JA Solar Holdings Co., Ltd. (NASDAQ: JASO) has issued a preliminary second quarter report revealing that the company’s gross margin is likely “to be in a negative low single digit range.” On top of that, a query from Australian-based Bronte Capital has called into question the financial reporting of Trina Solar Ltd. (NYSE: TSL), a query which the company rebuts. Other Chinese solar PV providers JinkoSolar Holding Co., Ltd. (NYSE: JKS), LDK Solar Co., Ltd. (NYSE: LDK), Suntech Power Holdings Co. Ltd. (NYSE: STP), and Yingli Green Energy Holding Co. Ltd. (NYSE: YGE) are getting bombed again today as well.

JA Solar notes in its announcement that the company shipped its targeted number of panels for the second quarter, but that price erosion has simply eliminated any profit. The company also notes that it sees “promising signs that both orders and volume shipments have increased.” JA Solar expects growing demand to stop the bleeding and the company expects “gross margins in the second half of the year to improve significantly from second quarter levels.”

This has been a common theme in the sector, but aside from such pronouncements, there is little reason to believe these based on fact, especially given the sharp downturn in the prognosis for the ailing global economy. Germany and Italy, historically the two largest buyers of solar PV, face a variety of Eurozone debt woes that are likely to get worse before they get better. The US economy is growing a snail’s pace and is unlikely to get much stronger in the second half of the year. How this situation translates into improved margins for solar PV providers is difficult to see.

The attacks on Chinese solar PV makers related to their accounting practices are also weighing down the sector, and it is reasonable to expect the attacks to continue. In this latest instance, Trina may not have done anything untoward, but combined with the recent resignation of one of the company’s directors, who was also the CFO at battery-maker A-Power Energy Generation Systems, Ltd. (NASDAQ: APWR), appearances are affecting reality.

In addition to the conflagration at First Solar, JA Solar has fallen nearly -10%, to $3.65, a new 52-week low. Trina has also posted a new 52-week low at $13.82. JinkoSolar set a new low at $15.51, LDK is down nearly -6.5%, setting a new low at $5.10, Suntech has posted a new low at $5.53, and Yingli is down more than -8%, posting a new low at $5.12.

After about 90 minutes of trading today, the DJIA is down more than -2.5%. The solar PV stocks add their own bad news on top of the collapsing Dow and the carnage only gets worse.

Paul Ausick

It is difficult to keep track of the contagion spreading among the Chinese solar PV makers, all pointing back to auditing issues. JA Solar Holdings Co., Ltd. (NASDAQ: JASO) replaced its CFO last week. Trina Solar Ltd. (NYSE: TSL) also had an independent director and head of its audit committee resign on July 10th. In that case, the director had recently resigned as the CFO of a Chinese battery maker, A-Power Energy Generation Systems, Ltd. (NASDAQ: APWR) following the resignation of A-Power’s outside auditing firm.

Other bad news, like a downward revision on revenues such as the one about a week ago delivered by ReneSola Ltd. (NYSE: SOL), adds more fuel to a flaming pyre. Apparently well-run solar makers are also getting punished. Suntech Power Holdings Co. Ltd. (NYSE: STP), Yingli Green Energy Holding Co. Ltd. (NYSE: YGE), and JinkoSolar Holding Co. Ltd. (NYSE: JKS) get burned as well. US-based First Solar Inc. (NASDAQ: FSLR) and SunPower Corp. (NASDAQ: SPWRA) are getting caught as well.

The operative word in that last sentence is “apparently,” because every new revelation of suspected hanky-panky in a company’s accounting shakes investors’ faith in the solar makers that have so far escaped the flames. Coupled with low expectations for shipments and revenues for the rest of this year and into next, solar stocks are withering.

LDK’s announcement has sent the company’s shares down nearly -6.5%, before they recovered a bit to around -6% at noon, trading at $6.13, barely within the 52-week range of $5.73-$15.10.

JA Solar’s shares are down more than -3%, to $4.45 after having come within two pennies of the bottom of the stock’s 52-week range, $4.34-$10.24.

Trina’s shares are down nearly -5%, to $17.54, within a 52-week range of $16.60-$31.89. Yingli shares are down more than -4.25%, at $6.89, after falling to a new 52-week low giving the shares a 52-week range of $6.77-$14.29.

Suntech shares are off about -1.3%, at $7.25, in a 52-week range of $7.05-$11.18. Shares in JinkoSolar are off less than -0.1%, at $23.93, in a 52-week range of $12.41-$41.75.

It is worth mentioning that so far none of the Chinese solar makers has restated revenues or earnings. But it’s very likely that most observers think that will be the next thing to happen. What was already a shaky summer for the solar stocks is turning into a nightmare.

Paul Ausick

The company announced today that it’s CFO was leaving to pursue other opportunities. This is just the latest change in the accounting operations at several Chinese alt energy firms. Trina Solar Ltd. (NYSE: TSL) saw Peter Mak, the head of its audit committee, resign yesterday. Mak also resigned recently as the CFO at A-Power Energy Generation Systems, Ltd. (NASDAQ: APWR), a Chinese battery maker. A-Power’s outside audit firm resigned two weeks ago. The company has delayed its annual report filing and its shares have been halted since June 27th.

Accounting and auditing issues have hit Chinese firms hard in the last few months following a number of concerns raised related to reverse mergers with US shell companies.

In addition to the CFO change, JA Solar announced an acquisition earlier this month of a wafer maker that was 70% owned by JA Solar’s chairman.  That deal might have raised some eyebrows because JA Solar got the wafer company for a premium of just 5%.

JA Solar’s shares put up a new 52-week low yesterday, and its new range is $4.34-$10.24. Shares closed at $4.56. In the pre-market this morning, JA Solar’s shares are off by just a penny. So far.

Paul Ausick

A-Power Energy Generation Systems (NASDAQ: APWR) Cut to Perform at Oppenheimer.
Athenahealth, Inc. (NASDAQ: ATHN) Cut to Market Perform at FBR.
Banco Santander, S.A. (NYSE: STD) Cut to Hold at RBS.
Blackrock Inc. (NYSE: BLK) Started as Outperform at Wells Fargo.
BioMarin Pharmaceutical Inc. (NASDAQ: BMRN) Cut to Neutral at UBS.
Bucyrus International (NASDAQ: BUCY) Cut To Neutral From Buy By Goldman Sachs
Fairchild Semiconductor International Inc. (NYSE: FCS) Started as Overweight at JPMorgan.
Leap Wireless International (NASDAQ: LEAP) Cut to Underweight at Piper Jaffray
Legg Mason, Inc. (NYSE: LM) Started as Market Perform at Wells Fargo.
Motorola Inc. (NYSE: MOT) Cut to Reduce at Nomura.
NetLogic Microsystems Inc. (NASDAQ: NETL) Started as Buy at Gleacher.
Research In Motion Ltd. (NASDAQ: RIMM) Started as Neutral at Nomura.
Southwest Gas Corporation (NYSE: SWX) Cut to Hold at Argus.
Stabucks Corporation (NASDAQ: SBUX) Maintained Neutral but raised target to $35 at BofA/ML.
Suntech Power Holdings Co., Ltd. (NYSE: STP) Raised to Buy at Auriga.
Trina Solar Ltd. (NYSE: TSL) Cut to Sell at Axiom.

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JON C. OGG

A-power Energy Generation Systems, Ltd. (NASDAQ: APWR)  Lowered its annual revenue guidance from $500 million to $310 million. As a result, shares are down 27% premarket on heavy volume.

Charming Shoppes, Inc. (NASDAQ: CHRS) is up 4.6% on light volume after reporting better-than expected 3Q losses.

Mercer Insurance Group, Inc. (NASDAQ: MIGP) is up nearly 50% after the company announced plans to merge with United Fire & Casualty (NASDAQ: UFCS).

Omnivision Technologies, Inc. (NASDAQ: OVTI) is up nearly 9% on moderate volume, thanks to a 3Q revenue report that beat expectations.

Sodastream Internation Inc. (NASDAQ: SODA) is on our list for the second consecutive day. Shares of SODA are up 3.5% after a 20% drop yesterday.

TICC Capital Corp (NASDAQ: TICC) is down 2.5% premarket on heavy volume, a day after TICC’s IPO.

-Michael B. Sauter

ARM Holdings plc (NASDAQ: ARMH) is soaring on speculation that Apple may make a bid on the company.  Be advised that there have been rumors on this one before, so this is not a totally new rumor.  The ADRs are indicated up over 13% at $13.29 on 175,000 shares.

A-Power Energy Generation Systems, Ltd. (NASDAQ: APWR) reported that its net income soared on one-time gains and it also lifted its forward guidance from operations.  Shares are trading up over 10% at $8.14 on over 30,000 shares.

Alkermes, Inc. (NASDAQ: ALKS) saw some very unusual options trading activity yesterday ahead of two investor presentations this week and an FDA review later this year.  No share volume has been seen so far this morning, so this may have just been a single bet.

Anadarko Petroleum Corporation (NYSE: APC) is trading up over 6% at $37.15 this morning on almost 500,000 shares.  This follows unusual options trading yesterday coupled with yesterday’s huge $8.00 loss to a $34.83 close to a 52-week low.

BP plc (NYSE: BP) is trading up after it said that it sees no justification for yesterday’s 16% drop in its ADRs.  There were options trades down in the $7.50 to $15.00 Strike price put  options with the June month expiration, bets for a bankruptcy or some further massive implosion.  Shares are trading up 9.4% at $31.96 on well over 7 million shares so far.

JA Solar Holdings Co., Ltd. (NASDAQ: JASO) is trading up after it signed a deal with Energy research Centre of the Netherlands where the two will join efforts to introduce high efficiency photovoltaic modules.  JASO shares are trading up 3% at $4.38 on over 20,000 shares.

Lululemon Athletica Inc. (NASDAQ: LULU) is up marginally after it beat its Q1 earnings estimates with $0.27 EPS vs. $0.21 expected from Thomson Reuters and revenues rose almost 70% to $138.3 million versus expectations of $128.2 million.  Shares are up 0.6% at $39.33 on only about 12,000 shares.

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JON C. OGG

Twitter has, by most estimates, 75 million visitors a month, which makes it one of the largest social networks in the world. All major media companies are on Twitter and some have more than one million Twitter users.

24/7 Wall St. will look at the Twitter posts at Reuters Biz, WSJ, Financial Times, CNN Money, MarketWatch, CNBC, and 24/7 Wall St. each day to see which stocks are most frequently mentioned. It is clear that in this area of social media these tweet are a sign of which companies the Twitter universe is interested in. These financial sites are followed by a combined 625,000 Twitter users which makes them a sizeable sample of Wall St.’s interests. In some cases, we will publish the actual tweets from the sites.

Among the daily top trending  symbols on stock twitter aggregator StockTwits are ARCA biopharma (ABIO), Palm (PALM), First Solar (FSLR), MGIC (MTG), PolyOne (POL), China Agritech (CAGC), A-Power Energy (APWR), and CostCo. (COST)

Reuters Biz: Antisoma, Novartis lung cancer drug fails in study http://link.reuters.com/cam65j

Reuters Biz: Best Buy eyes May UK launch; Carphone demerger http://link.reuters.com/wuk65j

FT: Geely seals deal to buy Volvo from Ford: Ford Motor signed a $1.8bn deal to sell its Volvo brand to Geely on Sunda… http://bit.ly/9HWACG

CNBC: #IPhone App to Sidestep AT&T -> http://bit.ly/bH8TDh #wireless #app

CNN Money: How a big bet on oil went bust http://bit.ly/boikYC

Rio Tinto’s Stern Hu reportedly sentenced to 10 years in prison by Chinese court http://on.mktw.net/bKSqxc

Douglas A. McIntyre

Pier 1 Imports Inc. (NYSE: PIR) rose over 11.4% to a yearly high of $5.55  after the furniture retailer announced a 3Q profit of $0.02 per share, beating analyst estimates.

Garrett W. McIntyre

A-Power’s gross margins also increased in the fourth quarter, from 11.2% a year ago to 17.8%. For the full year, gross margins were 13.9%, up from 13.5% a year ago. With margins growing, the company heads into 2009 with a full head of steam.

The company recently signed an agreement with a division of General Electric Company (NYSE:GE) for turbine gearboxes for 2.7 megawatts of wind generators, and has established a joint venture with GE to build a plant in China to manufacture wind turbine gearboxes. A-Power launched China’s largest wind turbine plant in January with production capacity of 1,125 megawatts.

For 2009, A-power expects revenues of $290 million, up from $264.9 million in 2008. That seems a bit pessimistic because  it is based almost solely on sales of the company’s distributed generation equipment. The company notes that its wind power effort is “still in its infancy,” but it anticipates strong demand.

The share price is up more than 29% at $5.80 in fairly active pre-market trading. The 52-week share price range is $3.00-$31.89.

Paul Ausick
April 9, 2009

The company blames exchange rates between theEuro and the US dollar and the "unstable" credit markets for therevision. Worse, the company’s annual manufacturing capacity is pegged750 MW, and the 2008 product shipment target has been lowered from 550MW to about 490 MW. Idle capacity is the devil’s workshop.

So much for the sun. Now, let’s look at the wind. Another Chinesecompany, A-Power Energy Generation Systems (NASDAQ:APWR), reported thirdquarter revenue of $85.4 million and net income of $9.4 million (EPSof $0.28). Analysts had been expecting EPS of $0.32.

A-Power really can’t catch a break. In October, it announced a newcontract for 50 of its 2.7 MW wind turbines and the share price fell11% on the news. Over time, though, the Chinese government’s commitmentto wind power spells significant future growth for companies likeA-Power.

The problem, of course, is when the future begins. Right now, China’s export markets are stalledand its domestic consumption, which has always been a laggard, is notpicking up the slack. Solar companies like SunTech find more customersoutside China than inside. The same is true of other Chinese solarmakers, such as JA Solar (NASDAQ:JASO), First Solar (NASDAQ:FSLR), andEnergy Conversion Devices (NASDAQ:ENER), which has reached a new52-week low already this morning.

For wind companies like A-Power, China’s caution on spending fordomestic infrastructure will stifle prospects for a turnaround any timesoon. A-Power’s shares are also at a new 52-week low early this morning.

With oil now challenging $50.00 to the downside after just going above $140.00 to the upside in June, it is easy to fathom that even the greenest of the green may have to treat new alternative energy projects with the term "climate change" rather than "global warming."

Paul Ausick
November 20, 2008