3SOF

Anyone see this $678 million deal with giant STP.  HOKU sure seems to get some big deals for such a small company

Up 74% afterhours.

Hoku and Suntech Sign $678 Million Polysilicon Supply Contract
Wednesday June 13, 4:05 pm ET

POCATELLO, ID and WUXI, CHINA--(MARKET WIRE)--Jun 13, 2007 -- Hoku Materials, a wholly-owned subsidiary of Hoku Scientific, Inc. (NasdaqGM:HOKU - News) established to manufacture polysilicon for the solar market, and Suntech Power Holdings Co., Ltd. (NYSE:STP - News), one of the world's leading manufacturers of photovoltaic (PV) cells and modules, today announced the signing of a definitive contract for Hoku's sale and delivery of polysilicon to Suntech over a ten-year period beginning in mid-2009.

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Under the contract, up to approximately $678 million may be payable to Hoku during the ten-year period, subject to the achievement of milestones, the acceptance of product deliveries and other conditions. The contract provides for the delivery of predetermined volumes of polysilicon each year at set prices, using a take-or-pay approach, beginning with the first shipment in 2009 and continuing over a ten-year period from the first shipment. The contract also provides for an initial deposit of $2 million to Hoku upon signing and requires that Suntech make additional prepayments for products in the amount of $45 million. Under the agreement, this prepayment is to be paid to Hoku in installments, subject to Hoku's successful achievement of certain polysilicon quality and production volume milestones and other conditions. The prepayment amount is backed by a letter of credit issued to Hoku by the Bank of Communications. The contract includes a provision that allows for either party to cancel years 8 through 10 of delivery for any reason. Such cancellation notice must be delivered to the other party prior to the end of the fourth year of delivery under the agreement.

"We are pleased to have established this relationship with Suntech, a long term leader in the solar industry," said Dustin Shindo, Chief Executive Officer of Hoku Scientific. "Their rapid growth and dynamic leadership team make them an ideal partner for our company."

"Securing a long-term supply of polysilicon from Hoku will enable us to continue to expand our manufacturing capacity and execute on Suntech's strategic plan," said Dr. Zhengrong Shi, Suntech's Chairman and CEO. "We look forward to a strong and enduring business relationship with Hoku."

Hoku is in the process of building a plant capable of producing 2,000 metric tons of polysilicon per year in Pocatello, Idaho. Hoku announced in January the signing of a seven-year polysilicon supply contract with SANYO Electric Co., Ltd. that would provide for approximately $370 million in payments to Hoku over the term of the agreement. Hoku estimates that the establishment of this plant may require total construction costs of approximately $260 million. In connection with the financing of this construction, Hoku intends to seek debt capital of approximately $150 million. While Hoku believes that it is on track with the establishment of the polysilicon plant, under the agreement announced today, if Hoku is ultimately not successful in building the polysilicon plant, or if Hoku does not meet certain quality and productivity milestones or timely deliver minimum quantities of polysilicon, the agreement provides that the initial direct deposit will be returned to Suntech, and the letter of credit may be cancelled.

A new video coverage by David Randolph:

ON fire after latest contract.  Hit 8.19.

This made my day! One of my best day trades ever! In at 7.5 out at 9.2. Thank you Hoku!

This is what I call on FIRE   Look at that volume.

Catch on small pullback tomorrow

Solar stocks are back on FIRE !!!!!

On fire...perfect set-up.  Bounced off 9ema.

I think HOKU will hit that $12.87 high shortly.

LOve the chart

Thinking HOKU ready for the $13s soon.

Hello $13s...

HOKU...keeps going.

Looks like HOKU might be ready for some short-term upside.

Trendline confirmed, close above support, and hammer formation.


On 5 day intra-day chart, downtrend broken with a nice cup and handle formation eod.

It's HOKU time again....or at least very soon.

Why? I don't think HOKU will get the financing  they need and even if they do it will be at about $8 or lower. Furthermore, they will not be able to build the Pocatello plant in the time frame they expect because the winners there are gruesome and not many people can work construction jobs.

I shorted at $14 akk the way to $8. I wanted to short again at $11 but Scottrade did not have shares for shorting this stock.

Next earnings and the subsequent 4 to 6 quarters will be horrible. Don't be surprised to see HOKU at $3 in a not too distant future

There is the spike I was looking for.