They say every dog has its day. Sunpower, after being neglected for so so long, is now a top volume play. Stock price firming up fast. NOw 26 cents. Anyone knows the story tho>?
Sunpower stock has fallen to below 30-cent level .... It has a decent set of 2Q results with orderbook now at rmb1.19 billion.
For the half year in 2011, the Group recorded a 35.9% increase in 1H2011 revenue to
RMB454.2 million and 20.5% increase in 1H2010 net profit after tax attributable to shareholders of RMB36.4 million.
hey abb, 4 months on, Sunpower is back at 24 cents. What happened?
Have just read Phillip Securities long report on Sunpower.
Says:
While most China companies are now experiencing margin problems due to labour cost,
Sunpower is managing it very well. When one is almost beyond peers (remember, in our
previous report, we highlighted that it believes it is second to Coek Engineering in quality but
delivers faster than Coek), one can dictate margin to a substantial extent.
Applying the 11.2% discount to our forecast cash-flows of Sunpower until 2020, we revise
down our target price to S$0.375. This equates to a BUY, with an upside of 63%.
[hr]
[abb 19-04-2011]:
two postings below ---Sunpower was at 26 cents? holy cow, this stock is now at 42 cents.,
not sure what its business is about except making all those energy saving systems and special systems for heat transfer.
On the surface, Chan Wai Chee's article is a negative one, criticising the Sunpower management for not doing enough to enhance shareholder value -- ie, boost the stock price. The underlying premise, however, is interesting, namely, this is a great business -- it's just that the stock market doesn't know enough of it and its story is not sold hard enough by the Sunpower management. In better times, Sunpower is worth a lot more than the measly 22 cents currently.
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