Stock Market News & Stocks to Watch from StraightStocks » Evergreen Solar Inc.

Evergreen Solar’s Loss Widens – Analyst Blog

Zacks Market Commentaries — Thu, 11 Feb 2010 15:33:32 +0000

Massachusetts-based Evergreen Solar Inc. (ESLR) reported fiscal fourth-quarter loss per share of 13 cents, which is identical to the year-ago quarter. This is however higher than the Zacks Consensus Estimate of a 9-cent loss. The fall came from lower average selling prices.

Out of the 19 analysts covering the stock, two have revised their estimates downwards in the last 30 days for fiscal 2010. We expect Evergreen Solar to narrow its losses in fiscal 2010 with a loss per share of 25 cents.

In the reported quarter, Evergreen Solar improved its total manufacturing cost to $2.05 per watt from $2.24 per watt in the third quarter of fiscal 2009. However, this is lower than $75.5 million of product revenue in the third quarter of fiscal 2009.

Evergreen Solar clocked revenues of $74.5 million in the reported quarter compared to $44.2 million in the third quarter of fiscal 2009. Product revenues were $74.5 million compared to $41.1 million in the year-ago quarter. Royalty and fee revenues were only $0.02 million in the reported quarter compared to $3.1 million in the year-ago quarter.

In the reported quarter, Evergreen Solar produced about 34 megawatts and shipped approximately 31.9 megawatts, compared to 31.3 megawatts in the third quarter 2009. The sequential decrease in product revenues was due mainly to a 3.7% decline in average selling prices. Average selling price during the reported quarter was $2.32 per watt, down from $2.41 per watt in the third quarter of 2009.

Evergreen Solar sold approximately 68% of its production in Europe and 32% in US in the reported quarter, compared to approximately 73% of production in Europe, 24% in the US and 3% in Asia during the third quarter of fiscal 2009.

Gross margin in the reported quarter was 11.9%, up from 9.7% in the third quarter of 2009. Product gross margin was 11.9% in the quarter compared to 7.1% for the third quarter of 2009.

Evergreen reported cash and cash equivalents of $112.4 million at fiscal-end 2009 from $100.9 million at fiscal-end 2008. The company used $37.1 million of cash in operating activities in fiscal 2009, compared to $65.9 million in fiscal 2008. Senior convertible notes increased to $323.3 million at fiscal-end 2009 from $311.5 million at fiscal-end 2008.

Evergreen Solar’s geographically diversified contractual backlog, ongoing expansion programs and shifting a part of its manufacturing process to China, improving operating efficiencies and upgrading technology will help maintain its positive momentum.

However, continuing near-term losses due to start-up costs, capital expenditures, apprehension over a subsidy roll-back in Germany and earnings dilutive stock issuances may stunt the near-term share price upside potential. We maintain our market Neutral recommendation on the Zacks #3 Rank ('hold') stock.

Read the full analyst report on "ESLR"
Zacks Investment Research

Solar Energy Initiatives, Inc. (SNRY.OB): Grass Roots Solar

QualityStocks — Mon, 23 Nov 2009 15:13:27 +0000

These days, solar is one of the most popular words in the green lexicon. You hear it everywhere, with most of the talk focusing on the increasingly large solar power plants that are now being built. New designs have dropped the price of large scale solar electricity generation by over 80% in the last 25 [...]

Evergreen Loss Narrows – Analyst Blog

Zacks Market Commentaries — Fri, 06 Nov 2009 18:40:19 +0000

Massachusetts-based Evergreen Solar Inc. (ESLR) reported fiscal third-quarter loss per share of 6 cents, narrower than the Zacks Consensus Estimate of a loss 8 cents. This was less than half as compared to the year-ago loss of 13 cents per share. Earlier, the impact had come from rock bottom average selling prices (ASPs).

In the reported quarter, Evergreen improved its manufacturing cost to $2.24 per watt from $2.70 per watt in the second quarter of fiscal 2009. Similarly, wafer manufacturing cost also fell to approximately 75 cents per watt from 85 cents per watt in the second quarter of fiscal 2009.

Evergreen clocked revenues of $77.7 million in the reported quarter, compared to $63.8 million in the previous quarter and $22.1 million in the year-ago quarter. Product sales for the quarter were $75.5 million while royalty and fee revenues were $2.2 million. Gross margin rose to 9.7% in the reported quarter from 1.9% in the prior quarter and 5.7% in the year ago quarter.

Operating loss reduced to $6 million in the reported quarter from $22.1 million in the year-ago quarter. However, in the reported quarter, the company absorbed a charge of $79.4 million for the write-down of its investment in the Sovello joint venture. As a result, net loss for the reported quarter escalated to $82.4 million from net loss of only $24.6 million in the year ago quarter.
Read the full analyst report on "ESLR"
Zacks Investment Research

Zacks Industry Outlook Highlights: Evergreen Solar Inc., JA Solar Holdings Co Ltd., A-Power Energy Generation System, LDK Solar Company Ltd. and First Solar Inc. – Press Releases

Zacks Market Commentaries — Thu, 05 Nov 2009 12:45:01 +0000

For Immediate Release

Chicago, IL – November 5, 2009 – Zacks.com announces the latest Industry Outlook. Today, Zacks Equity Research discusses the Alternative Energy sector, including Evergreen Solar Inc. (ESLR), JA Solar Holdings Co Ltd. (JASO), A-Power Energy Generation System (APWR), LDK Solar Company Ltd. (LDK) and First Solar Inc. (FSLR).

A synopsis of today’s Industry Outlook is presented below. The full article can be read at http://www.zacks.com/stock/news/26898/Alternative+Energy.

Alternative energy stock prices generally rise and fall in direct proportion to the price of crude oil. While in times of high oil prices this may present an opportunity, it also increases volatility in the sector.

Industry-wide excess solar cell and module capacity have led to stockpiling across the board. As a result, we think the performance of companies such as Evergreen Solar Inc. (ESLR), JA Solar Holdings Co Ltd. (JASO), A-Power Energy Generation System (APWR) and LDK Solar Company Ltd. (LDK) -- burdened as they are with high inventory levels -- will remain under pressure in the near term.

Germany, one of the prime solar markets with a lucrative subsidy program, is considering a roll-back of its grants. This will affect companies such as First Solar Inc. (FSLR), who generate a substantial portion of their sales from Germany.

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5510.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5511.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Contact:
Mark Vickery
Web Content Editor
312-265-9380
Visit: www.zacks.com

Zacks Investment Research

Alternative Energy – Industry Outlook

Zacks Market Commentaries — Wed, 04 Nov 2009 22:00:18 +0000

OUTLOOK

The Alternative Energy industry is going through a recovery after absorbing the global recession and the cascading fall in global crude oil prices. Earlier this year, quite a few alternative energy companies were in the trough. Though these companies have recovered from their lows, their valuations are still significantly lower than their 52-week highs.

The growth of alternative energy companies is closely tied to the fortunes of the economy. In its latest release, the Energy Information Administration (EIA) predicted that total U.S. electricity consumption will decline by 3.3% in 2009 before growing by 1.3% in 2010 as the improving economy coaxes a gradual recovery in electricity sales. In fiscal 2008, annual U.S. photovoltaic (PV) installed capacity grew by 63% year-over-year, bringing the cumulative installed capacity to 792MW.

According to the Solar Energy Industries Association (SEIA) -- the U.S. trade association representing close to 500 companies in the solar energy industry -- Germany ranked first followed by Spain, Japan and U.S. in terms of cumulative installed solar electric power as of year-end fiscal 2008. However in fiscal 2008, Spain (2.46GW in 2008) beat Germany (1.86GW) in terms of new installations. World solar PV installations reached a record high of 5.95GW in 2008, representing growth of 110% over 2007.

According to the European Photovoltaic Industry Association (EPIA) -- the world industry association for solar photovoltaic electricity market -- the cumulative global installed PV capacity stood at almost 15GW, compared to only 9GW in 2007.

OPPORTUNITIES

Environmental Advantage: Solar power is one of the most benign electric generation resources. Solar cells generate electricity without air or water emissions, noise, vibration, habitat impact or waste generation.

Fuel Risk Advantage: Unlike fossil and nuclear fuels, solar energy has no risk of fuel price volatility or delivery risk. Although there is variability in the amount and timing of sunlight in the day, season and year, a properly sized and configured system can be designed to be highly reliable while providing a long-term, fixed-price electric supply.

Locational Advantage: Unlike other renewable resources such as hydroelectric and wind power, solar power is generally located at a customer’s site due to the universal availability of sunlight. As a result, solar power limits the expense and energy losses associated with the transmission and distribution from large-scale electric plants to the end users. For most residential consumers seeking an environment-friendly power alternative, solar power is currently the only viable choice as it can be sourced in urban and rural environments.

Subsidy Programs: Governments, most notably that of China, have increased their financial support for solar projects. China is aiming at increasing its installed solar power capacity to 2GW by 2011 from 140MW capacity at the end of fiscal 2008. To fulfill this objective, the Chinese government offers 50% of the cost of investment of solar power projects. For solar projects in remote areas, the government subsidizes 70% of the project cost. A company under our coverage benefiting from this move includes Solarfun Power Holdings Co. Ltd. (SOLF).

Through the American Reinvestment and Recovery Act (ARRA) passed in February 2009, the U.S. Treasury Department has implemented a program to issue cash grants in lieu of the investment tax credit for renewable energy projects. Recent focus on renewable sources will greatly benefit green crusader companies like Rentech Inc. (RTK). Also, the Department of Energy (DOE) in the U.S. has implemented a loan guarantee program to help developers obtain financing for solar power projects.

WEAKNESSES

Recent Start-ups: A large number of alternative energy companies are recent start-ups with limited resources. As such, quite a few depend on their customers’ ability to finance solar projects.

Global Recession: The global economic crisis has affected alternative energy sales and earnings growth. Weakness in the debt and equity markets, for as long as it lasts, will raise costs of capital for firms in this emerging sector and may hinder project financing, working capital requirements and new research and development.

Fortune Tied to Crude: Alternative energy stock prices generally rise and fall in direct proportion to the price of crude oil. While in times of high oil prices this may present an opportunity, it also increases volatility in the sector.

Excess Capacity: Industry-wide excess solar cell and module capacity have led to stockpiling across the board. As a result, we think the performance of companies such as Evergreen Solar Inc. (ESLR), JA Solar Holdings Co Ltd. (JASO), A-Power Energy Generation System (APWR) and LDK Solar Company Ltd. (LDK) -- burdened as they are with high inventory levels -- will remain under pressure in the near term.

German Roll-back: Germany, one of the prime solar markets with a lucrative subsidy program, is considering a roll-back of its grants. This will affect companies such as First Solar Inc. (FSLR) and SunPower Corporation (SPWRA), who generate a substantial portion of their sales from Germany.Zacks Investment Research

Evergreen Solar Inc. (ESLR) Opens Berlin-Based Headquarters to Strengthen European Presence

QualityStocks — Mon, 26 Oct 2009 20:25:21 +0000

Evergreen Solar Inc. has emerged as a recognizable figure in the solar power industry. The company develops, manufactures and markets String Ribbon™ solar power products for residential and commercial applications around the world. The solar manufacturer today announced the recent opening of its Europe-based headquarters in Berlin, Germany, which is expected to extend the reach [...]

SunPower Surpasses, Trims Outlook – Analyst Blog

Zacks Market Commentaries — Mon, 26 Oct 2009 19:55:23 +0000

SunPower Corporation (SPWRA) has reported third quarter earnings of 28 cents per share, a penny above the Zacks Consensus Estimate of 27 cents. However, the company trimmed its outlook for fiscal 2009. The company revised its revenue guidance for fiscal 2009 to be in the range $1.43 - $1.5 billion from the earlier guidance range of $1.35 - $1.7 billion. Likewise, the company revised its earnings of share (EPS) guidance range for fiscal 2009 to 50 - 60 cents from earlier guidance range of 45 - 90 cents.

SunPower’s top line rose to $466 million in the quarter from $298 million in the second quarter of 2009 and $378 million in the third quarter of 2008. In the reported quarter, its Components and Systems segments generated 64% and 36% of revenues, respectively.

In the reported quarter, SunPower reported GAAP gross margin of 19.1% and operating income of $34.6 million. GAAP net income per share for the reported quarter includes $5.3 million -- or 3 cents per share -- of non-cash interest charges regarding interest expense on convertible bonds. On a non-GAAP basis, the company reported total gross margin of 20.7% on operating income of $52.1 million. Of this, the Components segment non-GAAP gross margin was 23.4% and Systems segment gross margin was 16.0%.

SunPower more than doubled its cash hoard in the quarter through the issue of long-term debt. Sequential cash balance rose to $472.1 million from $202.3 million at year-end fiscal 2008. Long-term debt also rose to $188.9 million from $54.6 million at year-end fiscal 2008.

The results may well be an indication of what’s coming before the big names in the solar space -- Evergreen Solar Inc. (ESLR) and First Solar Inc. (FSLR) -- declare their numbers. At present, taking into account SunPower's leadership in cell conversion efficiency and rapidly falling panel manufacturing cost, we believe a premium valuation is justified. Thus we maintain our market Outperform rating on the shares.
Read the full analyst report on "SPWRA"
Read the full analyst report on "ESLR"
Read the full analyst report on "FSLR"
Zacks Investment Research

Evergreen Solar (NasdaqGM: ESLR) Announces Opening of New European Headquarters in Berlin

Dawn Van Zant — Mon, 26 Oct 2009 13:00:00 +0000

MARLBORO, Mass. and BERLIN - October 26 2009 - Evergreen Solar, Inc. (NasdaqGM: ESLR), a manufacturer of String Ribbon solar power products with its proprietary, low-cost silicon wafer technology, today announced that it has opened a new European headquarters in Berlin, Germany

Zacks #5 Rank Additions for Tuesday – Zacks Tale of the Tape

Zacks Market Commentaries — Tue, 13 Oct 2009 12:23:23 +0000

Here are the stocks added to the Zacks #5 Rank ("strong sell") List today:

Alexandria Real Estate Equities Inc (ARE)
American Commercial Lines Inc (ACLI)
Ameren Corp (AEE)
Arris Group Inc (ARRS)
Assisted Living Concepts Inc (ALC)
Astec Industries Inc (ASTE)
Blackrock Kelso Capital Corp (BKCC)
CapLease Inc (LSE)
Cascade Bancorp (CACB)
Cheniere Energy Inc (LNG)
Ciber Inc (CBR)
Community Trust Bancorp Inc (CTBI)
EnPro Industries Inc (NPO)
Evergreen Solar Inc (ESLR)
Fair Isaac Corp (FICO)
First Industrial Realty Trust Inc (FR)
Frontier Oil Corp (FTO)
Genomic Health Inc (GXDX)
CGG Veritas (CGV)
Heritage-Crystal Clean Inc (HCCI)
JA Solar Holdings Co Ltd (JASO)
MDC Partners Inc (MDCA)
Merit Medical Systems Inc (MMSI)
Mitcham Industries Inc (MIND)
On Track Innovations Ltd (OTIV)
Pacific Continental Corp (PCBK)
Panera Bread Co (PNRA)
Patriot Capital Funding Inc (PCAP)
Realty Income Corp (O)
Ritchie Bros. Auctioneers (RBA)
SBA Communications Corp (SBAC)
SeaBright Insurance Holdings Inc (SBX)
Stanley Furniture Company Inc (STLY)
Sunstone Hotel Investors Inc (SHO)
Telefonos de Mexico SA (TMX)
TransDigm Group Inc (TDG)
Tree.com Inc (TREE)
Universal Display Corp (PANL)
Vasco Data Security International Inc (VDSI)
ViaSat Inc (VSAT)

Evergreen Solar, Inc. (ESLR.OB) Launches New Line of Solar Panels for the Off-Grid Market

QualityStocks — Fri, 11 Sep 2009 16:51:27 +0000

Evergreen Solar, Inc. is a young company that has been gaining national attention with its STRING RIBBON solar products that feature proprietary, low-cost silicon wafer manufacturing technology. Today, Evergreen took a major step towards enhancing its future with the announcement that they are going to introduce its new ES-C Series solar panels. These [...]

Solar Stocks News – Evergreen Solar (Nasdaq: ESLR) Launches New Line of Solar Panels for the Off-Grid Market

Dawn Van Zant — Fri, 11 Sep 2009 13:00:00 +0000

MARLBORO, Mass. - September 11 2009 - Evergreen Solar, Inc. (Nasdaq: ESLR), a manufacturer of STRING RIBBON solar power products with its proprietary, low-cost silicon wafer manufacturing technology, today introduced its new ES-C Series solar panels, designed to substantially expand the company's offering for the global off-grid market.

Seven New Alternative Energy Stocks Added; Three Stocks Deleted from Ardour Global Alternative Energy Index in Quarterly Rebalancing

Stuart T. Smith — Wed, 09 Sep 2009 13:52:35 +0000

NEW YORK, Sept. 9 /PRNewswire/ — The Ardour Global Alternative Energy Index(SM) (TICKER: AGIGL) will add seven new components, effective 6:00 PM (EDT) Sunday, September 20, 2009. Three stocks will be deleted from the index, changing the number of index components to 113. The changes result from the quarterly rebalancing of the index. Additions to AGIGL [...]

The Sun is Rising

QualityStocks — Thu, 27 Aug 2009 20:36:19 +0000

Most people associate solar power with photovoltaic cells used to generate electricity, or perhaps solar water heaters, or even large solar power plants, where the heat of the sun is used to produce steam which runs turbines to produce electricity. It’s easy to forget that most other energy sources also trace back to the sun. [...]

SunPower Lighting the Candle of Hope – Analyst Blog

Zacks Market Commentaries — Fri, 24 Jul 2009 14:34:59 +0000

SunPower Corporation (SPWRA) showed signs of revival in the second quarter results. Sales of $298 million beat sequential number by about 39% and crossed the consensus expectation by $34 million.

EPS of $0.24 during the quarter almost doubled the Street apprehension of $0.14. SunPower also improved the upper end of its revenue outlook for 2009 to $1.35 billion – $1.7 billion from $1.3 billion – $1.7 billion. We expect the company to cross the $1.3 billion mark with EPS of $0.68 in fiscal 2009.

Revenues got a 75% lift sequentially in the Components segment along with stable Systems segment. The Components segment got a strong headwind from the Residential and Light Commercial customer segments, especially from North America and Germany.

SunPower more than doubled its cash hoard through the issue of equity and convertible debt in May 2009. Sequential cash balance rose to nearly $456.8 million from $202.3 million.

The results may well be an indication of what’s coming next Thursday, when the big names in the solar space, Evergreen Solar Inc. (ESLR), Hoku Scientific, Inc. (HOKU), and First Solar, Inc. (FSLR), declare their numbers.

SunPower has lost more than a third of its shine since the inception of the fiscal. At present, the company is trading at a discount to its comparable peers in terms of price-to-book, price-to-sales, and price-to-CF multiples. However, taking into account SunPower's leadership in cell conversion efficiency and rapidly falling panel manufacturing cost, we believe a premium valuation is justified. Thus we maintain our BUY rating on SPWRA.
Read the full analyst report on "SPWRA"
Read the full analyst report on "ESLR"
Read the full analyst report on "HOKU"
Read the full analyst report on "FSLR"
Zacks Investment Research

SmallCapSentinel.com: Looking for the Next Alternative Energy Breakout

Stuart T. Smith — Wed, 17 Jun 2009 13:50:25 +0000

LAS VEGAS, June 17, 2009 (GLOBE NEWSWIRE) — Last week’s breakout in price and volume for emerging solar company GWS Technologies (OTCBB:GWSC) sent a ripple through the small cap alternative energy market with CEO’s and investors alike asking themselves, which deal is next to gain the favor of the market? In looking at the week [...]

Evergreen Solar In Depth – Analyst Blog

Zacks Market Commentaries — Mon, 01 Jun 2009 17:30:59 +0000

Evergreen Solar - ROE & FCFE Analysis

The growth potential of the solar industry as a whole -- and Evergreen Solar (ESLR) in particular, with a geographically diversified contractual backlog -- remains a compelling story. Positive factors include ongoing expansion programs over the next few years, improving operating efficiencies and technological upgrades.

However, continuing near-term earnings losses due to high start-up costs, significant capital expenditures, oversupply of solar modules, absence of deep pockets unlike its peers and earnings-dilutive stock issuances may present risks to the near-term share price upside potential.

From 2003 through 2008, as the company recorded net earnings losses since inception, stockholders suffered from negative annual returns-on-equity (ROE).

Historically, year-over-year, operating profit margins remained volatile and negative, while sales per dollar of assets and financial leverage exhibited relatively high volatility from one year to the next, where the company's cost of debt remained within a relatively narrow range of 8.9% to 10.1% over this multi-year period.

However, despite impressive annual improvements in operating profit margins, due primarily to capacity increases, increasing market share and gradual improvements in operating performance and price increases, the performance ratio remains negative.

Note 2007 witnessed higher earnings from Sovello, classification of R&D expenses and increasing manufacturing facility at Sovello, although net income improvements were more than offset by losses at other parts of the business. Lower ASPs and slower ramp time for cells and modules affected ROE in 2008.

ROE is expected to improve partially in 2009 with an all-around development precipitating through by higher online capacity.

Historically, relatively volatile and negative cash flow from operations (CFO), significantly increasing capital expenditures, and frequent significant debt service obligations resulted in volatile free cash flow to equity (FCFE).

FCFE improved significantly from 2004 to 2005, shifting from approximately negative $53 million to positive $43 million. However, the improvement was solely due to $110 million in new debt issuance during 2005. For instance, during June of 2005, the company issued convertible subordinated notes in exchange for proceeds of $86.9 million. But also in 2005, CFO improved year-over-year, as revenue, EBITDA and net income all improved moderately, primarily due to a 132% increase in research and development expenses in 2004.

On the downside, however, there was a 41% increase in labor costs in 2004, due to improvements of manufacturing technologies. In 2006, free cash flow to equity once again returned to negative $138 million on account of a near twofold increase in capital expenditures related to capacity expansion at Sovello.

In 2007, free cash flow to equity returned very nearly to a positive value on account of significantly increased and positive CFO due to the company's large order booking, order backlog and some additional new debt issuance.

In 2008, additional debt issuance fueled the majority of the $345 million in capital expenditures.

Going forward, we project the trend to continue on account of absence of outside debt during fiscal 2009.

Massachusetts-based Evergreen Solar, Inc. engages in the development, manufacturing, and marketing of solar power products worldwide, including solar cells, panels and photovoltaic systems. The company, through its crystalline silicon technology known as String Ribbon, offers solar modules which are used to generate electricity for on-grid and off-grid applications. These modules are designed for a range of solar electric power applications, including water pumping, communications, outdoor lighting, rural electrification, recreational vehicles, and stand-alone or grid-connected AC applications. The company sells its products through distributors, system integrators and other value-added resellers.

Read the full analyst report on "ESLR"
Zacks Investment Research

Zacks Analyst Blog Highlights: General Motors Corp., Evergreen Solar, Inc., AMAG Pharmaceuticals, Inc., The Boeing Company and Micros Inc. – Press Releases

Zacks Market Commentaries — Mon, 04 May 2009 13:24:52 +0000

For Immediate Release

Chicago, IL - May 4, 2009 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: General Motors Corp. (GM), Evergreen Solar, Inc. (ESLR), AMAG Pharmaceuticals, Inc. (AMAG), The Boeing Company (BA) and Micros Inc. (MCRS).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=4579.

Here are highlights from Friday's Analyst Blog:

On Bankruptcy & Banking

With the bankruptcy of Chrysler, and the potential bankruptcy of General Motors Corp. (GM) the bankruptcy code is very much in the news. Imagine for a minute, though, what would happen if the biggest single liability for these firms -- say, their legacy Pension and Health Care liabilities -- were by law not allowed to be touched by the courts. How much good could it really do?

Well that is the way it should be according to every single Republican and twelve Democrats in the U.S. Senate. No, not for big firms like GM, but for individuals.

The same day that Chrysler went "Tango Uniform," the U.S. Senate bowed to the pressure of the bankers' lobbyists and refused to allow mortgage cram-downs is bankruptcy courts. As Sen. Richard Durbin (D- IL) put it, referring to the bank lobbyists, "They own this place."

Evergreen Solar's Wider Loss

Evergreen Solar, Inc. (ESLR) announced financial results for its 1st quarter ended April 4, 2009.

Revenue for the reported 1st quarter of 2009 was $55.8 million, up 26% from $44.2 million in the sequential 4th quarter of 2008, and up 144% from $22.9 million in the year-ago 1st quarter of 2008.

AMAG Drug Nears Approval

AMAG Pharmaceuticals, Inc. (AMAG) reported first quarter 2009 financial resorts and recent accomplishments Thursday after market close.

Apparently, investors are not interested in its financial results; instead, they are more focused on the approval status of the company's lead anti-anemia drug Feraheme. In the news release and the conference call, the company disclosed that all outstanding issues pertaining to the manufacturing of Feraheme have been settled to the satisfaction of the FDA, and that a re-inspection of its manufacturing facility will not be required as a condition to approval of Feraheme.

Boeing Suffers Rating Cut

Fitch Ratings lowered to negative its long-term credit ratings outlook on The Boeing Company (BA) and its financial unit, Boeing Capital Corp.

Fitch said the long-term issuer default rating of A+ on Boeing and Boeing Capital Corp., along with other ratings, were supported by financial flexibility, large order backlog, and the company's balanced portfolio approximately equally split between defense and commercial.

Micros Beats on Lower Revenues

Micros Inc. (MCRS, Hold) released its fiscal Q3 results yesterday. Revenues were sharply lower at $205.7 million, versus our and consensus expectation of $227 million and $222 million, respectively. Non-GAAP EPS was impressively higher at $0.32, compared to our estimate of $0.27 (consensus was at $0.28).

EPS upside was largely a result of cost-cutting measures, while the revenue shortfall was attributed to weak restaurant business. The stock is up around 10% in trading today.

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=2649.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=2677

About Zacks

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Contact:
Mark Vickery
Web Content Editor
312-265-9380
Visit: www.zacks.com

Zacks Investment Research

Evergreen Solar’s Wider Loss – Analyst Blog

Zacks Market Commentaries — Fri, 01 May 2009 16:11:33 +0000

Evergreen Solar, Inc. (ESLR) announced financial results for its 1st quarter ended April 4, 2009.

Revenue for the reported 1st quarter of 2009 was $55.8 million, up 26% from $44.2 million in the sequential 4th quarter of 2008, and up 144% from $22.9 million in the year-ago 1st quarter of 2008.

Gross margin during the 1st quarter of 2009 was 1.2%, down compared to 4.6% for the 4th quarter of 2008 and 33.6% for the 1st quarter of 2008. The decreased gross margin from last year was due to lower average selling prices and lower fees from Sovello.

The net loss for the 1st quarter of 2009 was $64.3 million, or -$0.40 per share, including charges of $43.9 million for the write-off of a loan receivable and related interest from a future silicon supplier, $3.5 million of facility start-up costs for the second phase of Devens and Midland string factory, and $1.8 million of on-going costs associated with the closure of the Marlboro pilot facility.

The comparable net loss for the sequential 4th quarter of 2008 was $52.1 million, or -$0.32 per share, including charges of $23.1 million for the closure of the Marlboro pilot facility, $9.7 million of facility start-up costs for Devens and Midland and $8.0 million for the write-off of certain research and development equipment. By comparison, the net loss for the comparable 1st quarter of 2008 was $25,000.

For the first quarter of 2009, Evergreen Solar produced 18.2 MW, more than double the 8.5 MW produced during the sequential 4th quarter of 2008. The company sold 17.3 MW at an average selling price of $3.13 per watt compared to $3.39 per watt during the 4th quarter of 2008.

Management projected that although Evergreen Solar may still meet its 2nd quarter 2009 production goal of approximately 30 MW, softness in demand due to tight credit markets and uncertain economic conditions will likely result in production and sales volume of 20 MW to 25 MW.

The capacity expansion of the company's Devens facility apparently remains on the original schedule that established in the summer of 2007. The company still expects to have the capacity to produce approximately 40 MW per quarter at Devens by year-end 2009 and to achieve target manufacturing costs of approximately $2 per watt at that production level.
Read the full analyst report on "ESLR"
Zacks Investment Research

Evergreen Growing Year-Round – Analyst Blog

Zacks Market Commentaries — Tue, 24 Mar 2009 14:57:16 +0000

Evergreen Solar to Grow Forever-Green Portfolios

We continue to like the Evergreen Solar, Inc. (ESLR) story, with its $3 billion and 1GW contractual backlog, and the growth potential for the solar industry in the aggregate. ESLR's current share price valuation appears relatively under-priced at 20.0x and 4.6x, respectively, our projected 2009 and 2010 EPS estimates, which presents a significant opportunity given high long-term growth expectations.

Meanwhile, many of ESLR's comparable public companies continue to trade within a wide and volatile range of price-to-sales multiples. (Note that other meaningful positive fundamental financial metrics such as current-year earnings and cash flow are not yet widely achieved within the alternative energy industry, and therefore render comparable public company comparisons less meaningful.)

Looking ahead over the near-term, on the upside, we support management's long-term focus on capacity build-out and technological enhancements, rather than striving for optimal near-term results.

In other words, Evergreen remains well positioned within the high-growth alternative energy industry to eventually deliver solid financial results -- given significant new multi-year poly-silicon sales contracts, increasing manufacturing throughput, improving operating efficiencies through the use of quad ribbon technology, in-progress capacity expansions, and potential additional benefits by way of normalized silicon pricing whereby prices may drop if/when additional capacity comes online.

We also expect the company to benefit as it increases capacity through its Sovello partnership and reduce expenses through new production methods and technologies. For example, the JV-partnerships with REC and Q-Cells at Sovello are expected to ensure that long-term expansion programs stay on course and continuous R&D will help make the company technologically superior to its peers. Given prevailing bearish market conditions, the date of the Sovello IPO has not yet been set.

Over the long-term, with strong long-term growth potential, we expect the recent trend of significant new contract announcements to help offset the history of negative earnings and operating cash flow to date.

Nevertheless, we note again that ongoing earnings losses, charges due to closure of the Marlboro Pilot Plant, start-up costs at Devens, an ongoing legal dispute with Barclays, high capital expenditures and expectations of continuing significant earnings dilution, partially restrain more significant near-term upside potential.

Furthermore, uncertainty surrounding the long-term alternative energy policy in the U.S. may present downside risk, rendering the earnings loss recovery period longer than expected.

As with most alternative energy companies, ESLR is currently valued entirely on very optimistic future expectations, and if the company is able to deliver on these expectations and the solar power industry evolves globally as expected, ESLR may be a great long-term investment.

Accordingly, we maintain our BUY recommendation with a 6-month target price of $2.00, or 25.0x and 5.7x our projected 2009 and 2010 EPS estimates, respectively. Price appreciation to our near-term valuation target represents 25.0% upside potential.
Read the full analyst report on "ESLR"
Zacks Investment Research

Evergreen Solar Inc. (ELSR) Adds another Stream of Revenue, Signs Quad Furnace Licensing Agreement with EverQ GmbH

QualityStocks — Wed, 15 Oct 2008 16:10:51 +0000

Even though the “modern” solar power manufacturing and marketing sector has been around for 30-40 years, it is still considered a new business development area. Today’s technologies, involved in generating power from the sun, bear little resemblance to those of the 1970’s. Today’s solar power systems have taken technology to the next step, offering increased [...]

Good News for Solar Stocks

Sean Brodrick — Wed, 24 Sep 2008 18:31:41 +0000

US Senate Passes Solar Tax Credit Bill
Energy Conversion Devices, Evergreen Solar Inc. and Akeena Solar Inc. surged after the U.S. Senate passed a bill that would extend tax credits on solar power installations through 2016.

Evergreen Solar (ESLR) shares in the $5 range

Eric Cheshier — Thu, 11 Sep 2008 17:50:30 +0000

Evergreen Solar, Inc. (NASDAQ:ESLR) is looking like a prime Value Play at current levels. Evergreen shares have been cut in half since late June and hitting new 52-week lows all week. At a time like this, their catch phrase really means something - Think Beyond.