LIke many here I find myself waiting for a buyout offer of ESLR by anyone. One fly-in-the-ointment I see though (and correct me if i'm wrong) is for Evergreen to be attractive to another company it would need to provide either relatively near-term profits or increased production ability that the buying co. could benefit from. Profits don't yet exist, and it's questionable when or if they ever will be. Production is being moderated,and is sold-out for several years anyway. So until increased production from the chinese deal is available (atbest a year) wouldn't that put off any potential buyouts for some time, and leave this stock trading sideways at best?
SPWRA is a potential buyer, since they source 1/3 of all ESLR modules. There is a glut of Si PV product out there though, and both companies are cutting back production. Not the obvious time to buy, but perhaps it is. The ESLR stock price is low, and SPWRA just acquired $400+MM in cash for unspecified reasons.
Companies do not have to wait for another to be profitable to find them an attractive buyout candidates. Most buyouts happen when they are not profitable. Unprofitable companies can be bought at pennies on the dollar. ESLR has revenue growth, a buyout company would find that very attractive. It is up to the buyout company to turn it into a profit center.
I can see that. So, do you have an idea of likelyhood and timing of a buyout? Originally, I thought one was imminent(by mid 09)and in the $5-6 range, now ??? That would be one hell of a premium. Selling for less though, would seem to be out of desperation and a last resort.
who will want to buy ESLR? there is an over capacity out there. the buyer earns more capacity which he cannot sell. the ribbon tech is of no importance now with silicon at 67-75$ per Kg and falling. in fact, any price below 100$ per Kg for silicon and the ribbon tech is break even with regular silicon tech for the efficiency is a bit less.
this company is on it's own. time to stop winning and start taking out (the shareholders) out of the mess.