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Tuesday, July 25, 2006
Evergreen Solar Inc. (NASDAQ: ESLR): Natural Voltage for Your Portfolio
For the past few months, the sun hasn’t been shining on the stock price of Evergreen Solar, which is now down around $11, after trading as high as $17 just a few months ago. Personally, I think this means it’s time to think about buying.
Evergreen uses its proprietary ‘String Ribbon’ technology process in manufacturing crystalline silicon wafers, the primary components of photovoltaic cells. These photovoltaic cells generate direct electricity when exposed to sunlight. It principally offers solar panels, solar cells, and solar systems.
These solar modules are the assemblies of photovoltaic cells that are electrically interconnected and laminated for electric power generation, such as on-grid and off-grid generation. The company sells its products through distributors, systems integrators, and value-added resellers.
Its products can be used for residential homes and for large commercial operations. The company has lined up several major contracts since November, including a big one this month that will generate $600 million in revenues over the next five years! Growth should continue to be strong as growing demand (those tax incentives really help!) encounters increasing energy prices.
Of course, the market seems to disagree with my assessment, driving Evergreen’s price down over the past few months. I think this has a lot to do with Evergreen’s numbers compared to its competitors; its growth and profitability over the past twelve months have been far behind the industry average, and its debt to equity ratios are very high at 1.09 (industry average is .17). But these numbers don’t reflect the new contracts, and I think the price today is undervalued. I expect is going to jump once these contracts start showing up on Evergreen’s bottom line.
We have visited this company -- based in Marlboro, Massachusetts -- and we know their capability and drive. Evergreen has a big future.
Type of stock: Evergreen is a twelve-year-old alternative energy company whose time to shine may have come.
Price target: The stock is way off its $17 52-week high and is now below $12; I think it’s a good deal here. If Evergreen drops below $11, I think it’s a steal.
This is a stock advisor on AOL named Hillary
http://www.aimpages.com/hilaryonstocks/profile.html
Evergreen Solar Inc. (NASDAQ: ESLR): Natural Voltage for Your Portfolio
For the past few months, the sun hasn’t been shining on the stock price of Evergreen Solar, which is now down around $11, after trading as high as $17 just a few months ago. Personally, I think this means it’s time to think about buying.
Evergreen uses its proprietary ‘String Ribbon’ technology process in manufacturing crystalline silicon wafers, the primary components of photovoltaic cells. These photovoltaic cells generate direct electricity when exposed to sunlight. It principally offers solar panels, solar cells, and solar systems.
These solar modules are the assemblies of photovoltaic cells that are electrically interconnected and laminated for electric power generation, such as on-grid and off-grid generation. The company sells its products through distributors, systems integrators, and value-added resellers.
Its products can be used for residential homes and for large commercial operations. The company has lined up several major contracts since November, including a big one this month that will generate $600 million in revenues over the next five years! Growth should continue to be strong as growing demand (those tax incentives really help!) encounters increasing energy prices.
Of course, the market seems to disagree with my assessment, driving Evergreen’s price down over the past few months. I think this has a lot to do with Evergreen’s numbers compared to its competitors; its growth and profitability over the past twelve months have been far behind the industry average, and its debt to equity ratios are very high at 1.09 (industry average is .17). But these numbers don’t reflect the new contracts, and I think the price today is undervalued. I expect is going to jump once these contracts start showing up on Evergreen’s bottom line.
We have visited this company -- based in Marlboro, Massachusetts -- and we know their capability and drive. Evergreen has a big future.
Type of stock: Evergreen is a twelve-year-old alternative energy company whose time to shine may have come.
Price target: The stock is way off its $17 52-week high and is now below $12; I think it’s a good deal here. If Evergreen drops below $11, I think it’s a steal.
This is a stock advisor on AOL named Hillary
http://www.aimpages.com/hilaryonstocks/profile.html