The demand for solar panels has First Solar (Nasdaq:FSLR) entering into an expansion phase, with new plants planned for in the U.S. and Vietnam.
First Solar spokesman Alan Bernheimer said, "We are sold out. Basically demand exceeds our manufacturing capacity to supply."
This and other recent expansions will basically double the production capacity of the company.
In 2012 First Solar should be able to produce over 2.7 gigawatts.
Each new plant should eventually employ about 600 workers each.
With their highest demand in Asia and the U.S., First Solar wants to build the facilities close to their top markets. Vietnam is a target because of their solar resources, surpassing China and India as the desired location.
It is thought the U.S. plant will be located in the American southwest, as that's where their largest domestic markets are located.
Showing posts with label Solar Power. Show all posts
Showing posts with label Solar Power. Show all posts
Friday, October 22, 2010
Monday, October 4, 2010
JA Solar (Nasdaq:JASO) Downgraded by Auriga
Citing valuation, Auriga downgraded JA Solar (Nasdaq:JASO) from "Buy" to "Hold."
There has been a mixed response from a number of analysts over the solar industry, as there is a growing demand for the product, but the margins have been under pressure, and valuations coming in at pretty high levels.
"With shares of JASO trading meaningfully above our price target, we find it judicious to downgrade our rating to Hold. Long-term investors may still find further upside to the shares as we assign a below-average P/E of just 8x, given JASO's lack of vertical integration within the solar supply chain, while short-term investors should find the current price level attractive to recognize profits. We recognize that industry fundamentals remain strong, and that JASO will likely print Q3 results ahead of consensus estimates, however; our price target uses our 2011 EPS estimate, which we are unable to meaningfully raise at this time," said Auriga.
Earnings season will help establish whether or not this is really a sustainable bull run in the solar sector. If margins are able to hold as revenue climbs, it'll be a good sign for the industry and investors.
Some believe the valuations of many of the solar companies are high, and there isn't a lot of room to move up, as in the case of JA Solar.
JA closed Friday at $8.68, dropping $0.65, or 6.97 percent. Auriga has a price target of $8 on the firm.
There has been a mixed response from a number of analysts over the solar industry, as there is a growing demand for the product, but the margins have been under pressure, and valuations coming in at pretty high levels.
"With shares of JASO trading meaningfully above our price target, we find it judicious to downgrade our rating to Hold. Long-term investors may still find further upside to the shares as we assign a below-average P/E of just 8x, given JASO's lack of vertical integration within the solar supply chain, while short-term investors should find the current price level attractive to recognize profits. We recognize that industry fundamentals remain strong, and that JASO will likely print Q3 results ahead of consensus estimates, however; our price target uses our 2011 EPS estimate, which we are unable to meaningfully raise at this time," said Auriga.
Earnings season will help establish whether or not this is really a sustainable bull run in the solar sector. If margins are able to hold as revenue climbs, it'll be a good sign for the industry and investors.
Some believe the valuations of many of the solar companies are high, and there isn't a lot of room to move up, as in the case of JA Solar.
JA closed Friday at $8.68, dropping $0.65, or 6.97 percent. Auriga has a price target of $8 on the firm.
Thursday, September 30, 2010
Yingli Green Energy (NYSE:YGE) Gaining Favor
Yingli Green Energy (NYSE:YGE) is becoming one of the favorite picks of analysts covering the solar sector, will sales estimated to increase to somewhere around $1.6 billion.
The solar module supplier has been gaining market share because of its low costs, and they're positioned to continue on gaining share.
For 2010, sales are projected to increase by over 50 percent, with consensus estimates they'll grow 11 percent more on top of that in 2011. But with prices no longer dropping, they may perform far better than that.
Volume for Yingli Wednesday soared to far over double the usual 3-month average of just over 3 million, rising to 7,178,121 million on the day.
The solar module supplier has been gaining market share because of its low costs, and they're positioned to continue on gaining share.
For 2010, sales are projected to increase by over 50 percent, with consensus estimates they'll grow 11 percent more on top of that in 2011. But with prices no longer dropping, they may perform far better than that.
Volume for Yingli Wednesday soared to far over double the usual 3-month average of just over 3 million, rising to 7,178,121 million on the day.
Thursday, August 26, 2010
HSBC (NYSE:HBC) Downgrades Trina Solar (NYSE:TSL)
Although some of the solar companies have given optimistic guidance after their recent quarterly reports, specifically in reference to growth, companies like Trina Solar (NYSE:TSL), and others, show there is a strong weakness in margins, and that will continue to weight down the solar sector, and consequently, HSBC (NYSE:HBC) downgraded them from "Overweight" to "Neutral."
The price target was also lowered from $31 to $27.
Even with the downgrade and lowering of the price target, it does give room for some growth for Trina.
It seems this is a response to the aggressive expansion guidance in light of pressured margins, which of course could crush earnings in the industry.
Almost all the major solar competitors said the same thing, seeming to indicate they're worried and concerned about the economic conditions, but are ignoring them and pushing forward, based on demand, according to the companies.
The result will almost assuredly be consolidation, as these companies aren't in position to expand in a low margin atmosphere, and some of them will be weakened going forward, preparing the way for some to be taken over.
The price target was also lowered from $31 to $27.
Even with the downgrade and lowering of the price target, it does give room for some growth for Trina.
It seems this is a response to the aggressive expansion guidance in light of pressured margins, which of course could crush earnings in the industry.
Almost all the major solar competitors said the same thing, seeming to indicate they're worried and concerned about the economic conditions, but are ignoring them and pushing forward, based on demand, according to the companies.
The result will almost assuredly be consolidation, as these companies aren't in position to expand in a low margin atmosphere, and some of them will be weakened going forward, preparing the way for some to be taken over.
Tuesday, August 24, 2010
First Solar (Nasdaq:FSLR), Suntech (NYSE:STP), Yingli (NYSE:YGE), Trina Solar (NYSE:TSL): Long Struggle Ahead
Major public solar energy companies like First Solar (Nasdaq:FSLR), Suntech Power Holdings (NYSE:STP), Yingli Green Energy (NYSE:YGE) and Trina Solar (NYSE:TSL), and their shareholders, are in for a long, difficult journey, as things could get much worse before they get better, if better can even be defined in the current economic environment.
Even when you take these types of politically correct companies and present them in the most positive light, like many commentators like to do, in the end it's one of the last industries you want to be in if you're looking at making money or conserving your capital.
A lot is being made about some of these companies starting to pare down costs, which is a good thing, but they should have been doing this for a long time, as the cost is high and margins low.
That means the wealthier people in the best of times are the consumers of this energy, and when the economy gives a big hiccup like it has been, with little positive outlook in the near future, solar is looked upon as exotic, rather than alternative energy, and those who invest as a support to the industry aren't going to lose their capital in that pursuit.
Even the companies, when they enjoy solid margins, like Yingli did recently, still lost money, as they paid down debt and lost on derivatives.
When you have the growing revenue like these companies have, and they continue to lose money, it's obvious the industry isn't sustainable, and like it or not, everyone needs to take a second look at it, and very carefully at that.
Talk of increased demand is meaningless if the supply of that demand isn't profitable. After all, anyone can sell a product at a loss. How hard is that?
No matter how some supporters want to spin the industry, it's dead in the water right now, and even though most of the above companies are going to push out revenue in an attempt to look like they're growing, the bottom line is still the bottom line, and if they can't do it at a profit, they're in for a long struggle, if they survive at all.
Even when you take these types of politically correct companies and present them in the most positive light, like many commentators like to do, in the end it's one of the last industries you want to be in if you're looking at making money or conserving your capital.
A lot is being made about some of these companies starting to pare down costs, which is a good thing, but they should have been doing this for a long time, as the cost is high and margins low.
That means the wealthier people in the best of times are the consumers of this energy, and when the economy gives a big hiccup like it has been, with little positive outlook in the near future, solar is looked upon as exotic, rather than alternative energy, and those who invest as a support to the industry aren't going to lose their capital in that pursuit.
Even the companies, when they enjoy solid margins, like Yingli did recently, still lost money, as they paid down debt and lost on derivatives.
When you have the growing revenue like these companies have, and they continue to lose money, it's obvious the industry isn't sustainable, and like it or not, everyone needs to take a second look at it, and very carefully at that.
Talk of increased demand is meaningless if the supply of that demand isn't profitable. After all, anyone can sell a product at a loss. How hard is that?
No matter how some supporters want to spin the industry, it's dead in the water right now, and even though most of the above companies are going to push out revenue in an attempt to look like they're growing, the bottom line is still the bottom line, and if they can't do it at a profit, they're in for a long struggle, if they survive at all.
Monday, March 29, 2010
BP (NYSE: BP) and Renewable-Energy Hoax
Solar Energy Stimulus Spending Fiasco
With the shutdown of the solar panel manufacturing plant in Frederick, Maryland, it put the spotlight on the complete hoax behind the Obama administration assertion it was going to create 700,000 renewable-energy jobs with its $80 billion in stimulus spent on the sector.
Although the Obama administration may be creating renewable-energy jobs, those jobs are primarily located in Asian countries like China and India, not in the United States. Thanks Obama for spending our tax dollars on foreign job creation; tax dollars we don't have to spend.
In his usual cluelessness, Vice President Joe Biden said the $80 billion stimulus package was creating “unprecedented growth” in the solar and wind industries.
What is happening is companies in the U.S. are receiving funds to create jobs here, while expanding exponentially in other countries.
For example, First Solar, based in Tempe, Arizona received $16.3 million in taxpayer dollars for the purpose of hiring 200 people at a plant in Ohio. But in fact, just over 70 percent of their hiring will be in Malaysia.
U.S. Suntech Power Holdings Co. received $2.1 million to put together solar panels in Arizona, but they will hire about 11,000 people in China to build them.
This isn't saying they're taking the money and running, what it's saying it they're getting the money with the thought they were hiring in the U.S., when they really never had the intentions of doing it over the long term, but were committed to Asia all along.
As the closure in Maryland shows, U.S. companies can't compete in this area, so throwing money at the industry was never going to create jobs, but probably was just another way to shore up companies in the short term so they could survive long enough to expand into Asia.
If that's not the case, then someone will have to explain how so many companies missed their projections in how many jobs it would create for the long term. Not all of these and other could be that stupid in business practices.
This is a complete hoax, and again, there's no way the government couldn't have known this was the case, unless the people involved are so inept they are ignorant. What ruined their plans I think is the quickness in which the weakness of the idea failed. It wouldn't have been noticed as much if it had been a couple of years out. Now the U.S. government needs to answer on their wasteful spending for an industry that never had a chance in America.
With the shutdown of the solar panel manufacturing plant in Frederick, Maryland, it put the spotlight on the complete hoax behind the Obama administration assertion it was going to create 700,000 renewable-energy jobs with its $80 billion in stimulus spent on the sector.
Although the Obama administration may be creating renewable-energy jobs, those jobs are primarily located in Asian countries like China and India, not in the United States. Thanks Obama for spending our tax dollars on foreign job creation; tax dollars we don't have to spend.
In his usual cluelessness, Vice President Joe Biden said the $80 billion stimulus package was creating “unprecedented growth” in the solar and wind industries.
What is happening is companies in the U.S. are receiving funds to create jobs here, while expanding exponentially in other countries.
For example, First Solar, based in Tempe, Arizona received $16.3 million in taxpayer dollars for the purpose of hiring 200 people at a plant in Ohio. But in fact, just over 70 percent of their hiring will be in Malaysia.
U.S. Suntech Power Holdings Co. received $2.1 million to put together solar panels in Arizona, but they will hire about 11,000 people in China to build them.
This isn't saying they're taking the money and running, what it's saying it they're getting the money with the thought they were hiring in the U.S., when they really never had the intentions of doing it over the long term, but were committed to Asia all along.
As the closure in Maryland shows, U.S. companies can't compete in this area, so throwing money at the industry was never going to create jobs, but probably was just another way to shore up companies in the short term so they could survive long enough to expand into Asia.
If that's not the case, then someone will have to explain how so many companies missed their projections in how many jobs it would create for the long term. Not all of these and other could be that stupid in business practices.
This is a complete hoax, and again, there's no way the government couldn't have known this was the case, unless the people involved are so inept they are ignorant. What ruined their plans I think is the quickness in which the weakness of the idea failed. It wouldn't have been noticed as much if it had been a couple of years out. Now the U.S. government needs to answer on their wasteful spending for an industry that never had a chance in America.
Thursday, March 18, 2010
Alcoa (NYSE: AA) Testing Aluminum Solar Power Mirrors
Alcoa Testing Aluminum Mirrors for Solar Power
Alcoa (NYSE: AA) is working with the National Renewable Energy Lab in Colorado to test how mirrors made with aluminum will work in place of glass to generate solar power.
The two entities are testing how aluminum mirror collect energy outdoors, with results from the experiments not too far off, with expectations they'll be released in the second quarter.
Over the long haul. Alcoa is participating in the experiment because they think aluminium will last longer and be more cost-effective if it collects energy efficiently.
Alcoa (NYSE: AA) is working with the National Renewable Energy Lab in Colorado to test how mirrors made with aluminum will work in place of glass to generate solar power.
The two entities are testing how aluminum mirror collect energy outdoors, with results from the experiments not too far off, with expectations they'll be released in the second quarter.
Over the long haul. Alcoa is participating in the experiment because they think aluminium will last longer and be more cost-effective if it collects energy efficiently.
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