STP

[cumulina]

C/C just about to start.... 

It looks like it's going to be a lively day! 

**************************

Last Trade as of 8:00 AM ET 8/15/06
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Last Trade as of 12:00 AM ET 8/14/06
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Suntech Power Reports Second Quarter 2006 Financial Results
PR Newswire - August 15, 2006 7:41 AM ET
   

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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%

[cumulina]

Really nice day for STP.

Last trade $31.20, up $3.19 or 11.39% - That was also todays high. 

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/

[cumulina]

Ahemmmm....

[la-onda]

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.

[cumulina]

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."

[la-onda]

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.

[Ares]

Really nice day for STP.

Last trade $31.20, up $3.19 or 11.39% - That was also todays high. 

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

[cumulina]

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:

       

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.

[cumulina]

With all the interest in solar stock - why so little interest in STP? 

OK. Here is a chart...

[TraderStar]

With all the interest in solar stock - why so little interest in STP?

People had better get interested  .  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 

[ravenquork]

With all the interest in solar stock - why so little interest in STP?

People had better get interested  .  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?

[calven]

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

[BigSully1]

ER is out.