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First Solar, Inc. Message Board

  • solarrun solarrun Jun 12, 2013 8:40 AM Flag

    The secondary offering should be a very positive move

    This is my perception so far:
    1) The secondary offering is for pre-arranged investors through investment houses and not for open market
    2) The offering price will be determined in the next few days, most likely the closing price of a particular date. An example of the proceed was calculated based on the closing price of 56.4 at Jun 10, meaning no discount given to the pre-arranged inverstors?
    3) The proceed will primarily be used to expand their business through projects acquasitions and financing new projects

    Please correct me if I am wrong but if I understand it right, this is all very positive and stock price should recover very quickly.

    Sentiment: Strong Buy

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • Positive or negative? Looks like 46 is neither a floor nor a celling - stock not moving with the market today.

    • FSLR has changed their business model from just a manufacturer to an energy supplier via leases. They will incur initial expenses getting the panels installed and up and running, but I see the future revenue stream (some of the leases are for 20 years) as very positive. Five years from now, they could be more like a utility, perhaps even paying a dividend.
      As for the offering, it is just a printing press for FSLR. They can sell those shares at any time that they want, for what ever they can get. I think that if you can buy them for $45, you will do very well in a few years.
      This may be a buying opportunity, but you may not be buying the new shares, you may only be purchasing the shares of those who panicked and sold.

      Sentiment: Hold

    • It's a shelf registration, FSLR can wait years for the right price. Buy the dip.

    • It plans to use the proceeds from the sale for general corporate purposes, very important point you missed. General corporate purposes, shows FSLR is having major problems. If FSLR was using the proceed for projects acquasitions and financing new projects, we could talk about how the secondary might be a positive move.

      • 1 Reply to seadog.seadog
      • You might want to read the official statement in detail and not stop at the first phrase:

        First Solar intends to use the net proceeds from the offering for general corporate purposes, which may include acquisitions of under development photovoltaic solar power system projects, investments in photovoltaic solar power system projects that will be jointly developed with strategic partners and capital expenditures or strategic investments to develop certain business units and expand in new geographies.

        Sentiment: Strong Buy

    • It will likely price at close of biz today with a discount range of -3 to -5% depending on how the stock trades today. Usually existing shareholders will get preferential allocation given they are being hurt by the dilution. Hedge funds who are short FSLR will try to get allocation but likely if there is strong demand by existing holders, then they won't get much. The drop in the share price usually signals a bottom. Look at DDD which did a 2ndary a month ago at $39. The stock rallied for 3 straight days following the dip. So basically...BTFD.

42.35+1.45(+3.55%)Dec 17 4:00 PMEST

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