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Technology Stocks : Energy Conversion Devices -- Ignore unavailable to you. Want to Upgrade?


To: Krowbar who wrote (7403)11/10/2003 1:09:52 PM
From: jacq  Read Replies (1) | Respond to of 8393
 
Institutions and most investors like companies that are easy to understand.
The more layers of different ideas, different business plans you have the less of a market multiple you will have. To unlock value in a stock many companies have sold off divisions, or set them up as unique entities.

It is just so much easier for everyone to understand. We have a nice little solar panel plant in Rochester Hills. Once it ramps up to full production it should make money. If it takes another year to get there so be it. People can wait for a year. If the time comes when It is running at full production and the joint is hopping. The solar company can then issue more shares for expansion purposes. Investors can buy the stock for their own private reasons. If they like solar because it is so clean and green they might be willing to take a slightly lower return just so they can be part of an historic world changing technology. If it is making a good return on equity however other people would be very interested in the company for entirely different motivations.

The same goes for the battery business, the memory business, and the fuel cell business.