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Technology Stocks : Energy Conversion Devices
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To: alfranco who wrote (6923)10/3/2002 11:54:57 PM
From: jacq  Read Replies (1) of 8393
 
Thanks for doing the transcript, Al. If ECD Baekart had 16 million sales with 4 megawatts. Then with 30 megawatts they should be able to generate $120 million of sales if they sell everything they produce. If the initial cost was $55 to $84 million. 60 employees times 50,000 or $3 million. depreciation averaging $12 million, utilities at what $4 million. Cost of capital at $6 annually. Selling and administrative costs of $5 million. Total $30 million. Or $1.00 per watt for production costs on a break even basis. To generate a reasonable profit we would probably need to wholesale the product for $1.50 minimum per watt. distribution and installation costs would probably jack the price up to $3.00 per watt to the householder. This is still less than half the cost to the consumer than last year's production. The plant should recover all costs in less than three years. We can either try to maintain a high gross profit i.e $120 million of sales or lower the price point to $1.50 per watt and dominate the market. Either way I think we have a very lovely business about to be born.

Even at a retail price of $1.50 per watt the JV would make $15 million before taxes. Will the JV be able to sell its entire production? At $1.50 per watt it should be a cakewalk.
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