Buffett-First Solar Deal Extremely Bullish For Solar Sector
by Clean Energy Intel Nellis Solar Power Plant in the US. Source: Wikimedia Commons The Solar Industry this week received significant support in the purchase by Warren Buffett-controlled MidAmerican Energy Holdings of First Solar's (FSLR) $2bn Topaz Solar Farm in San Luis Obispo County, California. This is a significant show of confidence in the industry from Mr Buffett. Of course, we do not know exactly what Warren Buffett´s utility holding company has paid for the solar project. However, the deal is unquestionably significant in size and scope. What we do know is...
Is The Largest Solar Manufacturer a Bargain?
by Debra Fiakas CFA In the previous post on Canadian Solar (CSIQ: Nasdaq) I suggested a multiple of 10 times the consensus estimate for earnings in 2014 might be a compelling value for the solar module producer. Putting a value on is competitor Yingli Green Energy Holding (YGE: NYSE) is not so easy given the string of losses reported by Yingli. The usual price to earnings multiple cannot be used to value a company swimming in red ink. That leaves the multiple of price to sales. Yingli trades at 0.5 times sales compared to the one-to-one multiple...
Canadian Solar Caps 2013 With Mega-Deals
Doug Young Canadian Solar "caps" 2013 with big solar deals The year 2013 will go down as a major turning point for China’s solar panel makers, with some names emerging as new sector leaders after a prolonged downturn while others quietly disappeared. The latter category saw former leader Suntech (OTC: STPFQ) go bankrupt and LDK (NYSE: LDK) quietly sell off many of its assets, while the former category has seen Canadian Solar (Nasdaq: CSIQ) and Shunfeng (HKEx: 1165) emerge as names to watch in the future. Canadian Solar...
Structural and Electrical BOS Components for Solar PV
by Joseph McCabe, PE When investing in the solar industry always remember the old joke: Question: Do you know how to make a small fortune in solar? Answer: Start with a large one. There are exceptions to this rule, like when PowerLight was purchased by SunPower the PowerLight principles came away with valuable SPWRA stock options. Powerlight was a structural balance of systems (BOS) company. They had unique rooftop and single axis tracking structural technologies for photovoltaics (PV), and used that IP to win jobs with various PV module manufacturers, the lowest priced ones at any given time. ...
Suntech Plunges as Reckoning Day Approaches
Doug Young I rarely write about the same company 3 times in a single week, but in this case the developments are coming so quickly at plunging solar panel pioneer Suntech Power (NYSE: STP) that an update to this fast developing story is necessary. Company watchers will know that Friday was the official deadline for Suntech to repay some $540 million in bonds that have just come due. The company has no cash to make that repayment, and earlier this week received a 2 month extension on that deadline from a majority of bondholders. (previous post) Meantime, Chinese...
Solar Parking Developer Envision Solar Now Public (OTCBB:EVSI)
Tom Konrad, CFA One of the best things about Solar Photovoltaics (PV) is that they can be installed close to load but need not take up open space. Now public company Envision specializes on solar shading for parking lots that not only produces power, but also shade where it's needed most. I lived in Tucson, Arizona for two years in the early 2000s. Like everyone who lives in the desert Southwest for any length of time, I became very aware of what would happen if I left my car in an open parking lot for more than...
Clouds Lift For Canadian Solar And Suntech
Doug Young Sun breaking through clouds photo by Tom Konrad Spring is most definitely in the air this week for embattled solar panel makers, with Canadian Solar (Nasdaq: CSIQ) and Shunfeng Photovoltaic (HKEx: 1165) emerging as new sector leaders with different pieces of upbeat news. From my perspective the Canadian Solar news is the most exciting, even though some may say it doesn’t come as a big surprise. The company announced it will post a net profit for the third quarter, becoming the first major solar firm...
Are Solar PV and Wind Incompatible with Nuclear and IGCC?
Paul Denholm, a Senior Analyst at the National Renewable Energy Lab (NREL), sees an upcoming struggle between renewable sources of electricity such as photovoltaics (PV) and wind with low-carbon baseload alternatives for space on the low carbon grid of the future. These baseload alternatives are nuclear and Internal Gasification Combined Cycle coal plants with Carbon Capture and Sequestration (IGCC w/ CCS, refereed to by advocates as "Clean Coal). This may come as a shock to advocates of the idea that Global Warming is such a big problem that we will need all forms of low carbon electricity, because the...
Underpriced JA Solar Becomes More Undervalued
by Shawn Kravetz In the second quarter, solar stocks were impacted by broad energy sector declines on global macroeconomic concerns (most notably Greece and China). This negative sentiment has continued unabated into July exacerbating the disconnect between fundamentals and perceptions. JA Solar (NYSE: JASO) epitomizes this dislocation. We at Esplanade Capital Electron Partners (ECEP) owned JA Solar prior to June 5, believing the company to be worth ~30%+ more than the share price. On June 5, JA Solar received a takeover offer from its Chairman/CEO and parent company at a 20% premium....
Canadian Solar Eyes IPO for Plant-Building Unit
Doug Young Bottom line: Canadian Solar is likely to target at least $100 million in an IPO for its power plant-building unit before year end, which could be an attractive investment alternative for buyers of traditional utility stocks. Just days after announcing big new financing for its unit focused on solar power plant construction, Canadian Solar (Nasdaq: CSIQ) is taking a big new step by disclosing it is preparing an IPO to separately list that unit. The move marks the latest wrinkle in the evolving story for Chinese solar panel manufacturers, which are quickly becoming their own best customers...
Report: Two Solar Technologies That Will Thrive; Two On the Demise
Steve Leone Solar technology photo via BigStock For every revolutionary advance in solar, there are countless evolutionary dead-ends technologies that were well worth exploring, but ones that ultimately failed to live up to the mantra of "cut costs or die." These are the Solyndras of the world. Their science may have raised the bar, but ultimately they were judged by the market, which measures the bar on cost alone. From that perspective, it’s more like a limbo line “How low can you...
Report Suggests Solar at Grid Parity Tipping Point
by Clean Energy Intel A new academic study published last week suggests that solar energy has already reached grid parity in some areas in North America and is therefore poised to move into the mainstream. The study, 'A Review of Solar Photovoltaic Levelized Cost of Electricity', was co-authored by Joshua Pearce of Michigan Technological University and Kadra Branker and Michael Pathak of Queen´s University in Kingston, Ontario. It was published in Renewable and Sustainable Energy Reviews. You can read an abstract of the study here. The study focuses on the assumptions behind many of the past studies of the...
Alternative Energy Companies Posting Large Returns
Alternative energy companies delivered compelling returns for investors. A look at Crystal Equity Research’s ‘indices’ of renewable energy, conservation and environmentally-friendly technology companies found some exceptional price moves. We review five companies here that have experienced top price moves from 52-week lows.
Codexis, Inc. (CDXS: Nasdaq) has gained 257% from its 52-week low. The company won a place in our Beach Boys group through development of proteins for a mix of applications from biocatalysts for industrial enzymes, chemicals and pharmaceuticals. While the company has started generating revenue from its technology, it has yet to post a profit. Codexis delivered a smaller than expected loss in the...
Is SolarCity a Wise Investment?
By Harris Roen As a result of a disappointing earnings release, SolarCity (SCTY) took a shellacking on March 7th. The stock traded down 17.6% to the low of the day, and closed down 14.4%. Still, the stock is up 6.5% for the month, and the savvy investor would have gained 78% if they bought SCTY on the first day of trading in December 2012. So what happened? Moreover, what is the outlook for this innovative solar company? It was no surprise that when SolarCity’s earnings results were released on March 6, the company had...
Commerce Department Finalizes Tariffs on Chinese and Taiwanese Solar Panels
Jennifer Runyon Yesterday the U.S. Department of Commerce announced its final findings in the 3-year long trade war between the U.S. and China. Additional tariffs will be imposed on modules from China and Taiwan. Although this is good news for SolarWorld and other American solar PV manufacturers, many in the U.S. solar industry are not celebrating and the decision is expected to further divide an already shaken solar industry. Specifically, Commerce determined that imports of certain crystalline silicon PV products from China have been sold in the U.S. at dumping margins ranging from 26.71 percent to 165.04...
Recurrent Energy and Jumei: A Tale Of Two Listings
Doug Young Bottom line: Canadian Solar’s Recurrent Energy unit is likely to make its first public filing for a New York IPO in the next 2 weeks and should get a positive reception, while Jumei is likely to quietly de-list from the US in the next 3-4 months. One of the few Chinese IPOs likely to happen in New York this year is moving closer to the launch gate, with word of major new financing for the power plant-building unit of solar panel maker Canadian Solar (Nasdaq: CSIQ). But while that IPO for Recurrent Energy moves closer...
