From greentech media, Sharp is looking to sell off its project development arm Recurrent Energy. Recurrent has an existing solar portfolio of about 500 MW and a project pipeline of 2.5 GW. This is approximately the same as FSLR's existing projects and pipeline. The asking price for Recurrent Energy ? $321M. FSLR's market cap $1.8B. do the math.
"I never bought any puts below when the stock price was $17, I am not buried any position, my short is quite profitable (50% so far) and I am up on my Oct puts. I know you like to think I shorted at $11 but I didn't."
I distinctly recall you buying $15 puts right before the last earnings call. At the time it was trading in the 14s. In fact you were bragging that your $15 puts were up over 50%, then you held through earnings and they went straight to zero.
How much equity does Recurrent have on their balance sheet?? FSLR has $3.5 billion, afterall when you purchase a stock you are purchasing an interest in their equity. Just comparing pipelines to draw a conclusion on equity value is lacking any real substantive analysis.
A company that supposedly had a 2GW pipeline two years ago when Sharp bought them for $305 million. FSLR at that time had a share price of about $140 and a book value of about $12 billion, so the math is about a 5% increase in value over that time making FSLR now worth $12.5 billion or $150 a share?
Jake, right now I would not be long any solar company. The supply glut is just too deep, and there's no margins on new projects. With that said I would never go long FSLR - Once I am out at my target prices I will walk away. There is just no future in thin film. It had its window of opportunity and FSLR did a great of exploiting that window, but now its closing fast. CdTe just can't compete with silicon. Best of luck.
Even though we disagree, I really think you are cool. To be perfectly honest, I know absolutely nothing about the stock market. What I do know is that four years ago, I had the most supernatural experience involving FSLR when it was at 300. I get dreams EVERY night that I interpret. That is my 'gift.' But, the thing involving FSLR was just so awesome! Whatever the case, I do wish FSLR hits your target price. But, as for me, I am just a 'dreamer.' As it is said, "Wise people dream, but fools don't believe a darn thing." My target price for FSLR is 700. That is just insane. If I had not had the experience when FSLR was at 300, I would be thinking just as you do RIGHT NOW. LET FSLR SINK, SO I CAN BUY MORE! LET FSLR DIE, SO YOU CAN CASH IN. Why not WIN WIN? Best of wishes!