Are you looking to make some money or a lot of money? I don't want this stock to just make it a few dollars above where it is right now. I want it competing neck and neck with First Solar. To do that it must remain in the game. Our management knows that. Survival is a must. Cash flow is the brige over troubled waters. It will give us the means to survive. This increase in authorized shares will do several things for Evergreen. It will give us cash, leverage,and options. Leverage can help us acquire another smaller operation(sovello for example), more shares can help us acquire supplies at a lower cost and keep us in the game. A secondary offering is a scene as a neutral sign coming from a growth company. Evergreen is definately growth. If this company wasn't growing I would not vote yes. As Captain Jack Sparrow would say, "with the proper leverage anything is possible." Why make just a little bit of money when you can make a killing? Who's with me?
I'm not with you on this one. The increase in shares will do only one thing; it will give this management team another few months to fleece investors and line their own pockets. They have demonstrated lack of vision and poor execution for too long. It's time for a change!
Anybody on-board with that?
Elle, I have also not decide about "yes" or "no".
But what I have already decided, I will not vote "yes" until the company will clarify exactly the destiny of the money.
I didn' see the sale forecast, I didn't see the order intake.
The unique tools we (shareholder) have in order to take the decision is balance, profit & loss, cash flow sheets + a 1hour meeting of the last quarter + a proxy with very poor details.
And of course we (shareholders) need to be sure about this money will not be part of incentive plans or something like that, because it will be not fare pay more incentive with net income negative.
They know how to create huge Write-down Q after Q.
Look at the recent Q, past several, sequential Q and even next coming Qs.
Dream on .... it might go BK if it does not have cash to burn.
JIMO and looking back and forward of the Qs.
Cash Flow huh? - notice a pattern?
Holy negative cashflow Batman !
Management could care less if the shares are diluted. They will just issue themselves more free shares at the diluted price.. God forbid they use their own money to buy in like every other sucker long.
hundred million more dollars to sipen off to dirty contractors and shady schemes.
Turn a profit..
Hi Elle, I won’t vote yes unless I get confirmation that the funds from any dilution will not be used to pay executive bonuses and secondly if they would set a floor limit for the share price before they would consider dilution (if it was done at our current level it would put us on the pink sheets and scare off any institutional investors). Also I want to know if a convertible debt offering was considered (to me that makes a lot more sense than diluting at this level).
It would be nice if they came out with firm proposals of how any funds raised in such a way would be used example: $XXXX would be spent on planned expansion, we expect to need $XXXX in working capital etc.
I am still waiting to hear back from Mike in customer relations… if I do not hear back from him I will assume the worst and vote no.
The reason they are paid in shares is because they can make more money else where. To gain people with the knowledge and drive as well as keep them we must pay them. Shares keep them motivated and on track.
Thanks, elle...but my problem with this proxy vote for increased shares is the TIMING of it. Unless there is an imminent problem that requires cash flow that was not mentioned at the conference, it seems like a very poor time when the stock price is so low, sapping the equity of many shareholders. As lcdrball and others have pointed out here, a rational reason for such an offering (in spite of the stock price issue) might be a struggle to resist a hostile takeover. In which case, if our ultimate interests are indeed the long term value of our holdings, would it not be relevant to know with whom that struggle is taking place?
Ok. You want to talk about timing. Timing is a very important variable in any game. As you know, I am a scout. A scout is always prepared as well as a good business plan.
I believe management is doing that. Being prepared. Just because they are asking share holders to authorize more stock doesn't mean they must use it. They most likely will use some of it. They will only use it if they need it. If they dilute my shares they are also diluting their own. Hence, I would argue there is a imminent problem. In fact, I would argue there are several. They are time, debt and the economy. Evergreen got out of the gate later than other solar companies with less money and flexibility for they didn't have a parent company to pay their bills. As for the debt, debt will stand in anyones way when looking for additional loans. They are getting money from MA (5 Million)which is not that much. They have another source lined up to get a loan but it is much easier to do a stock offering. Anyway, if they get current debt off of their books they have more options and the stock price will begin to rise.
3rd Quarter report page 30 states:
"We believe that our business plan will provide sufficient liquidity to fund our planned capital programs, our share of any potential funding requirements related to our investment in Sovello and our operating needs for the next 12 months. While our business plan anticipates certain levels of potential risk, particularly in light of the difficult and uncertain current economic environment and the continuing reduction of industry panel pricing caused by emerging competition, especially from China, and the resulting excess capacity, we are exposed to additional particular risks and uncertainties... (They list the risks.) Although our current business plan indicates we have adequate liquidity to operate under expected operating conditions, the risks noted above could result in liquidity uncertainty. Our plan with regard to this uncertainty includes...
If additional capital is needed and does not become available on acceptable terms, our ability to fund operations, further develop and expand our manufacturing operations and distribution network or otherwise respond to competitive pressures would be significantly limited."
Again that is on page 30.
By the way, elle, I have not decided to vote "no"...I just feel the need for more information in this decision process precisely because I, like you, have invested in this company to make a LOT of money, and therefore feel that such decisions are best made deliberately and for good reasons.