AstroPower (NASDAQ: APWR) Makes 4 Year Low OPS Alert
March 4, 2003
AstroPower's shares (Nasdaq: APWR, $5.20) hit a 4-year low of $5.08 on heavy trading volume after the company delayed its previously scheduled March 5, 2003, earnings announcement "pending receipt of confirmation of certain contractual agreements with two government customers". It is highly unusual for a company to delay its earnings announcement for any reason, especially on the day before their scheduled release.
We, at StockDiagnostics.com, suspect that the delay is due to a lot of "gnashing of teeth" going on behind closed doors as AstroPower's management is most likely having difficulties in convincing its auditor, KPMG, that its receivables are legitimate. We again are reiterating our OPS Warning on AstroPower. Its shares should be avoided at any price.
stockdiagnostics.com
AstroPower (NASDAQ:APWR) OPS Alert
March 3, 2003
We are reiterating our OPS Warning for all investors to avoid the shares of AstroPower (NASDAQ:APWR) at any price. See The OPS Newsletter Issue 5. In our opinion, AstroPower, as an alternative energy or solar electricity play that many investors are currently seeking, is a "trap door" since it has generated negative OPS for eight consecutive quarters and for 17 out of its last 20 quarters. The company has also generated negative free cash flow in 19 out of its last 20 quarters. AstroPower is expected to announce its 2002 year end results on March 5, 2003, and barring a miracle we suspect that its announcement may divulge substantial losses that are related to write-downs of its receivables and its inventory. Wall Street research currently has eleven holds and one sell on AstroPower and 253 institutional investors hold 61% of its shares. With a high institutional concentration of its shares and the high probability of a very negative year end report coming we believe that AstroPower's shares may go into the $3 range (new all time lows) within days.
Based on AstroPower's severely negative operating and negative free cash flow, we are projecting that its shares will finish 2003 down at least 70%, or below $1. Also based on our opinion, AstroPower does not have a viable business model and unless it totally overhauls its business model, we believe that the probability is high that it may be out of business by the end of 2003.
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