Read the latest interims.......just make sure that you are sitting down.

Ask the company's auditors!

wall street tumbling yet again which, unless there is a late recovery, must surely reflect in london tomorrow ..... having glanced at today's posts here, the figures sound far from brilliant, so i would be quite surprised if, one way or another, SOLA does not take a bashing .... we shall see

Hedgehunter -so amusing.

Had another deeper look at the results yesterday and apart from promises of higher production capacity by the year end everything else is very negative, indeed if you compare it to the quarter before you will find that key indicators are slowing up or in fact have gone backwards.

NB, by the year end aswell the big US competitor (mentioned earlier in the thread) will be swinging into production.

for all that, sp has remained very stable today relative to many others.

It is surprising that so many are very positive about sola and can quote the figures as if they have gone through with a magnifying glass plus Merrill Lynch etc giving fair value as 8 plus. If they go for a nasdaq quote they will have to issue shares as there are so few in free float--if they didn't do this and went for nasdaq the price would go ballistic!! this would certainly help the funding of expansion etc. It baffles me that some can look at the same picture and see only doom and gloom!! I'm married to one--and I'll never understand it!!!

Those accounts are doom and gloom Im afraid to say MP.

Sooner or later it will be found out. It cant float upwards on puffery for ever.

Competition starting to surface, no barriers to entry in the market for sola...

Silicon supplier prepares float
07/06/2007

Oxford-based PV Crystalox Solar, a supplier of highly sought-after silicon to the solar panel industry, is expected to join the LSE's main board in a flotation valuing the business at 524 million.

Chief executive Iain Dorrity, who along with other management owns 84 per cent of the shares, hopes to raise a total of 210 million. The company will receive only 50 million of this, with the remainder allowing existing shareholders to sell down their stakes.

The company has been operating in the sector for over 20 years and has been profitable for the last five, selling the majority of its silicon ingots to Japan, with the balance processed into wafers at its plant in Germany. Said Dorrity: PV Crystalox Solar has a strong track record in a sector that is experiencing strong growth, and the IPO will give us the ability to take advantage of the opportunities available in our markets.

JPMorgan is sponsor, financial adviser and sole bookrunner to the float, which sees first dealings pencilled in for 11 June. The shares, priced at 130p, may see some support based on the success of Chinese silicon recycler Renesola, up tenfold since its float last summer.

Oliver Haill

" may see some support based on the success of Chinese silicon recycler Renesola, up tenfold since its float last summer. "

'Nuf said.!!!!!

I see that solar provider Yingli Solar (think the ADR is Yingli Green) floated on Nasdaq this morning - could be worth watching?

You're working up quite a head of steam on this one goldhedger. It's clearly not a stock which you find attractive. So whey keep bleating here. Why not move on, unless...you're shorting it?

Is that what you're doing?

GF has slated this stock for months, whilst watching it slowly growing into a mamooth. Shorters have came and gone, and still it grows at a steady rate.
Ever-increasing staff and production facilities are being financed from incoming cash.
I know 'nowt, but I do know that GF would have been a damned sight richer than he is at the moment, ( claims to be a millionaire.? ) if he had bought in at the float of SOLA instead of adopting his usual stance of sitting on the fence. His 'arse must be getting sore by now.!!

Hmm a slip of the key board it would seem from the above poster....

kitosdad - 10 Jun 2007 14:48 - 1064 of 1064
Ever-increasing staff and production facilities are being financed from incoming cash.

Obviously meant to say being financed from borrowings

and lets not forget the bond issue represents 10% of the whole companys market capitalisation. Once the price is hit, just work out the dilutive effect and the forward P/E ratio..................way way overvalued.

goldfinger, I've been watching PV Crystalox Solar and bought in today. Looks like a nice one for the ISA again for medium term gains. And it hasn't moved much from float price.

" ONE of Aims bright and dazzling stocks has been ReneSola. The solar panel maker floated at 79p in August and in February struck a breathtaking high of 639p. ReneSola has defied all those investors who have poured criticism on Chinese companies. It also stands out from others on the market as it has a market capitalisation of about 550m a valuation large enough to qualify for entry into the FTSE 250. "

GH, Ill have a further look, cheers.

Reply I gave to one of the more prominent bulls of this stock this morning on another board....

If you check the cash flow statement again you will find that the spending you refer to is included in INVESTING ACTIVITIES and quite rightly is a negative figure (17,642)and is cash used for capital building of the business, but if we look at the cash flow on OPERATING ACTIVITIES ie, the day to day operations of the business we find that there is a net outflow of cash of (8,540) and this as been the case in the last four quarters which clearly shows SOLA does not generate cash and thats why its needed to borrow and raise cash in the last 12 month or so.

Increasingly worrying also is the number of debtor days which is piling up as is also inventory levels.

The company as only $96,746 net assets which is about 48 million but yet trades on the market at a market cap of 550 million which is a 1045% premium to its assets, which quite frankly is perverse. Yes companys especially growth companys should trade at a premium to assets, but this figure is totaly ludicrous and makes the company way way overvalued.

The crunch point will come if it reaches the 5.88 conversion rate on the bonds which were issued to aid growth and reduce the problems of the net cash outflow.

The bonds only yield 1% per annum and in uncertain markets like we have at present I can see the institutions cashing them in immediatly which would result in a 10% dillutive effect on the companys market cap. This coupled with increasing tax charges will push the rolling P/E of 34 to extreme highs which could not be justified.

The daily rags can blather away as much as they like they are there to sell sensationalism but the facts are that this company does not generate cash, is way overvalued and in my opinion will become a big sell in the very near future.

Morgan Stanley said: Given a strong growth outlook for the coming quarters, we maintain our overweight rating on the stock.

Bloody hell.!!!!!! Have MS made a big mistake going overweight in SOLA.?

I wish Morgan Stanley would make their minds up

6 June 2007, 4.55pm

Stock market investors should brace themselves for a massive sell-off to rival that of the dotcom bust at the beginning of the decade.

That was the claim made today by Morgan Stanley, which is urging clients to begin reducing their exposure to the stock market or risk notching up huge losses. The US broker says three key warning indicators have begun flashing a 'full house' sell signal for the first time in eight years.

>> FTSE crash warning

Chief European equities strategist Teun Draaisma warns the mid-cycle rally is over and the triple warning is a 'very powerful' signal that has been triggered just five times since 1980.

He points out that interest rates are rising and reaching critical levels. His model is forecasting a 14% correction over the next six months, which would leave the FTSE 100 index almost 1000 points below current levels. But he warns it could be even more serious than that.

Morgan Stanley's MSCI index of 600 European and British equities dropped by an average of 15.2% over six months after each 'full house' signal, with falls of 25.2% after September 1987 and 26.2% after April 2002.

Draaisma's model is a composite valuation that divides the price-earnings ratio of companies by bond yields.

'It measures median share prices that capture the froth of the merger boom, rather than relying on a handful of big companies on the major indexes,' he explained. 'Investors are taking far too much comfort from global liquidity.'

Not far to go now for the 5.88 bond redemption price.

Thats when the fireworks will start.