The Words of Level Headed Logic Sound - Warranty issue # 235 revealed
Your kidding me right? Dimonboy and Avian expects every warranty issue to be announced to shareholders? Come on!!! Avian thinks they have the "inside scoop"?? Give it a break!!!
So if anyone reads my old posts you know I worked for Alstom once and I know accounting (CPA certified). Ladies and Gentlemen (and true investors) - a project company does not and will not disclose every single warranty issue that comes along and announce to the public. If it is a game changer and "MATERIAL" to the impact of the financial statements - sure, but not every single event. My God, if Alstom had to disclose every single immaterial warranty item/issue that happened during my tenure, that would be all we did on our projects instead of doing our jobs. Guys, there is a process for reserving for these items. Avian, in my opinion, is playing with slightly unethical behavior. "THE SKY IS FALLING" mentality is just bad for the securities analyst industry as a whole when they don't understand what is required to disclose and what isn't and uses such small information to change their rating. They are trying to be the analyst who outed the company for withholding information that is going to sink them. They want to make a name for themselves (Like Gordon Johnson). The stock is obviously going to react of this foolish stuff because of so many investors who don't understand the stuff and get spooked (it is nearing Oct 31st). But traders love this crap and play it for all it is worth. The company has spoken.... it's not material and it was already evaluated in the warranty reserve last quarter. And if you guys think that there is a total of 2 warranty items known in the field, I am LMAO. The warranty reserve probably covers many company known issues that will never need to be addressed nor Dimonboy or Avian will never see.
In my opinion, Avian got the reaction they were looking for. They had their day in the sun..... until the company confirmed it was already included in the reserve. Ops....
putting this up so u can all call FSLR liars again and again, have fun. be sure to focus on the part that says 'not expected to have a significant impact on earnings'. and further please squabble about what exactly constitutes significant vs insignificant. oh and be sure to ignore the words 'may over time develop' since this has to be a big expensive problem causing immediate widespread failure that requires immediate complete attention to all 232k modultes.
Update: First Solar’s statement on the matter in its entirety is as follows:
First Solar has determined there are approximately 232,000 modules in the field, manufactured between October 2008 and June 2009, which may over time develop a loose cord plate attachment. We know the serial numbers of the affected modules and are working proactively with the system owners to repair or replace the affected modules consistent with our workmanship warranty. For roof-mounted systems we also will remove and replace the affected modules at no cost to the system owner, which is above and beyond our standard workmanship warranty. The issue is not expected to have a significant impact on earnings and was considered in the updated financial guidance for 2012 that we announced on August 1st.
So you mean tell me that that the issue with the junction box just happens to coincide with the modules produced during the same period as the "manufacturing excursion" which resulted in issues with module degradation ? Just a mere coincidence that they started using a new junction box at the start of the manufacturing excursion and stopped using it at the end of the manufacturing excursion. What a coincidence.
232,000 panels is not a minor thing. Do the math, it will cost $20M to replace those panels easy. And that's if the problem is only limited to the 2008-9 batch. Now, I can see why a degradation issue can be blamed on a manufacturing excursion like the did with the last quality issue. BUt not a junction box ? Nah, that 's not a manufacturing excursion. I find it highly unlikely that this issue is miraculously confined to the exact same batch of panels that also had a defect. Its an issue, its a risk, and it is material. You know how to tell when FSLR management is lying ? Their lips are moving. Remember they said the last issue was a one time event and then it went for another quarter - at least ? Remember when they side for the previous four quarters that they would meet earnings and they missed big ? Well, know they have former VP of Enron as the CEO - he learned well when he was there - deny, deny, deny - to the bitter end.
I give up. When you start saying management is lying... like in the connector issue... which by the way was also overblown. What proof do you have they are lying?? You would have 20 ambulance corporate chasing law firms filing stockholder lawsuits if there was any REMOTE evidence of management "lying".
I am telling you guys...ever friday..something bad/crap news comes out so, the shorts COVER! and buy in. Tech guys think this will test $22..its 50 Day moving average....get in first thing Monday! this will shoot back up 1 buck easily..to 21+
also, if we get positive news/new contracts...shorts will be forced to cover HIGH!