidation or a Chapter 11 reorganization. The trustee for the bonds is Wilmington Trust Co. of Wilmington, Delaware.

Suntech is the second-largest Chinese company as measured by revenue listed on U.S. exchanges, and a bankruptcy filing either by or on behalf of Suntech would be the highest visibility bankruptcy by a Chinese firm in many years.

Filed under: 24/7 Wall St. Wire, Alternative Energy, Bankruptcy, Bonds, China, Green Biz Tagged: STP

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Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

The Coming End of Suntech

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By 24/7 Wall St.

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Chinese solar panel maker Suntech Power Holdings Co. Ltd. (NYSE: STP) announced earlier this week that it will close its plant in Arizona on April 3, costing 43 employees their jobs. The cost to Suntech could be much higher — China‘s central government has indicated that it will not rescue the company from an impending bankruptcy that could come as soon as tomorrow, when Suntech could miss a scheduled $541 million payment to bondholders.

In 2011 Suntech became the world’s largest producer of solar panels, but the honor associated with that did not last long. Overcapacity in the solar industry caused prices for modules to collapse and, although prices are fairly stable now, inventory write-downs and operating losses have battered the industry.

One potential Suntech rescuer is the municipal government of Wuxi, where the company’s main operations are located. A holding company partly owned by the government could take over Suntech, according to a report in The New York Times.

The local government wants to save the jobs, but the central government is more interested in saving the industry. If that means Suntech has to go, well so be it. The Wuxi government is not likely to be able to swing a rescue without some help from a large bank, and if the central government does not want to save Suntech, then no such bank is likely to turn up.

Suntech could get a reprieve from bondholders on tomorrow’s repayment, but that will only be a short-term solution. Nothing the company can do in the next two or three months can change the writing on the wall. Suntech will either be under new management or out of business.

Filed under: 24/7 Wall St. Wire, Alternative Energy, Bankruptcy, Green Biz, International Markets, Technology Companies Tagged: STP

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Source: FULL ARTICLE at DailyFinance

Science & Technology

Another Tough Year for Canadian Solar

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By 24/7 Wall St.

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Canadian Solar Inc. (NASDAQ: CSIQ) reported fourth-quarter and full-year 2012 results before markets opened this morning.

For the fourth quarter, the solar panel maker reported an adjusted diluted earnings per share (EPS) loss of $1.01. In the same period a year ago, Canadian Solar reported a net loss of $1.00 per share on revenue of $326 million. Fourth-quarter results also compare to the Thomson Reuters consensus estimates for a net loss of $0.95 per share and $318.53 million in revenue.

For the full year, the company reported an adjusted EPS loss of $3.04 on revenues of $1.3 billion. The consensus estimates called for a net loss of $2.90 per share on revenues of $1.31 million.

On a GAAP basis, Canadian Solar posted a quarterly net loss of $2.43 per share, compared with a loss of $1.01 a year ago. The company wrote down $31.24 million in bad debt during the fourth quarter and reserved about $30 million after an arbitrator ruled for competitor LDK Solar Co. Ltd. (NYSE: LDK) in a dispute between the two Chinese solar makers.

The company’s CEO said:

2012 was a difficult year for the entire solar industry. Despite the headwinds, we maintained our practice of balancing the desire to expand with the need for prudent business management and cost control. As a result, Canadian Solar has fared better than most of our competitors. We have further increased our market share, and rapidly established our total solutions business with investments in the mid- and downstream segments.

That the company increased its market share may not be particularly good news for shareholders. The company’s gross margin for 2012 fell from 9.6% a year earlier to 7%. The only good news there is that Canadian Solar did not lose money on every panel it sold. Gross margin improved a bit in the fourth quarter, from 2.2% in the third quarter to 5%.

The company’s first-quarter outlook includes shipments of 290 to 310 megawatts of solar modules with a gross margin of 8% to 10%. For the full year, the company expects to ship 1,600 to 1,800 megawatts, compared with 1,543 megawatts shipped in 2012. The consensus analysts’ estimates for 2013 are EPS of $1.15 on revenue of $1.81 billion.

Shares are down about 5.6% in premarket trading, at $3.52 in a 52-week range of $1.95 to $5.15. Thomson Reuters had a consensus analyst price target of around $5.30 before today’s results were announced.

Filed under: 24/7 Wall St. Wire, Alternative Energy, Earnings, Green Biz, Technology Companies Tagged: CSIQ

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Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Solar Stocks Get a Jolt (TSL, STP, SPWR, FSLR)

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By 24/7 Wall St.

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Analysts at Raymond James raised their ratings on several solar stocks, saying that the risk of owning these stocks is now in balance with the potential reward. The four stocks included in the upgrade from Underperform to Market Perform are Trina Solar Ltd. (NYSE: TSL), Suntech Power Holdings Co. Ltd. (NYSE: STP), SunPower Corp. (NASDAQ: SPWR) and First Solar Inc. (NASDAQ: FSLR).

These stocks have had a decent bounce since the beginning of the year, with SunPower getting the biggest jolt, up more than 138% at its peak in mid-February. Since then, shares have pulled back to a still-respectable year-to-date gain of 121%.

First Solar peaked in at the same time, up about 17% and has since moved steadily down to a year-to-date loss of more than 13%.

Trina Solar peaked in early January, up about 34%, and has trailed downward ever since to lose of about 3%.

And Suntech also peaked in early January, up about 22% and now down about 22%. Suntech has some unique problems, which we covered earlier today.

All except Trina Solar are already trading above their consensus price targets, even with the steep declines since the first of the year. None is a buy-and-hold candidate.

Filed under: 24/7 Wall St. Wire, Alternative Energy, Analyst Calls, Green Biz, Technology Companies Tagged: FSLR, SPWR, STP, TSL

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Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Suntech's Boardroom Turmoil

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By 24/7 Wall St.

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On Monday, the board of directors for Suntech Power Holdings Co. Ltd. (NYSE: STP) removed its founder and executive chairman, Shi Zhenrong, replacing him with another board member, Susan Wang, as executive chairman. Shi retains his board seat, for what that’s now worth.

The former chairman issued a statement last night that the board’s action was “misconceived and unlawful” and, therefore, “invalid and of no effect.” The board of directors issued a statement today saying that it is confident the move is “valid and effective under the law of the Cayman Islands,” where Suntech is incorporated.

Added to this turmoil, Suntech must come up with a way to cover a $541 million convertible bond that comes due next week. The company has not posted a profitable quarter in two years, and no end to that string is in sight. The company really has no way to repay that bond unless the cavalry rides to the rescue.

And if the cavalry does show up, it is pretty certain that Shi will not be among those saved. It was on his watch that Suntech overbuilt production capacity and fell for what the company says is a fraud involving German bonds that has cost it $680 million. Shi was replaced as Suntech’s CEO last August, following disclosure of the bond fiasco.

If Suntech is saved, it will be the Chinese government that rides to the rescue, or one of the local banks that wants to preserve the jobs the company brings to the local economy. Bridge financing could be arranged until the company could get another bond issue together. But it seems unlikely that the former chairman would be asked to stay on after his poor performance to date.

Shares of Suntech are down more than 4% at $1.16, in a 52-week range of $0.71 to $3.68. Most of the other Chinese solar makers are trading up today. Suntech’s problems are its own.

Filed under: 24/7 Wall St. Wire, Alternative Energy, Corporate Governance, Green Biz, Management Change, Shareholder Issues, Technology, Technology Companies Tagged: STP

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Source: FULL ARTICLE at DailyFinance

Science & Technology

Another Bloody Nose for Solar Stocks (YGE, FSLR, GTAT, AMAT, SPWR, WFR, LDK, TSL, JASO, STP)

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By 24/7 Wall St.

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Chinese solar maker Yingli Green Energy Holding Co. Ltd. (NYSE: YGE) reported fourth-quarter and full-year 2012 earnings this morning. Revenues were much better than expected, but earnings remained below estimates. Gross margins came in at -8.5% for the fourth quarter, which was considerably better than the gross margins of -22.7% in the third quarter.

The poor report is rippling through the solar sector today, pulling share prices down for First Solar Inc. (NASDAQ: FSLR), GT Advanced Technologies Inc. (NASDAQ: GTAT) and Applied Materials Inc. (NASDAQ: AMAT). Solar maker SunPower Corp. (NASDAQ: SPWR) fell earlier this morning, but an initiation of the stock with an Outperform rating at Northland Capital has pulled SunPower’s shares up to a small gain. Wafer maker MEMC Electronic Materials Inc. (NYSE: WFR), like SunPower, dived earlier, but has since recovered to post a small gain.

Shares of Yingli are down 4.6% this morning, at $2.29 in a 52-week range of $1.25 to $4.60. Other Chinese solar stocks, like LDK Solar Co. Ltd. (NYSE: LDK), Trina Solar Ltd. (NYSE: TSL), J.A. Solar Holdings Co. Ltd. (NASDAQ: JASO) and Suntech Power Holding Co. Ltd. (NYSE: STP), are trading down from about 1.2% to 3.8% following Yingli’s results.

Filed under: 24/7 Wall St. Wire, Alternative Energy, China, Green Biz, Technology Companies Tagged: AMAT, FSLR, GTAT, JASO, LDK, SPWR, STP, TSL, WFR, YGE

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Source: FULL ARTICLE at DailyFinance

Science & Technology

First Solar Sales Weakness To Drag On Peers

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By 24/7 Wall St.

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First Solar, Inc. (Nasdaq: FSLR) is out with its financial results for the fourth quarter of 2012. The solar PV-panel maker said that its net sales hit a record $1.1 billion in the quarter, but the big problem here is that Thomson Reuters was calling for sales of $1.32 billion. Wall Street does not care if that is a gain of $236 million from the third quarter of 2012 and a gain of $415 million from the fourth quarter of 2011. The comparable non-GAAP earnings came to $2.04 per share for the quarter and $4.90 per share for full-year 2012. Thomson Reuters was calling for $1.76 per share for the quarter and $4.61 per share for the year.

The sales gain was said to be primarily due to increased revenue recognition for the Topaz project and from higher third-party module sales. Cash and Marketable Securities at the end of 2012 came to $1 billion and its cash flow from operations was $328 million in the fourth quarter.

First Solar gave guidance for sales of $650 to $750 million with 25% to 27% gross margin, and earnings were put in a range of $0.70 to $0.90 per share. The estimates from Thomson Reuters are $828.9 million in sales and $0.94 per share in earnings. Other guidance is as follows: OPEX of $90 to $100 million; Operating income of $70 to $100 million; Tax rate between 11% and 13%; Cash flow from Operations of $0 to $100 million; and CAPEX of $80 to $100 million.

Shares of First Solar ran up way too much since the election with gains of 50% before backing off of late. The stock was down 4.2% to $31.36 at the close and the after-hours reaction has shares down over 5% more at $29.55 against a 52-week range of $11.43 to $37.18. The Thomson Reuters consensus price target before the effect of earnings and guidance was $26.45 for First Solar shares.

Solar stocks already saw their great growth and stocks are now a mere fraction of their former highs. It is going to be very difficult for these companies to sell themselves as cheap value stocks.

Filed under: 24/7 Wall St. Wire, Alternative Energy, Earnings, Earnings Warning, Green Biz, Infrastructure, Utilities Tagged: FSLR

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Source: FULL ARTICLE at DailyFinance

Science & Technology

Hopes Dimming for Solar Shares

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By 24/7 Wall St.

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Following today’s dismal report from Trina Solar Ltd. (NYSE: TSL), the entire solar sector is experiencing a sell-off. The only question investors need to ask themselves is whether or not this turn of events was a surprise.

Until the first of the year, Trina and most of the other solar makers were trailing along at anywhere from down 10% to down 75% from year-ago levels. Then, as if by magic, solar stocks turned higher, and short interest declined. As of last night’s closing, SunPower Corp. (NASDAQ: SPWR) shares had more than doubled since January 2nd. LDK Solar Co. Ltd. (NYSE: LTD) was up about 24%, Yingli Green Energy Holdings Co. Ltd. (NYSE: YGE) is up more than 20%, and First Solar Inc. (NASDAQ: FSLR) was up about 6%. Only Suntech Power Holdings Co. Ltd. (NYSE: STP) had not kept pace; even Trina was up about 3% on the year.

At last count, about 30% of First Solar‘s shares are held short, as are nearly 17% of SunPower’s shares. SunPower’s shares have gained the most since earlier this month, when research firm GTM Research predicted U.S. solar installation is on a steady growth path and another report indicated that new methods of financing would also help bolster solar sales.

But this sector is volatile, one might even say whimsical. Whether it’s short covering, or new investors searching for a bottom, or long-time investors who have decided to hold on until they recover at least some of their losses, solar stocks continue to trade heavily. More heavily in fact, than in those bygone days when First Solar peaked above $300 a share, nearly 10 times where it trades today.

No one can possibly think those days are coming back, ever. Right?

Filed under: 24/7 Wall St. Wire, Alternative Energy, Green Biz, Technology Companies Tagged: FSLR, LTD, SPWR, STP, TSL, YGE

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Source: FULL ARTICLE at DailyFinance

Science & Technology

A Big Options Bet That Tesla Gets Cut in Half

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By 24/7 Wall St.

Tesla Model S

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Tesla Motors Inc. (NASDAQ: TSLA) was down big on Thursday after its earnings report. When you consider how small the company is in the grand scheme of things, and when you consider the BofA Merrill Lynch downgrade to Underperform, the reality is that Tesla actually held up better than it could have. What is interesting is that there was a huge bet that Tesla could see its shares cut in half over the next two years.

Options volume can be tricky in many cases. The farther out the expiration date, the higher the premiums generally become. So what if you saw that a bet was made that Tesla’s stock would fall to less than $20, or even to $18, with a time frame of two years?

A whopping 17,742 options contracts traded out in the January 2015 $18 put options. The premium paid was under $3.00 per contract, but investors need to know that the open interest before this was only a few hundred contracts. This was also the largest stock options single strike price trade seen in every single strike price and in every single expiration month up until then.

As far as what this means on a fully leveraged basis, it is huge. A move of more than 17,000 options contracts is a bet of 1.7 million shares on a fully leveraged basis (one contract equals 100 shares). Tesla traded just over 9 million shares on Thursday when shares fell to $35.16 from $38.54, and that appears to be the single largest stock volume trading day in the stock since March of 2011. Yahoo! Finance shows that the average daily stock volume is only 1.445 million shares. Tesla sometimes does not even trade 1 million shares in a day.

This was a serious bet, and with this being so far out of the money, it was unlikely that this was a hedging trade of sorts. At $35.16, Tesla’s 52-week range is $25.52 to $40.00 and its market cap is some $4 billion.

Filed under: 24/7 Wall St. Wire, Active Trader, Alternative Energy, Autos, Green Biz, Options Tagged: TSLA

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Source: FULL ARTICLE at DailyFinance

Science & Technology

Solar PV Growth Stalled in 2012

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By 24/7 Wall St.

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For the first time in a decade, global solar photovoltaic (PV) demand grew by less than 10%. Installations totaled 29,000 megawatts of solar PV in 2012, up just 5% from 27,700 megawatts in 2011. The industry had been hoping for a minimum total of 30,000 megawatts.

Europe remained the largest regional market, taking nearly 16,500 megawatts or 60% of global demand. However the percentage shrank, from 68% in 2011 and 82% in 2010.

Asian nations installed 8,690 megawatts, led by a spurt in Chinese demand in the second half of the year. North America accounted for 3,490 megawatts, with much of the demand coming from California, where renewable portfolio standards and rebates smoothed the path.

The data comes from NPD Group’s Solarbuzz unit, and the company’s senior analyst noted the acute problem for the solar PV makers like First Solar Inc. (NASDAQ: FSLR), SunPower Corp. (NASDAQ: SPWR), and others:

For supply and demand to have been balanced during 2012, end-market demand should have approached the 45 GW level. This is 50% higher than actual PV demand in 2012, and reflects the lack of demand elasticity that characterizes the PV industry today. It also explains why even those companies that gained market-share in 2012 still ended up reporting significant operating losses.

Solarbuzz did not offer a forecast for solar PV installation in 2013, but did say that emerging nations (read “China“) will be “pivotal” to the solar industry’s supply and demand balance.

Filed under: 24/7 Wall St. Wire, Alternative Energy, Green Biz, Technology Companies Tagged: FSLR, SPWR

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Source: FULL ARTICLE at DailyFinance

Science & Technology

Tesla Results Mixed on Lower Shipments

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By 24/7 Wall St.

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Tesla Motors Inc. (NASDAQ: TSLA) reported fourth quarter and full year 2012 earnings after markets closed today. For the quarter, the electric car maker posted an adjusted diluted earnings per share (EPS) loss of $0.65 on revenues of $306 million. In the same period a year ago, the company reported an adjusted EPS loss of $0.69 on revenues of $39.38 million. First-quarter results compare to the Thomson Reuters consensus estimates for an EPS loss of $0.53 and $298.4 million in revenues.

On a GAAP basis, the carmaker lost $0.79 per share, compared with a year-ago quarterly loss of $1.05. For the full year, Tesla’s adjusted EPS loss totaled $3.20 on revenues of $423.26 million. The consensus estimates called for an annual EPS loss of $3.08 on revenues of $402.73 million.

In a letter to shareholders, the company’s CEO and CFO said:

We will also continue to implement production and delivery efficiencies throughout the year. We have already made significant progress this quarter. As a result, we expect to be slightly profitable (excluding only non-cash option and warrant-related expenses) in Q1 2013.

In its outlook, Tesla said it expects to ship about 20,000 Model S sedans in 2013, with about 4,500 units shipped in the current quarter. In the fourth quarter Tesla shipped about 2,400 units, below its estimate of 2,500 to 3,000 units at the end of the prior quarter.

Gross margin rose from a negative 17% in the third quarter to a positive 8% in the fourth quarter, and the company is looking for gross margin in the “mid-teens percentage range” for the current quarter.

Tesla also says it will generate “slightly positive” net income in the first quarter on a non-GAAP basis. The consensus estimate for the current quarter calls for an adjusted EPS loss of $0.17 on revenues of $378.14 million.

Tesla’s shares closed down about 1% today at $38.90 and have lost another 2.3% in after-hours trading, to fall to $38.00 in a 52-week range of $25.52 to $40.00. The consensus target price for the shares was around $42.10 before today’s report.

Filed under: 24/7 Wall St. Wire, Alternative Energy, Autos, Earnings, Green Biz Tagged: featured, TSLA

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Science & Technology

SunPower Fades on Revenues, Guidance

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By 24/7 Wall St.

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SunPower Corp. (NASDAQ: SPWR) reported fourth quarter and full-year 2012 results after the markets closed today. Quarterly adjusted earnings per share (EPS) were $0.18 on revenues of $678.5 million. In the second quarter of 2011, the solar panel maker reported EPS of $0.04 on revenues of $625.3 million. The Thomson Reuters estimates called for EPS of $0.15 and $768.27 million in revenue.

On a GAAP basis, SunPower reported a quarterly EPS loss of $1.22. Adjusted earnings excluded charges, expenses, and adjustments totalling about $179.3 million.

For the full year, SunPower reported EPS of $0.18 on revenues of $2.42 billion compared with prior year EPS of $0.16 on $2.37 billion in revenues. The consensus estimate called for EPS of $0.15 on revenues of $2.6 billion.

The company’s CEO said:

North America remained our most significant market for the quarter as evidenced by our sale of the 579 megawatt (MW) Antelope Valley Solar Projects (AVSP) to MidAmerican Solar, a transaction that further reinforces our strong bankability. … In Asia, we expanded our presence in the Japanese rooftop market as a result of our significant partnerships and signed a joint venture in China to manufacture our SunPower C7 Tracker product for power plant projects. In Europe, industry conditions remain challenging but our cost reduction programs and ability to leverage our existing infrastructure to further evolve our go-to-market strategy with innovative programs will enable us to return to profitability in this region in the second half of 2013.

There have been some signs of life recently in the solar sector, with First Solar Inc. (NASDAQ: FSLR) recently getting an upgrade to buy and China promising to spend more on new solar installations. But 2012 was another tough year for solar makers, with most losing between 22% and 75% of their value in the past 12 months. SunPower managed to eke out a gain of nearly 6% in the same time span.

For the first quarter, SunPower expects to post adjusted EPS of $0.05 to $0.20 on revenues of $475 to $500 million. The consensus estimate calls for an EPS loss of $0.11 on revenues of $544.26 million. For the full year, the consensus estimates call for EPS of $0.14 on revenues of $2.59 billion.

After closing up 0.5% at $8.41 against a 52-week trading range of $3.71 to $9.54, shares have dropped 1.3% to $8.30 in after-hours trading. Thomson Reuters had a consensus analyst price target of around $6.15 before today’s report.

Filed under: 24/7 Wall St. Wire, Alternative Energy, Earnings, Green Biz, Technology Companies Tagged: FSLR, SPWR

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Source: FULL ARTICLE at DailyFinance

Science & Technology

Solar Parts Maker Satcon to Liquidate

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By 24/7 Wall St.

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Solar rooftop installationSatcon Technology Corp., maker of a critical solar panel component called an inverter, filed for bankruptcy protection last October, but the company couldn’t find a buyer and has announced today that it will liquidate its assets. The company’s lender refused to finance the firm beyond tomorrow and Satcon’s board voted today to begin the Chapter 7 liquidation process.

Satcon, along with Enphase Energy Inc. (NASDAQ: ENPH) and Power-One Inc. (NASDAQ: PWER), made the solar inverters that converted direct current to alternating current that enabled the solar-generated electricity to be fed to the grid. Power-One’s inverters are similar to those once made by Satcom, while Enphase specializes in micro-inverters that convert the electricity at the module level instead of the installation level, making the devices cheaper, more efficient, and safer.

Power-One today announced that it had signed a deal with Panasonic to work on grid-connected energy storage systems for sale in the European and U.S. markets. Last week Enphase signed a partnership deal with Australian solar distributor RFI Solar.

The key to success in today’s solar components market is lowering costs. Cell costs have fallen through the floor, and lowering costs for inverters and mounting hardware had to continue to decline if solar installations were to remain competitive. Satcon couldn’t keep up with price cuts and that’s why the company will be in court tomorrow to seek permission for a liquidation.

Filed under: 24/7 Wall St. Wire, Alternative Energy, Bankruptcy, Green Biz, Technology Companies Tagged: ENPH, PWER

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Source: FULL ARTICLE at DailyFinance