Sunpower aggressive plans are too much for wall street to ignore and the value this brings to CY. I believe it will happen and push shares above $20. I am hoping for $22 and then to unload the rest of my shares.
Institutional ownership already high, so only way for institutions to get in on CY, or increase holdings, is from other institutions. I agree this will drive price over $20, but follow simple_simon and me and take some profits but hold on to most of CY shares for further long-term growth. In mid-2004 (long before SPWR was on radar screens), TJ outlined clearly plans for SunPower to reach $1 billion in sales by 2008 (1/2 of CY's projected $2 billion in sales in 2008) and their story is still the same. As explained in CC, TJ doesn't plan on letting go of SPWR stake so the only remaining play on acquiring much of these future earnings is owning CY. But what do I know? <LOL>
I think institutions will pump CY regardless whether they already are high percent of float. We have 2 catalysts right now - 1) book value of SPWR and 2) future projected growth of SPWR to 300MW - this is 3X what was planned before. CY will sell NSE's. Anything they can do to crank some profits to their pathetic bottom line will be another catalyst.
I did let 40% of my shares go a couple weeks ago. I plunked them into AMD after I saw the horrible INTC report with more market share losses to AMD. AMD is my largest hold right now.
Frankly, there is a major obstacle on the roadmap.
$600 millions convertible bond with excercise price of $18.13 (roughly). If fully converted, that's 33 millions shares there. Of course, the company will improve its balance sheet by taking in $18.13 a share.
I think CY has the option to pay out 3/10 of it without striking. After June 20, CY also has the option to terminate the conversion right.
Well it is all depend on how CY's attitude on SPWR. Would they accept less control on SPWR?
After earning report, I feel more positive on SPWR, less positive on CY core. T.J. does talk like some old man, I am not impressed on Psoc's growth, though he claims a bright future.