They already pre-announced revenues of $3.5 mln and a mind-boggling cash burn of $25 mln in connection with the offering in a SEC-filing last night.
As PLUG is in fact guiding for a record revenue quarter, revenues will have to be at least $21.5 mln so my early guess of between $15-20 mln looks clearly wrong. But again, if they had numbers above analyst estimates and progress in bookings and margins they would have put this in the press release. Still believe that revenues will come in substantially below analyst estimates and bookings and margins to disappoint.
Perhaps management should care for their business instead of going on bus tours.
Frankly I don't get why the shares are up on this news. Dilution will be above 30% including fees after all is said and done. Lincoln Park is the only winner here.
Dream on. They should have eliminated the dividend to save $100 mln annually. But of course that's bad for DRYS which desperately needs the cash. And they should ask DRYS to pay back their loan.
This offering is effectively a DRYS offering.
The company is burning cash like hell to acquire market share. Costs are projected to explode going forward. Sell
Use your brain at least this time. The sole reason he is buying shares is to ensure ongoing control over ORIG as the DRYS controlling share will most likely be diluted to below 50% in the offering.
There will be plenty of dilution for outside shareholders of course.
Well - it is all in the news. Just read it. They will file a pre-packaged chapter 11 and emerge soon after that as a healthier company. The old shares will be cancelled and for every 1,000 of your old shares you will get 31 new shares of the new HERO plus some free options to buy additional shares.
After that current bondholders will own 96.9% of the company and current shareholders will own the remaining 3.1%. That's it.
From Q4/FY14 report:
"The Company shipped 957 GenDrive units and had GenFuel installation sales associated with eight sites during the fourth quarter of 2014 compared to 279 GenDrive units and no GenFuel installation sales in the fourth quarter of 2013. Total revenue for the fourth quarter of 2014 was $21.5 million, comprised of $12.2 million for product revenue, $8.4 million for service revenue and $0.9 million for research and development (R&D) contract revenue."
So this time they shipped less units and I don't see 8.4 mln dollar in service revenue either. Add the revenue recognition issues and Q2 revenues might come in between $15-20 mln compared to analyst expectations of $25 mln.
Obviously Cantor Fitzgerald went straight to work :-) Very nice gain so far. Staying short here.
I bought 100k shares in after hours below $1.20. Analysts on the call seemed pretty much satisfied with the company's progress and the August back to school update was VERY encouraging. I am looking for some constructive analyst commentary tomorrow morning and even hoping for some upgrades (but that might be too early).
Frankly speaking I think you are an idiot. There are only $62 mln remaining of that convert and I don't believe today's holders are the same that bought the convert initially. It does not matter anyway. In fact the short interest in SOL has been at a six month low as of late (just below 6 mln ADRs) and has never exceeded 8% of the total outstanding shares during the last year.
So if someone got short at $10 he wouldn't care too much if the shares are doubling or even tripling from today's price to get his position covered. But actually this wouldn't be necessary anyway. Any potential hedges against the note have been long dissolved given the share price development over the last four years.
This kind of conspiracy nonsense pops up in every loser discussion on hundreds of message boards. Marketmakers, Investment Banks, Shortsellers, Hedge Fonds... they all are supposedly working against thousands of loser stocks at the same time. It is not that the companies didn't live up to expectations, of course.
Missing each revenue projection by a mile, burning cash like hell and now all of a sudden having to finance their customer's purchases. Even the remaining cash balance and quarterly cash burn are roughly the same here. It will be a tough race to chapter 11 but both will cross that line, no doubt about it.
The balance sheet continues to weaken as cash was down a whopping 20% qoq despite accounts receivables being down 33% and inventories up only slightly. On a more positive note the company overall debt decreased slightly and the company lowered their accounts payable by 15%.
On the call the company expected $100 mln in cash inflows from the sale of project assets but these proceeds will have to be used to re-develop the exhausted project pipeline - given the current market I don't think the company will be able to secure cheap outside project financing despite the recent central bank rate cut in China.
Q3 might show positive eps and even sizeable cash flows given the company's guidance for revenues, margins and project sales so trader's might want to position themselves shortly before the next earnings release.
Investors should continue to avoid the shares given their balance sheet, strategy and execution issues. When looking for exposure into Chinese solar names try market leaders like TSL or JKS. Even JASO looks like a good play currently given they buyout offer on the table.
another strategy change, projected revenues 35% below estimates