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ENERQ.PK Message Board

  • tradeinthezone tradeinthezone May 8, 2008 7:16 PM Flag

    Update after todays move

    Energy Conversion Devices (ENER) reported great earnings and revenue growth of 155% for the quarter. The outlook for the next year was extremely positive on the conference call – they are doubling production in 2009. I expect analysts to be raising estimates meaningfully and the stock to make a run toward, and probably through the all time high of $57. Energy Conversion is a maker of thin film solar just like First Solar (FSLR). I get the feeling that ENER is going to start being appreciated as a much cheaper and super fast growing solar company like FSLR (a mini FSLR). Looking at valuation comparisons…FSLR trades at 11.5x 2009 revenues and 48x ’09 earnings per share. ENER trades at 37x earnings and just 4.3x revenues (62% discount to FSLR). If we assume ENER can get to 7.5x revenues (still much less than FSLR), this would get the stock to $80. I am sticking with this stock for a continuation move after the +$14 day on Thursday. The breakout of the 2 year downtrend a few days ago worked wonderfully. I hope some of you also had the September $45 calls I have been writing about.

    Trade in the Zone blog

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