Today I finally got around to buying STP.
I bought a small portion at $34.30. Wanting to take advantage of the "dip", but it seems that I was a bit to quick... ;D
Should off course have bought at their IPO, but I'm not that clever. ::)
STP: Suntech Power Holdings Co., Ltd. operates as a global solar energy company. It designs, develops, manufactures, and markets various photovoltaic cells and modules for electric power applications in the residential, commercial, industrial, and public utility sectors. Suntech's customers are located in various markets worldwide, including Germany, Spain, China, and the United States. The company was founded in 2001 and is based in Wuxi, China.
Homepage: http://www.suntech-power.com/en/zlsc.html
Report from 2005: http://phx.corporate-ir.net/phoenix.zhtml?c=192654&p=irol-newsArticle_Print&ID=816517&highlight=
Blow out earnings on STP up over 19% today.
The short version:
Suntech Power shares shine in premarket after profit report
(9:15 AM ET) NEW YORK (MarketWatch) -- Suntech Power Holdings Co.(STP, Trade)shares are up 13% at $30.95 premarket Thursday after the Wuxi, China, producer of solar-power solutions reported first-quarter net income nearly doubled as revenue more than doubled. Earnings reached $19.3 million, or 12 cents an American depositary share, from $10 million, or 11 cents, in the year-earlier period. Revenue was $89.9 million against $38.5 million. The company estimated second-quarter revenue would more than double to a range $110 million to $117 million.
It's SO nice to see something green after these horrible days! :D ;D :D
Cumulina, this looks beautiful. Thanks (App)
uc.
Today is the day of the exp. of the lock-up from the IPO! >:D
I was able to get some more around 22.00
The stock is rising again now after the first sell-off, but I think it would be worth to take a quick look at, if you are interested.
just FYI ;)
STP: CIBC Cuts to Sector Perform from Sector Outperform
Monday , June 12, 2006 08:15 ET
Issuer: Suntech Power Holdings Corporation, Limited (NYSE: STP)
Analyst Firm: CIBC World Markets
Ratings Action: DOWNGRADE
Current Rating: Sector Perform (from Sector Outperform)
&
Analysts: Suntech's growth speed may slow down in 2'Q
Monday , May 22, 2006 04:21 ET
BEIJING, May 22, 2006 (Xinhua via COMTEX) -- Suntech Power Holdings Co., Ltd. (NYSE: STP), one of the world's leading manufacturers of photovoltaic (PV) cells, announced on May 18 that its revenues in the first quarter of 2006 reached 89.9 million dollars and net income, jumping 93 percent year on year, attributable to holders of ordinary shares of $19.3 million, or $0.12 per diluted American Depository Share (ADS).
Some media reports attributed the profit surge to operation ahead of schedule of new production lines.
However, Shi Zhengrong, chairman and CEO of Suntech, claims that popularisation of new technologies reduces production cost and lead to profit jump.
But analysts said that owing to global PV cell industry's over expansion and shortage of raw materials, operating rate of PV cell producers will deline in 2006.
To be noticeable, Suntech also reduces production targets for 2006's 2'Q in its report.
The company plans to produce 31-33 megawatts of solar products in 2'Q, and 130-140 megawatts for the whole year of 2006.
Earlier, however, the company had announced that the output would reach 240 megawatts by the first half of 2006 and 300 megawatts by the end of 2006.
Thanks, la-onda.
I had not seen that one.
Doesn't change my view, though.
And right now I'm a happy little investor...
:D :D :D :D :D :D
STP: Q1 EPS 12c vs 11c Beats 9c Est; Guidance Above Consensus
Thursday , May 18, 2006 08:05 ET
QUARTER RESULTS
Suntech Power Holdings Corporation, Limited (STP) reported Q1 results ended March 2006. Q1 Revenues were $89.89M; +133.50% vs yr-ago; BEATING revenue consensus by +14.47%. Q1 EPS was 12c; +9.09% vs yr-ago; BEATING earnings consensus by +33.33%.
GUIDANCE
Q2-06 Revenue Outlook [$110 - $117M]: Suntech expects its total net revenues in Q2 2006 to be in the range of $110 million to $117 million. The Q2-06 revenue forecast is above current consensus estimates.
- SunTech Power (NYSE: STP) - SunTech Power has been punished the most out of all the solar stocks. The Chinese company recently stated that a news story in a local Chinese business daily regarding 2 billion yuan investment to build two polysilicon fabs in Luoyang, China was incorrect.
I have bought a few STP ( little bit too late @ 23.8$)
cheers
Oliver
Now trading at 24.77, up about 5% from todays open... ;D
http://www.newratings.com/analyst_news/article_1295098.html
Suntech Power initiated at "Buy"
Monday, June 12, 2006 8:56:02 AM ET
Merrill Lynch
NEW YORK, June 12 (newratings.com) - Analysts at Merrill Lynch initiate coverage of Suntech Power (ticker: STP) with "Buy".
Today's Candlestick Patterns:
High Wave
Bullish Harami
;)
Oliver
www.streetinvesting.com: Begins Research on Suntech Power Holdings
Tuesday , June 13, 2006 03:43 ET
Jun 13, 2006 (M2 PRESSWIRE via COMTEX) -- Streetinvesting.com is the author of this release. Our goal is to educate, inform and initiate a creative philosophy of investment tactics. This release is a result of Suntech Power Holdings Co. Ltd.'s (NYSE:STP) latest corporate developments and their recent trading activity, up 6.24% on Monday, with a well above average 5,749,400 shares having traded hands come market closure. Streetinvesting.com strives to help investors seek a diversified portfolio by introducing techniques to help grasp a better understanding and concept of the market and the daily activities that a company experiences. To learn more and become part of the acclaimed online financial newsletter community, visit www.streetinvesting.com for a complimentary subscription.
Suntech Power Holdings Co., Ltd. is a leading solar energy company in the world as measured by production output of solar cells in 2005. Suntech provides solar solutions for a green future. Suntech designs, develops, manufactures and markets a variety of high quality, cost effective and environmentally friendly PV cells and modules for electric power applications in the residential, commercial, industrial and public utility sectors. Suntech's customers are located in various markets worldwide, including Germany, Spain, China and the United States.
Streetinvesting.com has recently become interested in this Company, despite the recent decline in share value, after today's turn-around in share price, in combination with the well above average trade volume and increased investor sentiment. Although there was no news to accompany the day's success, our research team feels that mid-May's release of Q1 fiscal results may speak volumes for what this Company might be able to achieve in the future.
On May 18th, 2006, Suntech Power Holdings Co., Ltd. announced first quarter 2006 total net revenues of $89.9 million and net income attributable to holders of ordinary shares of $19.3 million, or $0.12 per diluted American Depository Share (ADS).
"During the quarter we continued to improve our solar cell conversion efficiency rates while shifting more production to use thinner 210 micron wafers. This helped us to improve profitability even while silicon wafer prices continued to rise," said Dr. Zhengrong Shi, Suntech's chairman and CEO. "We intend to continue to achieve profitable growth by lowering cost per watt through our R&D efforts, increasing production capacity and expanding our markets as more and more governments worldwide launch initiatives promoting the use of solar energy." Total net revenues for the first quarter of 2006 were $89.9 million, an increase of 1.0% sequentially and an amazing 133.5% year-over-year. The modest sequential growth rate reflected seasonality in production as there was approximately one fewer working week during the first quarter compared to other quarters due to the Chinese New Year holidays.
Gross profit for the first quarter of 2006 was $27.1 million, representing an increase of 14.7% over the fourth quarter of 2005 and 102.6% over the first quarter of 2005. Gross margin for the first quarter of 2006 was 30.1% compared to 26.5% in the fourth quarter of 2005 and 34.7% in the first quarter of 2005. Sequentially, gross margins increased due to a rise in the price of PV modules and improved conversion efficiencies. The year-over-year gross margin decrease was primarily due to increases in the cost of raw materials as well as share based compensation.
Operating expenses were also down from the last quarter, at $7.0 million compared to $11.0 million in the fourth quarter of 2005, but $2.0 million in the first quarter of 2005. The sequential decrease in operating expenses, the Company proclaimed, was primarily due to a decline in share based compensation to $2.3 million in the first quarter of 2006 from $5.8 million in the fourth quarter of 2005, as well as fourth quarter operating expenses including certain internal expenses associated with Suntech's restructuring and December 2005 initial public offering. The year-over-year increase in operating expenses reflected growth in the business needed to support the Company's revenue growth as well as share based compensation expenses.
Income from operations for the first quarter of 2006 was $20.1 million, representing a sequential increase of 59.9% and a year-over-year increase of 76.9%. Operating margin was 22.3% compared to 14.1% in the fourth quarter of 2005 and 29.5% in the first quarter of 2005.
Net income attributable to holders of ordinary shares for the first quarter of 2006 was $19.3 million, representing a 97.7% sequential increase and a 93.3% increase year-over-year. Basic and diluted net income per ADS for the first quarter of 2006 were $0.13 and $0.12, respectively, compared with $0.10 and $0.08 in the fourth quarter of 2005, respectively. First quarter 2005 basic and diluted net income per ADS were both $0.11.
As of March 31, 2006, Suntech had cash and cash equivalents of $345.1 million. Net operating cash outflow for the first quarter was $31 million primarily as Suntech made advance payments to suppliers to secure silicon wafers. The operating cash outflow in the first quarter of 2006 was also due to the increase in inventory balance from $40.4 million as of December 31, 2005 to $61.8 million as of March 31, 2006, as Suntech accumulated raw materials for further production expansion. In the first quarter of 2006, depreciation was $1.4 million and capital expenditures were $12.2 million.
update:
STP: Short Interest UP 80.1% to 2.0M in Jun 2006
Wednesday, June 21, 2006 17:21 ET
According to new short interest data from NYSE, short interest for Suntech Power Holdings Corporation, Limited (NYSE: STP) INCREASED 80.1% to 1,975,821 shares for the month ended mid-June, 2006.
SYMBOL MAY JUNE CHANGE %CHANGE DAYS/COVER
-------- ------------- ------------- ------------- ------------ ----------
STP 1,096,923 1,975,821 +878,898 +80.12% 2
Based on STP's 20-day average daily share volume of 1,771,940, it would require approximately 2 day(s) of buying to cover this short interest.
BROKER CALL - China's Suntech kept at 'equal-weight' - Morgan Stanley
Friday , July 07, 2006 04:17 ET
By Staff Reporter
BEIJING, Jul 07, 2006 (XFN-ASIA via COMTEX) -- Morgan Stanley said it is maintaining its "equal weight" call on China's Suntech Power Holdings Co Ltd (NYSE STP) after the solar energy equipment maker secured more long-term solar wafer supplies.
"Suntech signed a letter of intent (LOI) with MEMC Electronic Materials Inc to purchase raw materials equivalent to about 5 Gigawatts over the next 10 years. Our confidence level on 2007 earnings estimates is now higher, as we consider MEMC to be a more dependable supplier than some of the other suppliers it had been relying on," Morgan Stanley said in a note to investors.
Suntech will largely consume all the incremental polysilicon (solar cell) production at MEMC, the note said.
"As a result, MEMC has cancelled its LOI with Motech (Industries Inc of Taiwan), which likely will be negative for Motech as well other potential new entrants."
News of more stable material supply flows come as a relief to the solar power company, the note said.
"We believe Suntech has been facing difficulty in securing wafers in the near term and as a result its spot purchasing has increased (evident in high cell sales)," the note said.
Suntech, which makes solar power equipment including photovoltaic cells and arrays, raised 396 mln usd in December last year from its listing on the New York Stock Exchange.
Morgan Stanley has a target price for Suntech of 35.00 usd per share.
The company's shares closed Thursday in New York up 0.77 usd, or 2.75 pct, at 28.74.
News out, and STP is soaring!
Up 9.17% now, HOD so far 28.42
Earnings aug 15, pre market.
Suntech Signs Agreement to Acquire MSK Corporation
August 02, 2006 08:00:40 (ET)
WUXI, China, Aug 02, 2006 /Xinhua-PRNewswire via COMTEX/ -- Suntech Power Holdings Co., Ltd. (STP, Trade), one of the world's leading manufacturers of photovoltaic (PV) cells, announced today that it has signed a definitive agreement to acquire MSK Corporation in a two-step cash and stock transaction. In the first step of the acquisition, which is expected to close in the third quarter 2006, Suntech will acquire a two-thirds equity interest in MSK for $107 million through a combination of subscription to new shares and purchase of existing shares. The balance of the consideration is based upon revenue targets for MSK and will be paid in the second step, which is anticipated to close by the end of 2007.
''While Japan is the world's largest single market for PV modules, it is also one of the most difficult markets for foreign players to enter,'' said Dr. Zhengrong Shi, Suntech's Chairman and CEO. ''We anticipate that this acquisition will give Suntech the advantage of MSK's nationwide sales and marketing platform in Japan, which we expect to leverage to grow our market share in this important market.''
Based on the 2006 Photovoltaic System Market Future Outlook Report, Japan, Japan is the most important market for solar energy in terms of both total installation and production of solar cells and modules with 53% of world production. The report also states that Japan is one of the fastest growing markets in the world posting 48% annual growth in 2005 in the production of PV cells and modules.
MSK Corporation is one of Japan's largest PV manufacturers and one of the top-ranking companies in the building-integrated photovoltaics (BIPV) space. MSK provides customer-tailored PV products that give aesthetic finish to a building by replacing the conventional building materials. In addition, MSK provides turnkey solutions to its clients. Its services range from pre-system preliminary studies through to post-installation commissioning and maintenance.
With more than 20 years of experience and good brand name in the PV business, MSK currently has approximately 260 employees, leading technical expertise and one of the world's largest PV module manufacturing plants with a production capacity of approximately 100 megawatts in Nagano, Japan. In 2005, MSK had annual production capacity of approximately 200 megawatts.
''Through this acquisition, Suntech will also gain the advantage of MSK's leading BIPV product and solar system design capability,'' continued Dr. Shi. ''This acquisition will bring two important companies in different PV sectors together and we anticipate that it will result in great synergies. It will enable us to accelerate innovation, bring to market new PV solutions that complement our existing product range, and capture new opportunities within the fast growing BIPV market.''
Dr. Tadao Kasahara, CEO of MSK, said, ''MSK looks forward to continuing to provide commercial and industrial solar solutions to Japan and markets in other parts of the world with both advanced building integrated photovoltaics (BIPV) and other high-quality PV products. As a subsidiary of Suntech, MSK will be able to access Suntech's support in terms of advanced PV cell/module products and cost competitiveness, financial resources, and distribution channels, as well as have the possibility of pioneering BIPV applications in the Chinese market.''
Suntech expects that MSK's global sales footprint, established branding and international marketing expertise will further Suntech's strategy of diversifying its customer base and developing sales channels in key international markets. MSK's CEO, Dr. Tadao Kasahara, has agreed to remain in his current role for at least four years.
Under the definitive agreement, Suntech will be acquiring MSK in two steps. Upon closing of the first step of the acquisition, which is expected to occur in the third quarter of 2006, Suntech will acquire a two-thirds equity interest in MSK for $107 million in cash. Upon closing of the second step of the acquisition, which is expected to occur by the end of 2007, Suntech will acquire all or a substantial portion of the remaining interest in MSK for a consideration based on MSK's ability to achieve certain revenue targets. If Suntech acquires 100% of the remaining interest in MSK, the range of consideration for the second step is $53 million to $193 million in the form of Suntech shares. The first step of the transaction will be financed through a one year bridge loan.
The transaction is subject to customary closing conditions, including approval of MSK's shareholders. The transaction is not subject to regulatory approvals.
Credit Suisse acted as exclusive financial advisor and Simpson Thacher & Bartlett LLP served as international counsel for Suntech on the transaction.
PT Global and Mitsubishi UFJ Securities acted as exclusive financial advisors and O'Melveny & Myers LLP served as international counsel for MSK on the transaction.
C/C just about to start.... ;) ;) ;D
It looks like it's going to be a lively day! >:D
**************************
Last Trade as of 8:00 AM ET 8/15/06
Last Price Today's Change Bid size Ask size Volume Trade
28.01 0.00 (0.00%) 29.00 x200 30.00 x1,000 400
NYSE Real time Quote
Last Trade as of 12:00 AM ET 8/14/06
< Return to Previous
Suntech Power Reports Second Quarter 2006 Financial Results
PR Newswire - August 15, 2006 7:41 AM ET
Related Quotes
Symbol Last Chg
STP Trade 28.01 0.00
Real time quote.
Suntech Power Holdings Co., Ltd. (NYSE: STP), one of the world's leading manufacturers of photovoltaic (PV) cells, today announced second quarter 2006 total net revenues of $128.2 million and net income of $26.5 million, or $0.17 per diluted American Depository Share (ADS).
''We are pleased to have exceeded guidance for the quarter as our expanded production allowed us to take advantage of increasing worldwide demand for PV products,'' said Dr. Zhengrong Shi, Suntech's Chairman and CEO. ''During this period of tight silicon supply, our willingness to pay higher prices for silicon on the spot market means we have been able to increase our market share and satisfy more customers, while simultaneously increasing our EPS.''
Dr. Shi concluded, ''We will continue our strategy of building capacity, expanding our markets and lowering cost per watt through our leading R&D.''
Suntech began to sell PV cells and modules into several new markets during the second quarter, including France, Greece, and Portugal and saw strong sales growth in the United States and China markets.
''The two recently announced agreements bring significant strategic advantages to Suntech,'' continued Dr. Shi. ''The acquisition of MSK Corporation, one of Japan's largest PV module manufacturers and one of the top-ranking companies in the building-integrated photovoltaics (BIPV) space, gives us a strong presence in the Japanese market and helps expand our offering of value-added PV module solutions. Our solar wafer supply agreement with MEMC locks in long term silicon supply at competitive rates, which we believe will increase both our long-term growth visibility and cost competitiveness.''
Dr. Shi noted that Suntech's required silicon supply for planned production in 2007 has been fully secured through long-term supply contracts, OEM exchange programs, and strategic alliances with key suppliers.
Second Quarter 2006 Results
Total net revenues for the second quarter of 2006 were $128.2 million, an increase of 42.6% sequentially and 205.9% year-over-year. The sequential growth reflected the additional output from the newly added 30MW production line, higher than expected equipment utilization rate and increased selling price of Suntech's PV products.
Breakdown of Second Quarter 2006 Net Revenues
Q2 2006 % of Q2 2006 Growth vs. Q2 Growth vs. Q1
Net Revenues 2005 2006
PV Cells $34.7 million 27.1% +820% (14%)
PV Modules $92.3 million 72.0% +142% +87%
PV System
Integration $1.1 million 0.9% +6231% +3501%
Total $128.2 million 100.0% +206% +43%
Really nice day for STP.
Last trade $31.20, up $3.19 or 11.39% - That was also todays high. 8)
Today's volume 6.5 mil. (Average volume 1.5 mil.)
I'll try to post a chart a little different from the usual, I got it from http://www.chart.nu/
Ahemmmm.... ;D
Suntech Announces Update to Fourth Quarter 2006 and 2007 Guidance, Amendment to MSK Acquisition Agreement and an Update to its MSK Integration Plan
Friday February 2, 7:43 am ET
WUXI, China, Feb. 2 /Xinhua-PRNewswire/ -- Suntech Power Holdings Co., Ltd. (NYSE: STP - News), one of the world's leading manufacturers of photovoltaic (PV) cells and modules, announced today an update to its fourth quarter 2006 and 2007 guidance, an amendment to the original agreement for the acquisition of MSK Corporation, which was entered into in August 2006, setting the final purchase price for the remaining stake in MSK at $53 million, and an update on its integration initiatives for the MSK business.
ADVERTISEMENT
For the year 2006, it is estimated that Suntech, including contribution from MSK, shipped around 157.5MW to 159MW, an increase from its original guidance of 130MW to 140MW. For the fourth quarter 2006, Suntech now estimates that its total production output, excluding contributions from MSK, will be in the range of 48MW to 49MW, compared to the original projection of 45MW to 46MW, and its total net revenues, excluding contribution from MSK, will be in the range of $188 million to $192 million, compared to the original projection of $166 million to $170 million. For the fourth quarter 2006, MSK's production output is estimated to be in the range of 6.5MW to 7MW, compared to the original projection of 14MW to 15MW. For the fourth quarter 2006, the revenue contribution from MSK is estimated to be between $30 million to $32 million, compared to the original projection of $60 million to $64 million, with a net loss contribution of between $3 million to $4 million after taking into effect the MSK minority interest.
For the first quarter 2007, Suntech currently projects that, including contribution from MSK, its total production output target is in the estimated range of 60MW to 62MW and its total net revenues target is in the estimated range of $220 million to $228 million. Such guidance takes into account the assumption that Suntech's total PV cell production capacity will remain constant at 270MW until the second quarter of 2007 when additional capacity is expected to become operational. In addition, the first quarter 2007 guidance also takes into account the shorter month of February and the Chinese New Year holiday. Suntech has increased its total PV cell production output target in 2007 from 250MW to 280MW. Suntech has also raised its expected 2007 year end PV cell production capacity target from 390MW to 420MW.
''We are very pleased with the results and accomplishments of our core business during 2006 which has increased our projected production output and capacity for 2007,'' said Dr. Zhengrong Shi, Suntech's chairman and CEO. ''We are taking proactive, quick and decisive action to reorient MSK's business to focus on its strengths and reduce its cost structure.''
On February 1, 2007, Suntech, MSK and MSK's remaining shareholders entered into an amendment to the original acquisition agreement. This amendment fixed the consideration payable for Suntech's eventual acquisition of the remaining one-third equity interest of MSK at $53 million. The consideration, payable in the form of Suntech shares based on a price of $29.00 per share, is fixed and is no longer tied to the future performance of MSK's business as stipulated in the original acquisition agreement. Subject to mutual agreement, however, the consideration may be payable in cash. The amendment will accelerate the integration of MSK into Suntech's existing operations, which has already commenced, with the acquisition of the remaining one-third interest in MSK expected to be completed in late 2007.
The downward adjustments to MSK's results reflect Suntech's planned rapid integration of MSK's operations and the strict cost-control measures implemented to date. Suntech is in the process of selectively replacing certain high-cost supply arrangements to leverage upon Suntech's superior scale and cost advantages. Starting from February 2007, in order to take advantage of Suntech's low cost manufacturing capabilities and operating experience, MSK has halted production in Japan and will move key production activities to China. These changes have had a net effect of decreases in MSK's actual and expected production output for the fourth quarter of 2006 and in 2007, respectively. Suntech expects MSK's operations will sustain a small net loss in the near term but these changes will result in a more cost effective MSK, which focuses on its core strength, the higher value added BIPV products.
MSK will continue to be preserved as a brand and its customer base will continue to be supported. MSK will focus its resources on its core BIPV strength, on continuing to engage in innovative BIPV product development and on increasing its sales and marketing initiatives with a goal to expanding the market reach of its BIPV products in Japan and beyond to other major international PV markets. Recent senior hires and promotions at Suntech America and Suntech Europe were undertaken in large part to expand the sales and marketing activities of MSK's BIPV products.
Suntech also plans to extract additional synergies from the acquisition of MSK by aligning the two companies' sales and marketing initiatives, establishing joint sales channels and customer bases, promoting best practices in production and research and development activities, as well as consolidating back office functions.
''Our acquisition of MSK helped us both in terms of accelerating our market expansion plans in Europe, particularly through the combination of Suntech's and MSK's sales and marketing channels within Suntech Europe, and also in terms of leveraging MSK's early mover advantage in the BIPV space by increasing BIPV sales in Japan and other major international PV markets. By taking immediate steps to optimize sales and reduce production costs while maintaining high product quality, we expect to accelerate the integration of MSK's customers, business and manufacturing operations into Suntech's highly successful operations. This will accelerate the cost savings and cross-selling synergies that are the objectives of this acquisition," said Dr. Shi.
Suntech will continue to provide MSK fourth quarter 2006 results and related disclosure as part of its 2006 year-end earnings call, but given the accelerated integration between Suntech and MSK's business operations, Suntech will not continue to report separate results or give separate guidance for MSK in the future.
la-onda...it seems that the two of us are the only ones on 3SOF who are interested in STP?
Or are the rest of you just shy? ;)
I added to my position today on the dip to $34.00
If it's good enough for institutions, then it should be good enough for me, right? I assume that they've done their homework and are happy with it.
Institutional Holdings = 38.46% of the shares.
Found an interview today:
By Michael Erman and Timothy Gardner
REUTERS
11:52 a.m. April 20, 2007
NEW YORK – Suntech Power Co.'s chief executive said Friday he expects the U.S. solar power market to grow between 30 percent to 50 percent a year over the next decade.
"The U.S. market will be very bullish," Zhengrong Shi said in an interview in New York.
China's Suntech, the world's fourth-largest producer of solar power cells, opened its U.S. unit, Suntech America, last summer.
Shi said U.S. sales already account for 15 percent of total production – its third-biggest market, after Germany and Spain.
Annual growth in the U.S. market could accelerate from about 30 percent now if a $3-per-watt solar subsidy being discussed in U.S. Congress becomes law, he said.
"If this was passed, I think the U.S. would become the biggest market in no time," Shi said. The country could become Suntech's biggest market in two or three years, and the company may consider building a U.S. panel manufacturing plant, he added.
The United States generates half its power from cheap coal, one factor that has limited solar to 0.1 percent of the U.S. power supply.
But Shi said coal's price advantage should weaken over the next decade as efficiencies in making solar panels could slash costs to 20 to 25 cents per kilowatt hour, about the cost of grid power in California.
In 20 years, renewable sources of power would provide 15 percent to 20 percent of global electricity, he said.
His company is primarily an exporter – only about 10 percent of its business is in China – and Shi does not see this changing until prices for photovoltaic cells drop sharply.
"As long as Chinese manufacturers can sell the product globally, we don't need to depend on the local market," he said.
NO SILICON OVERSUPPLY SOON
Tight silicon supplies have hampered panel production from small solar companies. Many silicon refiners closed during the technology meltdown earlier this decade, but analysts say more silicon refining will come on line next year.
Even though many manufacturers of the material say they are expanding their operations, Shi said he expects supply to remain relatively tight at least through 2010.
Still, he is not considering using any other materials for Suntech's photovoltaic cells.
"Silicon is sand," Shi said. Eventually, he said, "it should be the cheapest and most abundant material.
Competition in solar power has recently grown very robust as companies move to take advantage of incentives for renewable energy.
Shi said once the industry becomes more mature, the successful companies will consolidate and the rest will likely go out of business.
Still, he said while the company always looks at potential acquisitions, "so far, we haven't found any targets."
He also shrugged off the possibility of Suntech being acquired by a larger energy player.
"I don't think we intend to do that because we think we can become one of the more important players in the sector," Shi said. "It would have to be a big check."
hi cumulina,
STP is "just" on my watchlist ;)
fyi:
1)
Thursday , April 19, 2007 17:37ET
According to new short interest data from NYSE, short interest for Suntech Power Holdings Corporation, Limited (NYSE: STP) INCREASED 2.1% to 6,769,226 shares for the month ended mid-April, 2007.
SYMBOL MARCH APRIL CHANGE %CHANGE DAYS/COVER
-------- ------------- ------------- ------------- ------------ ----------
STP 6,629,955 6,769,226 +139,271 +2.10% 4
Based on STP's 20-day average daily share volume of 1,915,725, it would require
approximately 4 day(s) of buying to cover this short interest.
2)
BROKER CALL - China's Trina Solar downgraded to 'neutral' - Merrill Lynch
Thursday , April 19, 2007 01:47ET
By Staff Reporter
BEIJING, Apr 19, 2007 (XFN-ASIA via COMTEX) -- Merrill Lynch said it is downgrading Trina Solar Ltd to 'neutral,' adding that its top picks in the solar energy sector are ReneSola Ltd, Suntech Power Holdings Co Ltd and Motech Industries Inc, all rated at "buy".
In a note, Merrill Lynch said the three top picks all share favorable risk-reward profiles with solid operating prospects and attractive valuations after they lagged a recent sector rally.
It said it sees a conservative investor outlook for pricing and demand after a slow start to the year in January and February. "However, upbeat guidance for full-year customer demand from sales and marketing teams appears to be coming through as shipments are accelerating strongly into the summer. We believe investor expectations will firm accordingly," Merrill Lynch said. The note added that healthy demand trends seen in March and April are driven by cell and module prices that are off five to 10 pct from their peak, helping reset solar IRRs to attractive levels. "In addition, the inventory overhang created when demand froze as prices peaked and rolled over in the fourth quarter of 2006 appears to have substantially cleared in February/March contributing to the acceleration in shipments," it added. Merrill Lynch said it sees consistently strong upstream demand and pricing for polysilicon and wafers in Asia, suggesting that firm midstream cell production is broad-based. Sector valuations have risen sharply on share price gains, it said, adding that many solar stocks have re-rated from low- to mid-teen 2008 valuations to high-teen valuations based on its consensus estimates.
"We believe that this re-rating reflects rising confidence that the tier two players will participate in industry growth over the next 12-36 months and that their valuation gap to tier one players was simply too wide," the note said.
Quote from: cumulina on August 15, 2006, 05:01:14 PM
Really nice day for STP.
Last trade $31.20, up $3.19 or 11.39% - That was also todays high. 8)
Today's volume 6.5 mil. (Average volume 1.5 mil.)
I'll try to post a chart a little different from the usual, I got it from http://www.chart.nu/
Hi Cumulina,
Applaud.
Thank you for that website.
I just added it to my favourites.
Ares
STP seems to be an overlooked solar-stock - I don't know why?
It's my biggest holding, just a bit bigger than JASO. ;)
Some really good news made STP run today:
:D :D :D :D :D
News Story
China's Suntech Power to provide solar modules to San Francisco airport
Tuesday April 24, 2007 01:54:48 EDT
BEIJING, Apr 24, 2007 (XFN-ASIA via COMTEX News Network) --
China's US-listed Suntech Power Holdings Co Ltd said that it has reached an agreement to supply nearly 3,000 solar modules for installation in the San Francisco International Airport's new Terminal T3 solar project.
The 450 kilowatt system will be installed by San Francisco based BASS Electric and will cover the approximate area of a football field, the company said in a statement.
''This project demanded the photovoltaic modules meet a specific set of stringent performance criteria, and Suntech was able to meet or exceed all of them," said BASS Electric president Jeff Yee.
No financial details were provided.
With all the interest in solar stock - why so little interest in STP? ???
OK. Here is a chart...
QuoteWith all the interest in solar stock - why so little interest in STP?
People had better get interested ;D. This is one of the stocks recommended by Robert Hsu in his China Profit Strategy portfolio (http://www.chinaprofitstrategy.com/) and so far he has been nailing the China stocks...
I got some calls during the last pullback, paying off nicely now :)
Quote from: TraderStar on April 25, 2007, 03:59:22 PM
QuoteWith all the interest in solar stock - why so little interest in STP?
People had better get interested ;D. This is one of the stocks recommended by Robert Hsu in his China Profit Strategy portfolio (http://www.chinaprofitstrategy.com/) and so far he has been nailing the China stocks...
I got some calls during the last pullback, paying off nicely now :)
TraderStar -
I wonder that also. Have you done a 3sof style analysis of STP yet?
Is Robert Hsu interested in any other solar stocks?
Although I'm not a fan of the Chinese market right now STP came up on my screens....
STP: Ascending Triangle Pre-Breakout
Shares of Suntech Power Holdings (STP) appear to be testing all time breakout levels at $45.00. The stock has formed a 2-year weekly ascending triangle and looks poised for a breakout. Furthermore, the company announced an agreement to purchase 510MW from ReneSola over the next 4-years. Watch for STP to breakout above $45.00 per share on above average volume.
Type: Ascending Triangle Pre-Breakout
http://www.chartsetups.com/articles/56/1/STP-Ascending-Triangle-Pre-Breakout/Page1.html
ER is out.