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Non-Tech : Alternative energy -- Ignore unavailable to you. Want to Upgrade?

To: Jacob Snyder who wrote (8800)	8/12/2010 6:23:01 PM
From: Jacob Snyder	Read Replies (2) \| Respond to of 16955

SPWRA 2Q10 results: -0.06 EPS GAAP; +0.15 non-GAAP 23% gross margin GAAP 26% gross margin non-GAAP (I can't recall anyone else reporting non-GAAP gross margins. Next, they'll be reporting non-GAAP revenue, and non-GAAP stock prices.) 994M$ LT debt, plus "liabilities of discontinued operations" 166M$. From the conference call: "SunPower had $737 million in cash and investments on our balance sheet." (But 383M$ in cash and equivalents is the real number, since the rest is restricted cash. Among the big solars, only LDK has a worse balance sheet.) ...strong demand in all geographies and market segments. We were sold out in Q2, and are fully allocated for the balance of 2010. We’re also seeing strong bookings going into 2011...our Q1 2011 bookings are at the best levels in two years. Guidance: 0.25-0.55 GAAP EPS 2010 non-GAAP EPS $1.35-1.65, which excludes failed investments sales 2010 2-2.25B$ gross margin GAAP 2010 18-20% (non-GAAP 20-22%) Looking to Q4 2010, when compared to a conventional (c-Si) 14% panel, we expect our efficiency adjusted cost per watt at the panel level to be $1.36 per watt, and our Q4 2011 cost per watt will be $1.08. (my comment: 2Q10 manufacturing costs were not given. Instead, they gave hopeful "adjusted" predictions for the future.) ...the industry has been in allocation. That is, all of this supply was allocated by the manufacturers, and it was the sellers market. We don’t see that continuing over the long-term however. In particular, we see new manufacturing capacity that is starting to catch up to demand. As early as next year, we’ll start to see a transition to a buyers market. investors.sunpowercorp.com seekingalpha.com PE = 31 = 12.39/0.40, using midpoint of GAAP 2010 EPS. Way too high. Manufacturing cost/watt 4Q09: $1.91 actual $1.47 "Efficiency Adjusted" versus c-Si 14% panels $1.01 "Efficiency Adjusted" versus Thin film 11% panels Even if I accept their "efficiency adjustment", they are still behind where FSLR, TSL, and YGE were at end-2009. And the big Chinese solars are producing at 17-18%, not 14% efficiency. That comment about "transition to a buyers market" is ominous.

To: Jacob Snyder who wrote (8800)	8/12/2010 9:57:12 PM
From: Triffin	Read Replies (1) \| Respond to of 16955

RI approves wind farm project .. === WARWICK, R.I. — The Rhode Island Public Utilities Commission on Wednesday approved a power purchase agreement for a proposed wind farm off the coast of Block Island, ruling over the objection of critics who slammed the arrangement as a sweetheart deal meant to benefit one developer. Attorney General Patrick Lynch vowed to appeal the decision to the state Supreme Court, saying in a statement that the deal makes ratepayers buy "grossly overpriced electricity." The agreement between Deepwater Wind, LLC, a New Jersey-based developer, and National Grid, the state's dominant utility, involves a proposed eight-turbine pilot project connected by a transmission cable to the mainland. The three-member commission, a quasi-judicial body, approved the agreement after weighing economic and environmental benefits and whether the terms were reasonable for ratepayers. The 20-year agreement calls for National Grid to buy the energy generated from the wind farm at 24.4 cents per kilowatt hour. Deepwater Wind CEO Bill Moore said in a statement that the company was pleased with the decision, which he said solidifies "Rhode Island's leadership position in offshore wind development." The commission unanimously agreed that wind energy could reap an environmental benefit but split 2-1 on other issues. Commissioner Mary Bray repeatedly voiced skepticism, saying the agreement would prove a long-term detriment to the economy by hurting ratepayers and small businesses that are already struggling. "Would any reasonable person invest a substantial amount of money into something they know will at best cost three times what they will possibly get out of it?" Bray asked. "That is what we have here." The commission in March rejected a similar agreement as too costly for ratepayers. ==== Don't know wether to laugh or cry at the terms of this deal .. Triff ..