Knobias Clip Report (4-18-2008)
Submitted By Knobias ClipReport
ESLR: Shares Fall on Capital Overhang
Friday’s session saw investors take the bull by the horns and steer it into green following an upbeat report from Citigroup and a complete estimate crushing earnings report by Google. Following the reports, the dollar saw a significant rally while the metals took the day off in their extended run.
Google’s earnings may also lend leverage to Yahoo in its potential takeover by Microsoft. Microsoft had contended that the weakening US economy diminished the value of Yahoo and its online advertising segment. But with Google reporting a sold quarter contradicting Microsoft’s thoughts, the deal may need additional consideration.
In the solar arena, Evergreen Solar, Inc. (ESLR) reported its earnings for the first quarter of 2008. Product sales were $18.3 million for the first quarter of 2008, compared to $16.9 million for the fourth quarter of 2007 and $12.6 million in the first quarter of 2007.
Net loss was $25,000 for the first quarter of 2008, compared to net income of $788,000, or $0.01 per share, for the fourth quarter of 2007 and a net loss of $6.2 million, or $0.09 per share, in the first quarter of 2007.
The Company beat both top and bottom line estimates by analysts by a wide margin yet saw shares fall on a large volume day.
“Despite a difficult winter in our area, we made significant progress on the first 80 MW phase of our Devens facility over the last three months and expect to produce our first panels as scheduled in July.” said Richard M. Feldt, Chairman, President and Chief Executive Officer of Evergreen Solar in the release. We have also begun the 80 MW Phase II expansion of this site which we expect will be operational by early 2009. When Phase I reaches full production capacity of approximately 20 MW per quarter in 2009, we believe that we will achieve operational and bottom line profitability.”
“Late last week, we received the first shipment of the new generation Quad ribbon furnaces that will be used for wafer production at our Devens location and the next EverQ factory, said Feldt. We have been making wafers with these furnaces in our Marlboro pilot facility this week and we are encouraged by the early results. With its simplified wafer growth technique, including more precise thermal control and automated laser cutting technology, we see substantial opportunity to significantly increase cell conversion efficiency and factory-wide yield over the next few years.”
The plunge was said to have been caused by the Company’s cash position. A number of investment firms said the Company would need to raise capital quickly in order to fund the second phase of its Devens production facility. With the overhang of a possible dilutive deal, investors sold their stakes in the name and moved to others in the area. Following a financing deal with favorable terms, the name could be one to watch over the coming month. Investors would be wise to watch.
