Stock Market News & Stocks to Watch from StraightStocks » Schwarzenegger

Renewable Energy Producers Applaud Governor’s Decision to Veto SB 14

Dawn Van Zant — Mon, 14 Sep 2009 13:00:00 +0000

SACRAMENTO - September 14 2009 - Independent Energy Producers (IEP), which represents California's renewable energy providers, today said Governor Schwarzenegger's decision to veto SB 14 "keeps California moving toward a cleaner, greener, more renewable energy future."

Arnold Flexes Some Breathing Room – Analyst Blog

Zacks Market Commentaries — Tue, 16 Jun 2009 14:25:27 +0000

In an attempt to give everyone a bit of additional breathing space, Governor Schwarzenegger recently signed a bill to impose another 90-day moratorium on foreclosures in California. This may benefit some financial institutions that will be closing their respective quarterly books in two weeks, to include (but not limited to) Wells Fargo (WFC), Bank of America (BAC), US Bancorp (USB), City National (CYN).

Apart from some lenders outside of California that have installed voluntary foreclosure freezes, foreclosures are on the rise. Losses appear to have approximate $125,000 per home early this year.

Unfortunately at this point of time the Administrations new plan announced last week does not actually stop any foreclosures. This plan, while allowing for mortgage modifications, the reduced payments are only temporary and will reset in 5 years, which does not truly deleverage the consumer.
Read the full analyst report on "WFC"
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The Triple Crown of Financial Catastrophes

Bill Bonner — Wed, 10 Jun 2009 20:09:27 +0000

pThe Markets Crash, Depression and Hyperinflation - The Triple Crown of Financial Catastrophes./p pWhat a great time to be an economist!/p pYesterday was another dull day in the markets. The Dow was steady. Oil rose a buck. Gold went up $3./p pBut there’s nothing dull about the economic news. Already, we’ve been able to see things we never thought we’d see. It’s as if our strange neighbours had invited friends, and even some animals, over for a night of fun – and left their curtains open./p pSo far, we’ve seen a stock market crash and what looks like the beginning of another depression, already marked by the biggest bailouts and nationalizations in history. We’re getting an eyeful! And with a little luck, we’ll probably#8230;/p

A Seven-Decade Low for GM

Bill Bonner — Wed, 13 May 2009 23:07:54 +0000

pUSA, General Motors and the state of California all to go Bankrupt/p pAs GM goes#8230; so goes America#8230;/p pUh oh#8230;/p pStocks rose yesterday; the Dow went up 50 points. The bear market rally is still on. Oil touched the $60 mark#8230; a sure sign, say analysts, that the global economy is picking up. And the dollar fell further#8230; to $1.36 per euro. Gold held steady, at $912 an ounce./p pWhile most stocks advanced yesterday, General Motors (NYSE:a href="http://www.dailyreckoning.co.uk/economic-forecasts/usa-general-motors-bankruptcy-54564.html"GM/a) backed up./p pThe experts say the company is going broke. “Chapter 11 looms,” says a Bloomberg report. Investors sold the stock down to $1.15 – a price GM hasn’t seen in more than 70 years. At that price you can buy the whole company for $700 million. Peanuts.#8230;/p

Clean Energy Sees New California Low Carbon Fuel Standard as Benefit to Natural Gas Vehicle Industry Growth

Dawn Van Zant — Mon, 27 Apr 2009 13:00:00 +0000

SEAL BEACH, Calif. -- April 27 2009 -- The State of California's Air Resources Board yesterday adopted a regulation to implement Governor Schwarzenegger's Low Carbon Fuel Standard calling for the reduction of greenhouse gas emissions from California's transportation fuels by 10 percent by 2020.

Economy Down Gold Up, Stock Advice, Stimulus Bill to be Signed, Retail Forecast and More!

Contrarian Profits — Wed, 18 Feb 2009 17:15:16 +0000

pGold booms after global strife, Byron King on whether the precious metal is still a buy#8230; Stimulus bill a done deal, details of the final 1,073-page fiasco#8230; States in peril, revenue crash causes budget crisis from California to New Jersey#8230; Wal-Mart surprises Street, Rob Parenteau on retail’s sudden comeback#8230; Stocks dive toward new crisis lows, equity advice from Mayer and Buffett#8230; Plus, have you noticed? One major index quietly up 30% YTD#8230;/p p class="BodyCopy" align="left" strongSo how’s the financial world faring so far this week?/strong One chart should set the scene: /p p class="BodyCopy" align="center"/p p class="BodyCopy" align="left"A seven-month high for our favorite metal may be sign that investors are losing faith in…. umm… everything. In fact, gold is up 33% since October, making it one of the planet’s finest asset#8230;/p

Positive Developments for the Renewable Energy Industry

QualityStocks — Mon, 22 Dec 2008 16:33:03 +0000

This year has been a big win for those who have been rooting for a larger renewable energy industry and reduced dependence on carbon based fuels. There have been several initiatives, legislation, and events that are expected to invigorate the growth of solar, wind, and other alternative energy markets. – In October, the 30-percent Federal [...]

Solar Industry – Our Take on Legislative Outlook, First Solar (Nasdaq:FSLR) and LDK (NYSE:LDK)

Small Cap Pulse — Wed, 19 Nov 2008 12:29:00 +0000

November 19, 2008 - Solar stocks to a hit on Tuesday on comments from J.P. Morgan’s Christopher Blansett about the potential for reduced subsidies for solar in Europe. Blansett said that 2008 may he thinks 2008 was a peak for solar energy subsidization and recommended First Solar (Nasdaq:FSLR) as a “safe haven.” We disagree with Blansett’s assessment and timing. We think his assessment is doesn’t account for the legislative realities in place in the U.S., Japan and Europe. And we think his timing to call for instability in solar stocks is extremely late. Here is our take: Blansett clearly isn’t impressed by Governor Schwarzenegger’s mandate for 33% renewable energy contribution in California, the potential impact and long-term stability in the U.S. market provided by the eight-year solar tax credit extension, and the expectation that Obama’s administration will likely accelerate the passage in Congress of a federal RPS. We think these dynamics alone, in the U.S. can more than offset any instability in European subsidies. Moreover, new government incentives in Japan will also have an impact next year. Japan has seen strong legislative support for solar and its government is re-implementing incentives, targeting 70% of newly built houses to have solar panels by 2020. Japan has earmarked 9 billion yen ($92 million) for solar panels for households in this year to March 2009. Japan's Ministry of Economy, Trade and Industry is seeking 24 billion yen ($246 million) for subsidies in the year starting April 2009, and estimates that about 100,000 homes would install solar panels next year, with the subsidy. We mentioned above that Japanese solar manufacturer, PV Crystalox is ramping guidance, not cutting it. And Kyocera (NYSE:KYO) last week announced it is building its second solar plant to double its output in three years to meet growing demand. While France is proposing a plan to double the amount of energy provided by solar power and other renewables by 2020. The French government said it would seek tender offers by the end of this year to build at least one solar power plant for each of its regions by 2011 with aggregate capacity of 300MW. The current incentive program in France includes € 30c/kWh feed-in-tarrif for residential rooftop applications and € 55c/kWh for BIPV applications. The government is now planning to provide € 45c/kWh for large commercial installations, and intends to raise solar power output to 5,400MW by 2020 from less than 50MW in 2007. Its previous targets were for 3000MW of solar power by 2020. France’s target for renewable energy consumption by 2020 is 20%. And the EU has increased its target to 23% by 2020. So we have to ask what Blansett is thinking when he makes such dour comments in the midst of what appears to us to be pretty remarkable legislative support in the U.S., Japan, France and the EU. Add to this the dynamic in the industry which is expected in the midstream (module oversupply) and upstream (more polysilicon production coming online) in the next year and it seem to us that prices are going to come down, making solar a more attractive solution to the end customer. Meanwhile, efficiencies will only get better. Regardless, the mood in solar on the Street remains remarkably negative and, adding to the negative mood - MEMC (NYSE:WFR) lowered its guidance. The lowered guidance from MEMC exacerbated concerns that the solar industry will face stronger headwinds amidst a weak economic environment, with tighter financing conditions slowing down projects, or halting them altogether. But again, there is plenty of good news out there, which, unfortunately just keeps getting overlooked. Pace PV Crystalox increasing its guidance; LDK (NYSE:LDK) affirming its guidance and announcing another impressive supply deal this past week; and Suzlon considering entering the solar business because the India opportunity looks so attractive. We do agree that the industry will feel the pressure of the global financial meltdown on some level. Companies with weaker balance sheets and higher cap ex requirements will be challenged to maintain their plans for expansion, and perhaps even operationally. But there are plenty of companies operating in the solar sector with strong balance sheets, strong cash flow and high visibility through long-term contracts. We agree that First Solar (Nasdaq:FSLR) is a juggernaut, but can’t agree that it is a “safe haven” for solar stocks inasmuch as, on a peer basis, it still strikes us as being pretty expensive at a P/E of 32x (ttm). We are forecasting First Solar’s revenue for 2008 at 1.22 billion with net income of $317.2 million, and revenue for FY2009 at $2.1 billion with net income of $588 million. In the current markets valuations in the solar sector have declined substantially with many leaders such as LDK Solar holding P/E ratios against current year forecasts well below 10x and against FY09 earnings less than 7. We don’t think that First Solar’s business is so much more insulated than the rest of its peers so as to justify multiple valuations of four to five times the group. In which case, we would assign target P/E multiples to First Solar of 20x and 15x fiscal years 2008 and 2009 respectively, which are still twice the premium as its peers, and this would bring us to a target price against FY2008 projected earnings of $78 and a target price against FY2009 projected earnings of $108. So at yesterday’s closing price of about $110, we think the stock is still expensive. To be sure, there is much to like about the company. It is the leader in thin-film. It continues to find ways to reduce cost per watt and its margins are impressive. All of these factors suggest a premium to its peers. We just think the premium needs to be reasonable. On the other hand, a stock that we think is way oversold, which represents relatively less risk than its peers and substantially greater upside, is LDK Solar. Our forecast for its FY2008 revenue is $1.8 billion, and net income of $324 million, and for FY2009 our forecast for revenue is $2.9 billion with net income of $580 million. At yesterday’s closing price of $14.89, the stock is trading at a PE (ttm) of 5.4 and a P/S (ttm) of 1.54; against forecasted FY08 results it is trading at a P/E of 4.89 and P/S of 0.88; and against forecasted FY09 results it is trading at a P/E of 2.73 and P/S of 0.55. We think the company’s growth rate, its strong balance sheet (about $490 million in cash) and access to credit (another $500 million or so available on credit line), and its leadership position warrant more compelling multiples. At a reasonable 10x current year earnings (still half the premium we suggest First Solar warrants, and a third of the premium First Solar is currently getting), our implied stock target would be $30. Ultimately the markets will stabilize and valuations across the board will appreciate back to historical ranges (the S&P historical P/E estimates are about 14 to 15x) and we think this should start to happen at some point around mid-2009. At a 15x our projected FY2009 earnings for LDK, the stock would be trading at $81. So we think there is distinct upside in the stock at current levels, and that the risk has more than been factored in. Important Disclosure: SCPEditor does not hold any position in First Solar, MEMC, PV Crystalox or Kyocera, and it is LONG LDK. The information and trades provided here and in the comments are for informational purposes only and are not a solicitation to buy or sell any of these securities. Investing involves substantial risk and you should evaluate your own risk levels before you make any investment. Past results are not an indication of future performance.

Hedge Fund California

Richard C. Wilson — Sun, 17 Aug 2008 18:28:56 +0000

Hedge Fund Guide - California

Guide to Hedge Funds in California

Here is a short guide collection of articles on the hedge fund industry in California. I am always looking for more valuable online tools and resources to add to these geographical hedge fund guides to the hedge fund industry. If you have a white paper or PowerPoint that I can include here please send me an email and I will post it for everyone's benefit.

If you are looking for specific details on San Francisco please see our recently published Guide to Hedge Funds in San Francisco.

Pension Fund Investments in California. This ppt presentation (created by RREEF Alternative Investment) illustrates the insufficiency in investment in California’s infrastructure, while advocates the potential awards from these funds if they were properly invested
Article: After a heated controversial debate, the California Department of Corporations announced that California is abandoning a proposal that would have to require certain California investment advisors, such as hedge fund and private equity, to be registered with the State’s regulator. This measure ensured that California will remain one of the few states (along with New York and Connecticut) that would not require hedge funds to be registered with that state’s securities regulator.
Article: “The hedge fund striptease”
This article features some of the concerns and issues of setting up a Hedge Fund practice in the State of California. Some of the questions include: What are the Minimum Financial Requirement and procedure for setting up the fund? What are some criteria for accepting the potential hedge fund investors? And what is the process to become a Registered Investment Advisor (RIA)?
Excellent TIME article “Finding a way out of the hedge fund maze”
California governor Schwarzenegger’s proposal of creating a retail rebate program that aims to pour 3.2 billion dollars into the development of solar energy industry in California has spurred interest among numerous hedge funds to invest in the solar industry and other related areas.
Article: California has backed away from a controversial proposal that requires any hedge funds, which were not already been registered under SEC, to be registered under the California government. Due to this proposal, many funds have threatened to relocate to another state if California government passes the regulation law.
Hedge funds to invest in California’s energy
This brief guide explained how to start a hedge fund business within the United States, especially within the States of California, Delaware, Connecticut, Illinois, New Jersey, New York, and Texas, which all have relatively lenient regulation laws in comparison to other States. The article touched topics from legal development process to promotional strategy to geographical difference in setting up funds. This is a helpful guide if you are looking to start a hedge fund in California.
Article: “Hedge funds look to snap up abandoned land in California”
This article touches on the recent development and trend of hedge fund investments in the Green Energy market; include biofuel commodity trading, solar energy industry, carbon trading, and renewable energy credit trading, etc. Many hedge funds within California and the west coast are starting up or currently offering carbon trading or energy related funds.
Great article describing new California regulations might push existing hedge funds out of the state

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San Francisco hedge fund employment opportunity
Los Angeles hedge fund employment opportunity
Hedge fund employment opportunity in California

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