Evergreen Solar Announces $70 Million Sales Agreement with PowerLight Corporation

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evergreen_logo.gifEvergreen Solar Inc (ESLR) announced its largest sales agreement to date. Evergreen Solar and PowerLight Corporation have entered into a definitive agreement for a guaranteed contract which calls for Evergreen Solar to ship a minimum of $70 million of photovoltaic (PV) modules to PowerLight over the next four years. There are defined options which could increase the value of the shipments in the contract to approximately $170 million. Shipments to PowerLight are scheduled to commence during the first half of 2006. [ more ] The stock has gapped up over 14% this morning on this news. Cramer from CNBC has been talking about this stock recently as well, which has also generated some interest in the stock. I spent sometime preparing for the trading day today and took a quick glance at this stock last night. It has a solid uptrend but I felt that it was reaching the top of the current trading range so decided to hold off and wait for it to cycle near the trading range lows to enter the stock. eslr_20051104.gif Today’s news has completely blown past that trading range top. So I will just have to see if it’s too late to jump into this name. The RSI is telling me it’s not currently overbought, but with todays large up move, we are certainly heading into overbought territory. Evergreen will also be announcing their quarterly earnings today at 10AM. You can hear the announcement via the conference call page. Update: ESLR reports a net loss of $0.07 per share, compared with a net loss of $0.10 per share for the third quarter of 2004.

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