SunPower Gains Most in 10 Months on Factory Partner (Update2) May 27, 2010, 4:55 PM EDT
By Christopher Martin
May 27 (Bloomberg) -- SunPower Corp., the second-biggest U.S. manufacturer of solar power modules, climbed the most in 10 months after forming a joint venture with Taiwan’s AU Optronics Corp. to complete a $700 million solar cell factory in Malaysia.
SunPower jumped $2.40, or 22 percent, $13.20 a share in Nasdaq Stock Market composite trading. The gain was the biggest since July 24. The shares have dropped 44 percent this year.
SunPower and AU Optronics will each contribute half the cost of the plant, which will be able to produce up to 1,400 megawatts of solar power cells a year when complete in 2014, the San Jose, California-based company said today in a statement.
“This allows SunPower to reach its module cost target of $1 per watt on an accelerated schedule,” said Sanjay Shrestha, an analyst at Lazard Capital Markets in New York. “SunPower will continue to command a pricing premium of about 25 percent versus conventional silicon players.”
This is the reason they raised all the additional capital and ballooned the balance sheet. Seems all the analysts have nothing but praise for this deal. I made a great deal of money back today, patting myself of the back for buying $11 calls yesterday, but I still need the stock to move back up to the mid teen level to be back where I was at only recently.
I did buy an additional 500 B shares $11.70 a few minutes back, paid for with yesterdays $11 call purchase...if I sell 'em.