Thursday, June 4, 2009

ESLR: Whats for future

Hits:

1. The growth potential of the solar industry as a whole and ESLR in particular with contractual backlog is the selling point (In billions of dollar as of today).

2. The company's cost of debt remained within a relatively narrow range of 8.9% to 10.1% over this multi-year period.

3. ROE is expected to improve partially in 2009 with an all-around development precipitating through by higher online capacity.

Miss:

1. Continious near-term earnings losses due to high start-up costs, significant capital expenditures, oversupply of solar modules, absence of deep pockets unlike its peers and earnings-dilutive stock issuances may present risks to the near-term share price upside potential.

2. From 2003 through 2008, the company had recorded net earnings losses and stockholders suffered from negative annual returns-on-equity (ROE).

Source: http://www.zacks.com/stock/news/20633/Evergreen+Solar+In+Depth

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