the more downstream they have, the less revenue and less earnings. However based on the Q3 transcript they will be including downstream as sales. Too much downstream and they miss earnings. Even though they should not be measured that way. SUNE is working on having no solar revenue, but will have some, they miss estimates each Qtr. Looking back at the trading action in11/20 Q3 when JKS beat big on earnings and light 40mw on revenue, it traded bad on earnings day, but recouped big on 11/21. Looking at options, there is a big open interest on the $20 Puts, 2000 contracts, trading last at .70 which is big bets on a miss. Someone early Fri on stocktwits said there is a 11% move in either direction based on options.
correction...Q3 earnings were in line at.71 when subtracting a $25m tax benefit. And revenue from down stream will NOT be recognized as revenue.
Kingfrog, the partnership is now in place. JKS picked up about $891 million for the about 713 MW that were done at the end of Q4. This is a wash because it cost about $891 million to build the plants, however JKS will save interest which will more or less offset the 45% loss in income from selling power. However, JKS will pick up about $7 per share before taxes on the 45% of the plants it now doesn't own. Even thou JKS loves to under state everything, I don't think JKS will have a choice but to state the gain given the taxes. I think the people with the puts will be put out and out of the money.
Sentiment: Strong Buy
I'm not sure hat your talking about, partnership. On large projects I thought they used percentage complete so revenue can be recognized on several Qtrs
- 2015 installations is going to be way bigger than 2014
- Chinese govt are really serious about controlling air pollution and will be massively investing in renewables
- DG is more profitable than utility scale, so the Chinese solar will become more profitable.
- Demand for solar is increasing around the globe, specially India where domestic companies can meet 10-15% of the projected target. Most of the panels will come from China.
- The major solar companies are already sold out for the first 1/2 of the year.....expect capacity increases.
- The valuations of JKS, TSL is extremely cheap (PE 1/3 of Sunpower). The forward PE is much lower than current PE showing the undervaluation. If they miss earnings it's already priced in.
- 2015 will also be the year where Yieldcos will be launched by JKS, TSL and going forward they will have a lor more projects to drop than FSLR or SUNE or SPWR.
The stock price can be easily manipulated based on the number of shares. So don't get manipulated into selling these think of the long term potential for these stocks given what is going on in the world.
Sentiment: Strong Buy
Surprised at the lack of trading in premarket...well with the exception of the shorts trying to manipulate the price with their repeated bombs thrown at the Ask
They have no honor. This company just earned $1.00 in a quarter. There are companies that trade 100x more than this that strive to make that in a year.
This is a very bullish report. Demand is strong and profitability and margins continue to expand.
I don't know what the obsession is with the shorts. They could make way more on the long side if they stop the biased reports and comments and stop playing technical games with the stock.
They have dropped the share price by 75 cents with three trades of 25 shares each.....they are trying to force a downward movement....we will see what happens when the real traders show up
It appears to be a good report, but deferred revenues are hard for the market to digest. Much of their sales are to its own downstream projects. If their accounting is correct, this is the most undervalued solar stock.
they did everything they said they would. Guidance was great, year over year a big increase. The only negative that Gordon Johnson will jump all over is hooking up to the grid.
See report by Shuli Ren
104-minute-long documentary on air pollution was aired in China over the weekend.
Given the timing of the documentary and the official response, analysts now speculate environmental protection will be an anchor theme at the National People’s Congress this week. See my earlier blog “China’s Foul Air In Focus Ahead Of The National People’s Congress“.