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To: Jacob Snyder who wrote (11684)	9/10/2011 2:18:04 AM
From: Sam	Respond to of 16955

Maybe this is at least a part of what sent the solar stocks down? China solar module makers to slash quotes by 15% Nuying Huang, Taipei; Jackie Chang, DIGITIMES [Friday 9 September 2011] digitimes.com Price negotiations held during EU PVSEC 2011 have been a battlefield between suppliers and customers. China-based first-tier solar integrated firms have reportedly quoted solar modules at US$1/W for the fourth quarter, a 15% decrease compared to quotes before the exhibition. The objective of the price slash is to increase market share. The price of solar modules from China-based firms before the exhibition was US$1.15-1.20/W. Industry sources pointed out that many solar firms have been suffering losses, hence do not have the ability to follow the low price of US$1/W. The suggested quotes of US$1/W for solar modules can bring price competition in the solar industry to a new level, according to industry sources. Not only solar firms in Europe, US and other regions have the potential to be hurt, a significant number of China-based solar firms will also face a test for survival. Industry observers noted quotes of US$1/W have been considered as reaching grid parity in many regions, which hence might spark a wave of demand for solar products. Taiwan-based solar firms are likely to experience increasing pressure as China-based solar firms have steady control over distribution channels. Industry sources stated many China-based solar firms will likely suffer from this fast and furious slash of quotes. Many small- and medium-size China-based solar firms have products with unstable quality that will slowly be eliminated from the market. Hence, even if the China government provides funds, it is likely that the funds be allocated toward firms with greater potential.

To: Jacob Snyder who wrote (11684)	9/19/2011 2:57:08 PM
From: Jacob Snyder	1 Recommendation Read Replies (2) \| Respond to of 16955

JKS down 27% today, hitting an all-time low, far below its IPO price. My average cost is $13.2, which means I've lost half my money so far. I'm not selling. In fact, I'm thinking about buying more. The problem of industrial pollution in China is real, in solar and many other industries. The government, by allowing pictures of the protest in the government-owned press, and by shutting the factory, is siding with the protesters, and against the company. Allowing freedom of expression in China is a change from previous policy. They used to send the army into the streets to machine-gun protesters. I think Jinko will pay a fine, change their practices, and then re-open the factory. Their manufacturing costs will increase marginally, but they will still be among the most efficient of all the Chinese solars. Stock prices, for JKS and others, are getting so low, I think we are going to start seeing companies go private, or buy back a lot of shares. In general, I don't think it's a good idea for companies to buy back shares using borrowed money. But the valuations are absurd. Their PE is 1 (one). The next JKS conference call will be interesting. When I get nervous about buying more solars, I remind myself of these trends: solar panel cost, per watt of electricity produced: $60 in 1976 $6 in 1990 $3.50 in 2007 $2.00 in 2009 $1.05-1.40 today, and still falling solar power installed globally, in GW: 1.5 2005 1.6 2006 2.5 2007 6.5 2008 7.0 2009 17 2010 22 2011 estimate First Solar's module manufacturing cost, in $/watt at end of period: 1.59 2005 1.40 2006 1.23 2007 1.08 2008 0.87 2009 0.75 2010 0.70 2011 company guidance 0.52-0.63 2014 company guidance