24/7 Wall St. » CSIQ

Chinese Solar Dumping Gets Mild Penalty

Paul Ausick — Fri, 18 May 2012 13:03:27 +0000

Late yesterday the US Department of Commerce released its preliminary findings in the anti-dumping case against Chinese solar panel makers. The principal finding of the International Trade Administration, the DoC agency that rules on international trade cases, is simple:

Commerce preliminarily determined that Chinese producers/exporters sold solar cells in the United States at dumping margins ranging from 31.14 percent to 249.96 percent.

By ITA’s definition, “dumping occurs when a foreign company sells a product in the United States at less than fair value.”

Two Chinese companies, Suntech Power Holdings Co. Ltd. (NYSE: STP) and Trina Solar Ltd. (NYSE: TSL), will have to pay “dumping margins” (tariffs) of 31.22% and 31.14%, respectively. An additional 59 companies and subsidiaries, including Canadian Solar Inc. (NASDAQ: CSIQ, Hanwha Solarone Co. Ltd. (NASDAQ: HSOL), Yingli Green Energy Holding Co. Ltd. (NYSE: YGE), LDK Solar Co. Ltd. (NYSE: LDK), Jinkosolar Holding Co. Ltd. (NYSE: JKS), and JA Solar Holdings Co. Ltd. (NASDAQ: JASO), will pay dumping margins of 31.18%.

The government of China has already rejected the findings, and the Associated Press reports that a Commerce Ministry official said, “The U.S. ruling is unfair, and the Chinese side expresses its extreme dissatisfaction.”

In reality, the Chinese got off easy. The dumping margins are set at the absolutely lowest end of the scale. In March the Commerce Department hit the Chinese makers with tariffs of less than 5%, far below the 100% tariff demanded by SolarWorld and its co-complainants.

The Commerce Department even left the Chinese makers a way out:

Modules, laminates, and panels produced in a third-country from cells produced in the PRC are covered by this investigation; however, modules, laminates, and panels produced in the PRC from cells produced in a third-country are not covered by this investigation.

So China can move its solar cell manufacturing to Thailand or the Philippines or Vietnam, re-import the parts to China for final assembly, and sell the finished goods in the US without penalty, and presumably at whatever price the manufacturers want.

The largest part of the US solar industry is also likely to be dissatisfied by the preliminary ruling. Companies like Real Goods Solar Inc. (NASDAQ: RSOL) and SolarCity — which has filed for an IPO — have been able to turn low prices for solar panels into a healthy installation business. US solar makers First Solar Inc. (NASDAQ: FSLR), SunPower Corp. (NASDAQ: SPWR), and MEMC Electronic Materials Inc. (NYSE: WFR) all own their own project management and installation businesses as well.

Yesterday’s ruling by the ITA is a not much more than a loss of face to China’s makers, while it could be a real job-killer in the US. Anyone who believes that manufacturing solar cells and modules in the US will become a massive industry probably also believes in the Easter Bunny.

A final ruling on the case is not due until November, and appeals are possible — and likely — fairly quickly.

The ITA’s preliminary ruling is available here.

Most Chinese solar stocks are trading higher in the pre-market this morning. That should tell you all you need to know about this ruling.

Paul Ausick

Filed under: General Tagged: CSIQ, FSLR, HSOL, JASO, JKS, LDK, RSOL, SPWR, STP, TSL, WFR, YGE

24/7 Wall St. Closing Bell (AAPL, ADP, KFT, PG, MCO, LULU, ADGF, CHTP, AEO, BWS, CSIQ, CTIC, HOV, TRCR, MAG, BONT, P, VRML)

Paul Ausick — Wed, 07 Mar 2012 21:10:13 +0000

US stocks opened higher this morning following an in-line report from ADP on US employment gains. There was little economic news out today, but we can anticipate tomorrow’s report on new jobless claims and, of course, the biggie, Friday’s report on non-farm payrolls. By mid-morning stocks were solidly higher and have been trading more than half a point pretty consistently. Apple Inc. (NASDAQ: AAPL) pretty well shut down the afternoon news with its new iPad announcement (more coverage here). The dollar was weaker this morning and has fluctuated somewhat on the downside all day, trading down -0.12% now at 79.715. Crude oil has been higher on the weaker greenback, with WTI closing up 1.4% at $106.16/barrel and Brent crude up 1.99% at $124.41/barrel. Gold rose 0.7% today, settling at $1,683.90/ounce.

The unofficial closing bells put the DJIA up nearly 79 points to 12,837.78 (0.62%), the NASDAQ rose more than 25 points (0.87%) to 2,935.69, and the S&P 500 rose 0.69% or more than 9 points to 1,352.63.

There were several analyst upgrades and downgrades today, including Automatic Data Processing Inc. (NYSE: ADP) raised to ‘Focus List’ at Credit Suisse; Kraft Foods Inc. (NYSE: KFT) cut to ‘hold’ at Jefferies; Proctor & Gamble (NYSE: PG) raised to ‘overweight’ at JPMorgan; Moody’s Corp. (NYSE: MCO) cut to ‘neutral at UBS; and Lululemon Athletica Inc. (NASDAQ: LULU) raised to ‘outperform’ at Credit Suisse.

Earnings reports since markets closed last night have led to some price changes as of the last half hour of trading today: Adams Golf Inc. (NASDAQ: ADGF) is up 1.7% at $9.60; Chelsea Therapeutics International Inc. (NASDAQ: CHTP) is up 2.3% at $3.57; American Eagle Outfitters Inc. (NYSE: AEO) is up 6.1% at $15.52; Brown Shoe Co. Inc. (NYSE: BWS) is down -9.3% at $9.46; Canadian Solar Inc. (NASDAQ: CSIQ) is down -12.8% at $2.86; Cell Therapeutics Inc. (NASDAQ: CTIC) is up 0.80% at $1.26; and Hovnanian Enterprises Inc. (NYSE: HOV) is up 3.3% at $2.48.

Other standouts from today include the following stocks:

Transcend Services Inc. (NASDAQ: TRCR) is up more than 39% at $29.24. The medical transcription service is being acquired by Nuance Communications Inc. (NASDAQ: NUAN) for $300 million in net cash ($29.50/share). More coverage here.

Magnetek Inc. (NASDAQ: MAG) is up 22% at $17.50. The electrical equipment maker posted a robust quarterly earnings report today.

The Bon Ton Stores Inc. (NASDAQ: BONT) is up more than 32% at $6.95. The retailer reported lower-than-expected earnings and revenues, but its forecast is above expectations.

Pandora Media Inc. (NYSE: P) is down more than -24% at $10.83. The Internet radio company posted worse than expected earnings last night. More coverage here.

Vermillion Inc. (NASDAQ: VRML) is down -29% at $2.13. The medical device maker’s stock more than doubled yesterday, and today’s action is likely a bit of profit-taking following an analyst’s downgrade. More coverage here.

Stay tuned for Thursday. We have noted the following events on the schedule (all times Eastern):

7:30 a.m. – Challenger Gray & Christmas job-cut report
8:30 a.m. – New unemployment benefits claims
10.00 a.m. – Census Bureau quarterly services survey
10:30 a.m. – EIA natural gas storage report
4:30 p.m. – Federal Reserve balance sheet and money supply

Paul Ausick

Filed under: 24/7 Wall St. Wire Tagged: AAPL, ADGF, ADP,, AEO, BONT, BWS, CHTP, CSIQ, CTIC, HOV, KFT, LULU, MAG, MCO, P, PG, TRCR, VRML

Morning Movers (TRCR, DSCO, BONT, P, CSIQ)

Paul Ausick — Wed, 07 Mar 2012 15:24:16 +0000

The three major US equities indexes opened higher this morning following an in-line report fromn ADP on employment. The dollar is gaining strength even though the dollar index is down slightly, at -0.03% this morning at 79.839. The DJIA is up nearly 30 points at around 12,789, the Nasdaq Composite is up 16 points at around 2,926, and the S&P 500 is up about 3.5 points at around 1,347.

There are several stocks trading more heavily than usual this morning, and also experiencing large gains or drops in share prices. These include the Transcend Services Inc. (NASDAQ: TRCR), Discovery Laboratories Inc. (NASDAQ: DSCO), The Bon Ton Stores Inc. (NASDAQ: BONT), Pandora Media Inc. (NYSE: P), and Canadian Solar Inc. (NASDAQ: CSIQ).

Transcend Services is up nearly 40% at $29.27. Volume is already more than 12x the daily average of about 65,000 shares traded. The medical transcription service is being acquired by Nuance Communications Inc. (NASDAQ: NUAN) for $300 million in net cash ($29.50/share).

Discovery Laboratories is up nearly 26% at $4.71. Volume is already around 12x the daily average of about 656,000 shares traded. The drug maker has received FDA approval for a respiratory drug to treat premature infants.

Bon Ton Stores is up about 28% at $6.72. Volume is already about 3x the daily average of around 240,000 shares traded. The retailer reported lower-than-expected earnings and revenues, but its forecast is above expectations.

Pandora Media is down more than -24% at $10.83. Volume is already about about 5x the daily average of around 2.1 million shares traded. The Internet radio company posted worse than expected earnings last night. More coverage here.

Canadian Solar is down about -12% at $2.90. Volume is already about equal to the daily average of around 1.3 million shares traded. The solar panel maker reported very poor earnings this morning and its outlook is also weak. More coverage here.

Paul Ausick

Filed under: 24/7 Wall St. Wire Tagged: BONT, CSIQ, DSCO, P, TRCR

24/7 Wall St. Closing Bell (JPM, VMW, AIG, SCHW, CHK, CTXS, SAP, JDAS, GGC, MBLX, PCX, DMND, CSIQ)

Paul Ausick — Fri, 13 Jan 2012 21:06:19 +0000

US equities opened lower this morning, weighed down by an undistinguished earnings report from JPMorgan Chase & Co. (NYSE: JPM). More coverage here. Markets in Europe and Asia were higher on the sale of Italian and Spanish debt at lower-than-expected interest rates. The dollar gained strength throughout the day, putting downward pressure on commodities, and a story from Europe that countries would wait another six months to impose further sanctions on Iran pushed crude oil down even further. None of the three major indexes broke through to positive territory today. Crude oil is ending the day down, with WTI down -0.14% at $98.96/barrel and Brent crude is down -0.52% at $110.68/barrel. Gold closed at $1,636.90, down less than -1% on the day.

The unofficial closing bells put the DJIA down nearly 49 points to 12,422.06 (-0.39%), the NASDAQ fell more than 14 points (-0.51%) to 2,710.67, and the S&P 500 fell -0.49% or more than 6 points to 1,289.10.

There were several analyst upgrades and downgrades today, including VMWare Inc. (NYSE: VMW) cut to ‘sell’ with a target price of $80 at Citigroup; American International Group Inc. (NYSE: AIG) started as ‘hold’ at Stifel Nicolaus; The Charles Schwab Corp. (NYSE: SCHW) cut to ‘market perform’ at Wells Fargo; Chesapeake Energy Corp. (NYSE: CHK) reiterated as ‘sell’ with lower estimates at Argus; and Citrix Systems Inc. (NASDAQ: CTXS) raised to ‘buy’ from ‘neutral’ at Citigroup.

Earnings reports since markets closed yesterday have led to some price changes as of the last half hour of trading today: JPMorgan Chase & Co. is down -2.63% at $35.88; SAP AG (NYSE: SAP) is up 2.42% at $54.54; and JDA Software Group Inc. (NASDAQ: JDAS) is down nearly -14% at $28.21.

Other standouts from today include the following stocks:

Georgia Gulf Corp. (NYSE: GGC) is up more than 34% at $32.85. The chemical and home products maker has received a buyout offer of about $1.03 billion ($30/share) from Westlake Chemical Corp. (NYSE: WLK).

Metabolix Inc. (NASDAQ: MBLX) is down about -58% at $2.52, after posting a new 52-week low of $2.51 earlier. The bioscience and chemicals company is suffering from the cancellation of a joint venture with Archer Daniels Midland Co. (NYSE: ADM), which the larger company unexpectedly announced this morning.

Patriot Coal Corp. (NYSE: PCX) is down nearly -13% at $7.87. The coal miner lowered its production forecast and closed several operations. We have more coverage here.

Diamond Foods Inc. (NASDAQ: DMND) is down more than -10% at $29.71. The snack food maker is now the subject of a criminal inquiry related to payments it made to farmers.

Canadian Solar Inc. (NASDAQ: CSIQ) is down more than -9% at $3.19. The China-based solar panel maker is among the group of Chinese makers who are cooling off, probably due to profit taking, after several days of sharp share price increases.

US markets are closed on Monday in observance of the birthday of Martin Luther King, Jr. We have the following events for Tuesday:

8:30 a.m. – Empire State manufacturing survey
11:30 a.m. – 3- and 6-month Treasury bill auctions

Have a great long weekend.

Paul Ausick

Filed under: HI/LOW, Market Close, The Day Tagged: AIG, CHK, CSIQ, CTXS, DMND, GGC, JDAS, JPM, MBLX, PCX, SAP, SCHW, VMW

24/7 Wall St. Closing Bell (T, FFIV, URBN, AMGN, BAX, CAG, GIS, NAV, SAFM, JEF, NKE, ORCL, TRGT, CIE, CSIQ, PBH, HOV, CVS)

Paul Ausick — Tue, 20 Dec 2011 21:06:30 +0000

US equity markets opened sharply higher this morning and have been able to sustain and even add to those gains throughout the day. Business and consumer confidence indexes in Europe were higher, giving an early boost to share prices. Then an unexpectedly large jump in new housing starts, especially multi-family dwellings, put an extra charge into investors. Proposed Federal Reserve rules governing big banks have had little impact on financial stocks, which are up about 4% in the late afternoon. Today’s auction of five-year Treasury went out at 0.880%, a record low yield. Crude oil is also sharply higher today, with WTI trading at $97.22/barrel, up more than 3.5%, and Brent is up 3.34% at $106.98. The US dollar has traded weaker all day today. Gold settled on the Comex up about 1.3%, at $1,616.80.

The unofficial closing bells put the DJIA up nearly 336 points to 12,101.92 (2.85%), the NASDAQ rose more than 80 points (3.19%) to 2,603.73, and the S&P 500 rose 2.98% or nearly 36 points to 1,241.22.

There were several analyst upgrades and downgrades today, including AT&T Inc. (NYSE: T) cut to ‘neutral’ at JPMorgan. Other ratings actions today include F5 Networks Inc. (NASDAQ: FFIV) cut from ‘perform’ to ‘underperform’ at Oppenheimer; Urban Outfitters Inc. (NASDAQ: URBN) raised from ‘outperform’ to ‘Top Pick’ at FBR Capital; Amgen Inc. (NASDAQ: AMGN) added to ‘Strong Buy List’ at Zacks; and Baxter International Inc. (NYSE: BAX) lowered from ‘Top Pick List’ to ‘outperform’ and target price lowered from $61 to $58 at RBC Capital Markets.

Here are today’s post-earnings news reactions with prices during the last half-hour of trading: ConAgra Foods Inc. (NYSE: CAG) is up 4% at $26.18; General Mills Inc. is down about -1% at $39.19; Navistar International Corp. (NYSE: NAV) is up nearly 7% at $39.05; Sanderson Farms Inc. (NASDAQ: SAFM) is down -4% at $48.66; and Jefferies Group Inc. (NYSE: JEF) is up more than 22% at $14.46. After markets close today we get earnings from Nike Inc. (NYSE: NKE) and Oracle Corp. (NASDAQ: ORCL). See our 360 coverage on Oracle here and coverage of the ConAgra and General Mills reports here.

Other standouts from today include the following stocks:

Targacept Inc. (NASDAQ: TRGT) is down more than -35% at $5.01, after posting a new 52-week low of $4.92 earlier in the day. The pharmaceutical maker’s anti-depressant drug, developed in conjunction with AstraZeneca plc (NYSE: AZN) has failed a late-stage trial.

Cobalt International Energy Inc. (NYSE: CIE) is up nearly 38% at $13.81. The oil & gas exploration company has signed a production-sharing agreement for a block offshore of Angola. Cobalt owns 40% of the project and is the operator.

Canadian Solar Inc. (NASDAQ: CSIQ) is up nearly 33% at $2.93. The solar panel maker has sold about 86 megawatts of generation to TransCanada Corp. (NYSE: TRP) for approximately $455 million.

Prestige Brand Holdings Inc. (NYSE: PBH) is up nearly 21% at $11.27. The drug and cleaning supplies company paid $660 million for a selection of nonprescription drugs from GlaxoSmithKline PLC (NYSE: GSK).

Hovnanian Enterprises Inc. (NYSE: HOV) is up more than 18% at $1.50. The home builder is riding the wave of good news about new housing starts.

CVS Caremark Corp. (NYSE: CVS) is up about 9% at $39.85, after posting a new 52-week high earlier of $39.86. The healthcare company raised fiscal year guidance and boosted its quarterly dividend by 30%, to $0.1625/share.

Stay tuned for Wednesday. The most widely anticipated report for tomorrow is due at 8:30 a.m. from the National Association of Realtors, which will be revising its new home sales data from 2007 forward. Lower sales of up to -13% are expected. Here are other noteworthy events on the schedule (all times Eastern):

7:00 a.m. – Mortgage Bankers Association purchase applications
10:30 a.m. – EIA weekly petroleum status report
1:00 p.m. – 7-year Treasury note auction

Paul Ausick

Filed under: HI/LOW, Market Close Tagged: AMGN, BAX, CAG, CIE, CSIQ, CVS, FFIV, GIS, HOV, JEF, NAV, NKE, ORCL, PBH, SAFM, T, TRGT, URBN

Morning Movers (MSHL, CSIQ, TRGT,PGNX, CIE)

Paul Ausick — Tue, 20 Dec 2011 15:20:25 +0000

There are several stocks trading more heavily than usual this morning, and also experiencing large gains or drops in share prices. These include Marshall Edwards Inc. (NASDAQ: MSHL), Canadian Solar Inc. (NASDAQ: CSIQ), Targacept Inc. (NASDAQ: TRGT), Progenics Pharmaceuticals Inc. (NASDAQ: PGNX), and Cobalt International Energy, Inc. (NYSE: CIE).

After the first half hour of trading this morning, Marshall Edwards is up nearly 38% at $1.46. Volume has already reached about 7x the daily average. The development stage oncology drug maker has received a patent that will protect certain oncology drugs until 2027.

Canadian Solar is up more than 32% at $$2.92. Volume has already reached about 75% of the daily average. The solar panel maker has sold about 86 megawatts of generation to TransCanada Corp. (NYSE: TRP) for approximately $455 million.

Targacept is down more than -25% at $5.82 after posting a new 52-week low of $5.64 already this morning. Volume totals about 5x the daily average. The pharmaceutical maker’s anti-depressant drug, developed in conjunction with AstraZeneca plc (NYSE: AZN) has failed a late-stage trial.

Progenics is up nearly 23% at $7.96. Volume has already surpassed the daily average. The pharmaceutical company reported a successful test of a new drug developed in conjunction with Salix Pharmaceuticals Ltd. (NASDAQ: SLXP).

Cobalt is up nearly 21% at $12.17. Volume is nearly double the daily average. The oil & gas exploration company has signed a production-sharing agreement for a block offshore of Angola. Cobalt owns 40% of the project and is the operator.

Paul Ausick

Filed under: Alternative Energy, Green Biz, HI/LOW, Market Open, Oil & Gas, Pharmaceuticals Tagged: CIE, CSIQ, MSHL, PGNX, TRGT

Top Analyst Upgrades & Downgrades (AFFX, AMCX, BRCM, CSIQ, CSCO, DECK, DANG, ELN, EL, FSLR, IVR, IPG, JNPR, OMC, OVTI, ONXX, PTR, RENN, RVBD, SI, YOKU)

Administrator — Thu, 15 Dec 2011 13:28:50 +0000

These are some of the top analyst upgrades, downgrades, and initiations seen from Wall Street research calls this Thursday morning.

Affymetrix Inc. (NASDAQ: AFFX) Raised to Neutral from Sell with a $4.50 price target at Goldman Sachs.
AMC Networks Inc. (NASDAQ: AMCX) Started as Overweight at J.P.Morgan.
Broadcom Corporation (NASDAQ: BRCM) Raised to Outperform at Wells Fargo.
Canadian Solar, Inc. (NASDAQ: CSIQ) named as Bear of the Day by Zacks Investment Research.
Cisco Systems, Inc. (NASDAQ: CSCO) Started as Buy at Nomura.
Deckers Outdoor Corporation (NASDAQ: DECK) Cut to Underperform from Buy at Stern Agee.
E-Commerce China Dangdang Inc. (NYSE: DANG) Started as Hold at Brean Murray.
Elan Corporation, plc (NYSE: ELN) Raised to Buy at Deutsche Bank.
Estee Lauder Companies (NASDAQ: EL) Raised to Outperform as Bull of the Day at Zacks.
First Solar, Inc. (NASDAQ: FSLR) Cut to Neutral from Buy at R.W. Baird.
Invesco Mortgage Capital Inc. (NYSE: IVR) Cut to Market Perform from Outperform at Keefe Bruyette & Woods.
The Interpublic Group of Companies, Inc. (NYSE: IPG) Started as Overweight at Barclays.
Juniper Networks, Inc. (NYSE: JNPR) Started as Neutral at Nomura.
Omnicom Group Inc. (NYSE: OMC) Started as Equal Weight at Barclays.
OmniVision Technologies (NASDAQ: OVTI) lowered estimates again but maintained as Buy with $12.00 price target at Canaccord Genuity.
Onyx Pharmaceuticals, Inc. (NASDAQ: ONXX) Raised to the Conviction Buy List with a $47.00 price target objective at Goldman Sachs.
PetroChina Co. Ltd. (NYSE: PTR) Raised to Buy from Neutral at Citigroup.
Renren Inc. (NYSE: RENN) Started as Hold at Brean Murray.
Riverbed Technology, Inc. (NASDAQ: RVBD) Started as Neutral at Nomura.
Siemens AG (NYSE: SI) Cut to Neutral from Buy at Goldman Sachs.
Youku.com Inc (NYSE: YOKU) Started as Hold at Brean Murray.

JON C. OGG

Filed under: Analyst Calls Tagged: AFFX, AMCX, BRCM, CSCO, CSIQ, DANG, DECK, EL, ELN, FSLR, IPG, IVR, JNPR, OMC, ONXX, OVTI, PTR, RENN, RVBD, SI, YOKU

Solar Reality… The Sun Just Does Not Shine (STP, LDK, CSIQ, TSL, JASO, JKS)

Paul Ausick — Tue, 22 Nov 2011 14:16:55 +0000

The solar PV sector has been struggling for the last two or three quarters as manufacturing over-capacity has driven down module pricing by around 40% since the beginning of the year. China’s top solar makers are getting beaten up, perhaps even worse than their US counterparts.

Six Chinese solar makers reported earnings after markets closed last night and before they opened again this morning: Suntech Power Holdings Co. Ltd. (NYSE: STP), LDK Solar Co. Ltd. (NYSE: LDK), Canadian Solar Inc. (NASDAQ: CSIQ), Trina Solar Ltd. (NYSE: TSL), JA Solar Holdings Co. Ltd. (NASDAQ: JASO), and JinkoSolar Holding Solar Co. Ltd. (NYSE: JKS). Every one of the six performed much worse than already poor expectations. Here’s the litany of third-quarter failure:

Suntech posted an EPS loss of -$0.64 on revenue of $810 million. The consensus estimate called for an EPS loss of -$0.64 on revenue of $776 million. Gross margin was 13.3% in the quarter, and the company expects that to fall to a range of 9%-11% in the fourth quarter. The company lowered its full-year shipment guidance from 2,200 megawatts to 2,000 megawatts.

LDK Solar posted an EPS loss of -$0.87 on revenue of $472 million. The consensus estimate called for an EPS loss of -$0.46 on revenue of $515 million. Gross margin was -3.6% in the quarter, and the company expects that to rise to 2%-7% in the fourth quarter. The company lowered full-year module shipment guidance from 750-850 megawatts to 55–65 megawatts. LDK also revised wafer and ingot shipments downward.

Canadian Solar posted an EPS loss of -$1.02 on revenue of $500 million. The consensus estimate called for an EPS loss of -$0.39 on revenue of $497 million. Gross margin was 2.4% in the quarter, and the company expects that to rise to 5%-8% in the fourth quarter. The company reiterated its full-year shipment guidance of 1,200-1,300 megawatts.

Trina Solar posted an EPS loss of -$0.45 on revenue of $482 million. The consensus estimate called for an EPS loss of -$0.09 on revenue of $440 million. Gross margin was 10.8%, and the company expects gross margin of about 10% in the fourth quarter. The company lowered its full-year shipment guidance from 1,750-1,800 megawatts to 1,400 megawatts.

JA Solar posted an EPS loss of -$0.36 on revenue of $388 million. The consensus estimate called for an EPS loss of -$0.01 on revenue of $379 million. Gross margin was -4.3%, and the company did not provide an estimate for fourth quarter gross margin. The company reduced its full-year shipment guidance from 1,800 megawatts to 1,600 megawatts.

JinkoSolar posted an EPS loss of -$0.47 on revenue of $279 million. The consensus estimate called for EPS of $0.18 on revenue of $272 million. Gross margin was 3.7%, and the company did not provide an estimate for fourth quarter gross margin. Its project for fourth quarter revenue is $180-$210 million.

To declare today an unmitigated disaster for the Chinese solar makers may be understating the case. The companies that are predicting a higher gross margin the current quarter are probably dreaming, and the two companies that did not offer an estimate of fourth-quarter margins (JA Solar and JinkoSolar) undoubtedly face margins so low that they are embarrassed to discuss them.

There will be blood in the streets from these stocks again this morning. That does not mean that this is a particularly good buying opportunity, however. Failures and consolidations in the Chinese solar PV industry have got to be just around the corner. For the past 12 months, every one of these companies’ share price is down at least -70%.

In this morning’s pre-market, JinkoSolar shares are down the most, -12%, at $5.02 in a 52-week range of $4.55-$32.21. LDK shares are down more than -4.5%, at $2.70, in a 52-week range of $2.55-$14.97. Trina Solar is down nearly -4%, at $5.99, in a 52-week range of $5.28-$31.08. JA Solar is down more than -90%, to $1.38, a new 52-week low if it holds. JA Solar’s current 52-week range is $1.46-$8.57. Canadian Solar is down about -4.5%, at $2.10, also a potential nerw 52-week low. The company’s current range is $2.16-$16.79. Suntech shares have not moved yet this morning.

Paul Ausick

Filed under: Alternative Energy, Earnings, Green Biz Tagged: CSIQ, JASO, JKS, LDK, STP, TSL

24/7 Wall St. Closing Bell (AAPL, DV, MS, QCOM, TGT, WDC, HAST, TECD, TSN, HPQ, TSL, CSIQ, JKS, JASO, LDK, STP, LNKD, VRUS, GILD, FMCN, GEDU, REGN, Z)

Paul Ausick — Mon, 21 Nov 2011 21:08:28 +0000

Stock prices plunged this morning and spent most of the day trading way down. The DJIA hovered around -300 points for most of the day, while the NASDAQ was off around -50 points and the S&P 500 wobbled around -30 points for most of the day. Today’s report on existing home sales was better than expected, but that was not enough to encourage investors to buy. Continuing concern over the state of Europe and a nearly unanimous belief that the US Congress’s super committee would fail to reach an agreement far outweighed any good news in the first half of the day. In mid-afternoon, Atlanta Federal Reserve president William Lockhart said that he did not foresee a second US recession, and put the likelihood of another recession at 30%. That gave the markets a bit of a bounce late in the day. Gold is down nearly -3%, at $1,674.40 and oil is down slightly to just under $97/barrel.

The unofficial closing bells put the DJIA down about 248 points to 11,547.23 (-2.11%), the NASDAQ fell more than 49 points (-1.92%) to 2,523.14, and the S&P 500 fell -1.86% or more than 22 points to 1,192.99.

There were several analyst upgrades and downgrades today, including Apple Inc. (NASDAQ: AAPL) reiterated as ‘buy’ with a $500 price target at Credit Suisse. Other ratings actions included DeVry, Inc. (NYSE: DV) cut to ‘underperform’ and ‘Bear of the Day’ at Zack’s; Morgan Stanley (NYSE: MS) raised to ‘buy’ at Argus; Qualcomm Inc. (NASDAQ: QCOM) reiterated as ‘buy’ with a $72 price target at Argus; Target Corp. (NYSE: TGT) cut to ‘neutral’ at JPMorgan; and Western Digital Corp. (NYSE: WDC) raised to ‘overweight’ at Barclays.

Here are today’s big post-earnings news reactions with prices during the last half-hour of trading: Hastings Entertainment Inc. (NASDAQ: HAST) was down more than -13%, at $1.65, after posting a new 52-week low of $1.55; Tech Data Corp. (NASDAQ: TECD) was down -0.9%, at $47.47, and Tyson Foods Inc. (NYSE: TSN) was up about 0.3% at $19.51. We took a closer look at Tech Data’s earnings earlier today.

After markets close today and before they re-open for tomorrow, there will be an avalanche of earnings reports. Perhaps the most closely watched will be Hewlett-Packard Co. (NYSE: HPQ) and a half dozen Chinese solar PV makers: JinkoSolar Holding Solar Co. Ltd. (NYSE: JKS), Trina Solar Ltd. (NYSE: TSL), Canadian Solar Inc. (NASDAQ: CSIQ), JA Solar Holdings Co. Ltd. (NASDAQ: JASO), LDK Solar Co. Ltd. (NYSE: LDK), and Suntech Power Holdings Co. Ltd. (NYSE: STP). Shares in all these solar makers are down today, as investors anticipate the bad news that’s coming.

Several other standouts from today are as follows…

LinkedIn Corp. (NASDAQ: LNKD) is down more than -4%, at $68.95. The company’s 180-day lock-up period ended today, adding another 24 million shares of the company available for sale. LinkedIn tied up another 56 million shares for an additional 90 days or the damage could have been worse.

Pharmasset, Inc. (NASDAQ: VRUS) is up nearly 85%, at $134.03, after hitting a new 52-week high of $135. The company has agreed to be acquired by Gilead Sciences Inc. (NASDAQ: GILD) for $11 billion.

Gilead Sciences, Inc. (NASDAQ: GILD) is down nearly -9.7%, at $36.02, after posting a new 52-week low of $34.45. Investors tend to believe that Gilead is paying too much for Pharmasset.

Focus Media Holding Ltd. (NASDAQ: FMCN) is down nearly -39%, at $15.56. The Chinese advertising company is the target of a report by short-selling firm Muddy Waters alleging that Focus Media has signififcantly overstated the number of screens in its LCD network.

Global Education and Technology Group Ltd. (NASDAQ: GEDU) is up more than 97%, at $10.60, after posting a new 52-week high of $10.70. The company is being acquired by Pearson plc, owner of the Financial Times newspaper and other media properties.

Regeneron Pharmaceuticals Inc. (NASDAQ: REGN) is up more than 10%, at $55.02. The company received USDA approval for its eye drug Eylea.

Zillow, Inc. (NYSE: Z) is down more than -13%, at $23.52, after posting a new 52-week low of $22.55. There is no specific news about the company, but, like LinkedIn, a pile of shares will be available on the market when the company’s lock-up period ends in about another two months.

Stay tuned for Tuesday. In addition to the earnings reports we’ve mentioned, here’s a list of other noteworthy events (all times Eastern):

7:45 a.m. – International Council of Shopping Centers-Goldman Sachs retail sales report
8:30 a.m. – US third-quarter GDP report revisions
8:30 a.m. – BEA corporate profits report
2:00 p.m. – Federal Open Market Committee minutes released

Paul Ausick

Filed under: HI/LOW, Market Close Tagged: AAPL, CSIQ, DV, FMCN, GEDU, GILD, HAST, HPQ, JASO, JKS, LDK, LNKD, MS, QCOM, REGN, STP, TECD, TGT, TSL, TSN, VRUS, WDC, Z

More Disaster in Solar Sector (LDK, JASO, FSLR, SPWRA, TSL, SOL, CSIQ, STP, ESLR, TAN)

Administrator — Fri, 19 Aug 2011 12:32:35 +0000

Solar PV makers continue to hammer themselves and their peers with a seemingly never-ending torrent of terrible news. After markets closed yesterday LDK Solar Co., Ltd. (NYSE: LDK) revised guidance straight downward for its second quarter ended June 30th and for the full fiscal year. LDK picks up the ball from JA Solar Holdings Co., Ltd. (NASDAQ: JASO), which took the solar PV sector down yesterday on a weaker-than-expected earnings report even after JA Solar had warned that the quarter would be awful. LDK doesn’t officially report earnings until August 29th, so there’s still plenty of time for the situation to get even worse.

The list of solar companies that have disappointed on earnings is nearly endless, but some of the bigger names are First Solar Inc. (NASDAQ: FSLR), SunPower Corp. (NASDAQ: SPWRA), Trina Solar Ltd. (NYSE: TSL), ReneSola Ltd. (NYSE: SOL), Canadian Solar Inc. (NASDAQ: CSIQ), and Suntech Power Holdings Co. Ltd. (NYSE: STP). Evergreen Solar Inc. (NASDAQ: ESLR) even chose last week to file for bankruptcy.

LDK’s revisions were substantial. Revenue guidance for the second quarter from $710-$780 million to $480-$500 million. Analysts had a consensus estimate of $714 million. For the year, forecast revenue was revised downward from $3.5-$3.7 billion to $2.5-$2.7 billion. The company will also write down up to $60 million in inventory.

And it gets worse. Gross margins are expected at a meager 1.5%-2.5% on shipments of just 75-80 megawatts of panels in the quarter. How bad is that? The forecast in April called for panel ships in the second quarter of 200-220 megawatts. Full-year shipments are now forecast to fall from 750-800 megawatts to 600-700 megawatts.

So, shipments are tanking and margins are disappearing. It’s no wonder that LDK’s shares are trading off -22% in the pre-market this morning, at $5.10, within reach of a 52-week low of $4.65. The 52-week high of $15.10 may be disappearing over the horizon.

LDK has more problems than just weak shipments and falling margins. A board member who was the head of the company’s audit committee resigned last month, calling into question some of LDK’s accounting practices. Trina Solar faces some of the same charges related to dicey accounting. Combined with issues related to reverse mergers that appear to be crooked, Chinese solar makers have taken a real pounding in the past two months.

About the only thing that would restore some confidence in the industry is a good quarter, and that does not appear to be in the picture for at least the second half of this year.The Guggenheim Solar ETF (NYSE: TAN) fell within a hair of its 52-week low yesterday, closing at $5.22 in a 52-week range of $5.08-$9.34.

Paul Ausick

Filed under: General Tagged: CSIQ, ESLR, FSLR, JASO, LDK, SOL, SPWRA, STP, TAN, TSL