The company reported better revenue and earnings but indicated 10-15% of their base could default. They’re very aggressively continuing to run the business as if there weren’t credit problems in the marketplace – in fact, they’ve loosened their payment terms to 45 days from the prior 10 days. It’s very likely this company will show deteriorating balance sheet statistics over the coming quarters. The stock is perceived as a prime beneficiary of the Obama administration’s well-known green-lean. Guidance was lowered to 1.8 – 1.9 billion from the prior 2.0 – 2.1 billion. I should have written this up yesterday but I was lazy and I don’t get paid to do this so there.
I expected to post a series of charts on the solar stocks suggesting that ENER, SPWRA and FSLR are all trading on the brink of important technical levels that must not be violated. The set of lines in this chart surprised me and point to the low 40s. Fundamental valuation would dictate that to be pretty much impossible unless something changes dramatically in their business or perceived accounting controls.