Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : SunPower Announces Initial Public Offering SPWR -- Ignore unavailable to you. Want to Upgrade?

To: Daniel Simon who wrote (134)	10/20/2008 11:58:52 PM
From: Eric	Read Replies (1) \| Respond to of 196

October 20, 2008, 2:15 pm SunPower Names Utility Exec CFO; Friedman, Billings Ups Estimates But Oversupply Looms Posted by Tiernan Ray Solar panel module producer SunPower (SPWRA) today announced it has named electric utility veteran Dennis V. Arriola as its chief financial officer. Arriola was previously senior vice president and CFO at San Diego Gas & Electric and Southern California Gas Co. One imagines the appointment will give SunPower connections with utilities and important insight into how they plan to use renewable energy sources. Arriola is quoted in the press release thusly: “The power industry is in the process of transforming to address fuel price volatility, supply reliability and climate change. Solar PV power is an attractive retail and wholesale peaking power resource because it can be sited anywhere, at any scale and is fast to market.” Meantime, Friedman, Billings, Ramsey analyst Mehdi Hosseini today raised his estimates for this year and next for SunPower, while offering an ominous expectation for an oversupply situation in the first quarter of next year. Following a positive Q3 earnings announcement by SunPower on Oct. 16, Hosseini is raising his 2008 sales and profit estimates (excluding some costs) to $1.47 billion and $2.39 per share, from $1.44 billion and $2.36, and raised his 2009 sales estimate to $2.12 billion from $2.11, while maintaining his EPS estimate — again, excluding some costs — of $3.50. Hosseini’s estimates are above the consensus $1.43 billion and $2.33 for this year, and $2.05 billion for next year. Hosseini maintains a “Market Perform” rating on the stock and a price target of $65. You’ll recall that on Friday, Citigroup’s Timothy Arcuri and Merrill Lynch’s Mark Heller both downgraded SunPower on concerns that a stagnating economy could leave solar panel modules unsold next year. Hosseini, while believing SunPower will fair much better than some peers, offers the same concern. “[W]e expect the industry to hit a demand “air pocket” by 1Q09,” he writes, “driven by capacity increases exceeding the demand increase.” He thinks investors understand that, but that management at solar companies has yet to come clean, and “cell/module manufacturers have yet to capitulate, accept industry fundamentals, and set realistic expectations. We expect such changes to occur by the time cell/module manufacturers report 4Q08 results in early next year.” Incidentally, Hosseini just upgraded SunPower less than a week ago. SunPower shares today are up $4.44, or 10%, at $51.30 blogs.barrons.com