China Sunergy shares went up to $13.78 (up nearly 35% in 2 days) on news that it had secured a 106 ton poly equivalent to 13 MW in cells from a Chinese poly produce for the upcoming year. Again the share price jump seems unwarranted . CSUN is one of the weakest solar companies in my view. It is a pure player cell manufacturer without any of the advantages of vertical integration like Trina or Yingli and none of the technlogical / manufacturing competencies like Suntech or JA Solar. It fell drastically this year to $6 levels after reporting disappointed Q207 results. I think this will be one of the first companies to go belly up once the solar industry goes into a period of oversupply. Though Company will generate strong sales this year $240mm and even in the next , it will hardly earn any profits given its lack of any competetive advantage and high cost of raw materials .Would be good to exit the company at these levels .
LDK story gets spicier by the day with a class action lawsuit being filed and another cell contract deal being signed . Critical thing for the company is to be able to deliver on its contract and execute on its expansion. The inventory issue is too much over hyped and will continue like a dark cloud over the stock price till the dust clears and the independent audit comes through
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment