Piper Jaffray Comments On Solar Companies Exposure To Lehman Brothers Collapse (SPWR, ESLR, JASO)
More News related to CSIQ
- Beacon Equity Issues Technical Trade Alerts on Market Movers: PGOG, MRVL, CSIQ, PESI, TXRH, BBND
- Solars Rocketing Higher as Crude Gains (FSLR, SPWRA, LDK, more..)
- Unusual 11 Mid-Day Movers 11/21: DISK, LGND, SOLR, AU Higher; BGP, BHS, FL, MED Lower
- Solars Rise as Merrill Downgrades First Solar (FSLR), SunPower (SPWRA)
- Morning Movers 11/21: Citigroup (C) Bounces After Relentless Selling, Autodesk (ADSK) Lower On Results
More News related to ESLR
- Morning Movers 11/21: Citigroup (C) Bounces After Relentless Selling, Autodesk (ADSK) Lower On Results
- David Moenning's Daily State of the Markets: 11/18
- Notable Analyst Rating Changes 11/18: CHS, CBRL, MDTH, DIS Upgraded; KO, PEP, K, DT, ESLR Downgraded
- J.P. Morgan Downgrades Evergreen Solar (ESLR) to Underweight
- JA Solar (JASO) Blows Up Solar Stocks Today After Weak Results/Guidance (SOL, SOLF, ESLR, STP, FSLR, MORE...)
More News related to JASO
- JA Solar Provides Statement on Lee R. Ellenburg III Class Action Suit
- Izard Nobel LLP Announces Class Action Lawsuit Against JA Solar Holdings Co., Ltd.
- Coughlin Stoia Geller Rudman & Robbins LLP Files Class Action Suit against JA Solar Holdings Co., Ltd.
- Holzer Holzer & Fistel, LLC Announces Investigation Into JA Solar Holdings Co., Ltd.
- CEO of JA Solar to Present at Barclays Technology Conference Dec. 10
More News related to Analyst Comments
- Citadel Down 13% in November And 47% For The Year
- What's Next for Google Stock? $200 or $400? (GOOG)
- Ford's (F), CEO, Alan Mulally, Addresses Capitol Hill
- General Motor's (GM) CEO, Wagoner, Addresses Capitol Hill
- SanDisk (SNDK) Falls After Toshiba Said No Buyout
Piper Jaffray analyst Jesse Pichel commented on solar stocks today related to exposure to the Lehman Brothers (NYSE: LEH) bankruptcy.
The firm noted that SunPower (Nasdaq: SPWR), Evergreen Solar (Nasdaq: ESLR) and JA Solar (Nasdaq: JASO) are all negatively affected by the Lehman bankruptcy with respect to prior convertible bond transactions and stock lending agreements. The firm said it would be prudent for investors to assume the worst case scenarios.
On JA Solar, Pichel said, "We estimate JASO would realize ~4% dilution on stock and incur a non-cash write off of $7M for the book value of the capped call, and also write off a $100M investment in a LEH vehicle."
On Evergreen Solar, Pichel said, "ESLR worse case scenario – lose the $39.5M premium if the capped call transaction with Lehman is not replaced, as well as dilute share count by 30M (~25%) without getting anything in return for the dilution."
On SunPower, Pichel said, "worse case scenario – 2.9M (~3%) share dilution."
Pichel said the downside is fully priced into shares of SPWR and JASO given only limited potential dilution. Pichel said he does not believe Yingli Green Energy (NYSE: YGE), Canadian Solar (Nasdaq: CSIQ), and Suntech Power (NYSE: STP) are impacted by Lehman's bankruptcy filing.
Related Categories
Analyst CommentsStocks Mentioned
-0.22
+0.00Related Entities
Comments
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
Evergreen is quite OK
Richard Kerver on Sep 16, 2008 07:22 PMThese comments by Jesse Pichel are irresponsible. Evergreen Solar held a conference call Monday evening on their exposure to Lehman. They received proceeds of $325.8 million for the capped call trade of 30 million shares, and have those funds on account for completion of their Devens plant, which is up and running and has panel output. ESLR is on target and is not hampered by Lehman. Please try to get your facts straight and try responsible journalism.