24/7 Wall St. » ENPH

ABB to Buy Power-One: A Vote of Confidence in Solar Energy

Paul Ausick — Mon, 22 Apr 2013 14:10:10 +0000

Swiss-based industrial firm ABB (NYSE: ABB) said today that it has agreed to acquire U.S.-based solar power firm Power-One Inc. (NASDAQ: PWER) for $6.35 a share, or about $1 billion, in cash. The acquisition is expected to close in the second half of this year, and includes $266 million in Power-One’s cash on hand.

Power-One makes solar inverters, which convert the direct current from a solar installation into alternating current that can be sent to the electrical power grid. Competitor Satcon Technology filed for Chapter 7 bankruptcy liquidation earlier this year after failing to find a buyer.

From ABB’s viewpoint apparently, paying real money for Power-One was preferable to picking the bones of Satcon. Another power inverter firm, Enphase Energy Inc. (NASDAQ: ENPH), makes a smaller device called a micro-inverter, which does the energy conversion at the module level rather than the installation level.

ABB already had expected to sell $100 million of its own solar inverters in 2013, and if Power-One’s sales approach the $1 billion total they made in 2012, ABB has got itself a bargain.

The press release notes that the International Energy Agency (IEA) that the solar inverter market is expected to grow by 10% annually through 2021, driven by rising demand, especially in emerging markets, rising electricity prices and falling costs. In such a scenario, scale usually wins and that is what ABB gets with Power-One.

Power-One’s shares are up about 56% from their $4.04 close on Friday to $6.32, in a 52-week range of $3.51 to $7.16.

Filed under: 24/7 Wall St. Wire, Alternative Energy, Green Biz, International Markets, Mergers & Acquisitions, Mergers and Buy Outs Tagged: ABB, ENPH, featured, PWER

Solar Parts Maker Satcon to Liquidate

Paul Ausick — Tue, 05 Feb 2013 17:45:03 +0000

Satcon Technology Corp., maker of a critical solar panel component called an inverter, filed for bankruptcy protection last October, but the company couldn’t find a buyer and has announced today that it will liquidate its assets. The company’s lender refused to finance the firm beyond tomorrow and Satcon’s board voted today to begin the Chapter 7 liquidation process.

Satcon, along with Enphase Energy Inc. (NASDAQ: ENPH) and Power-One Inc. (NASDAQ: PWER), made the solar inverters that converted direct current to alternating current that enabled the solar-generated electricity to be fed to the grid. Power-One’s inverters are similar to those once made by Satcom, while Enphase specializes in micro-inverters that convert the electricity at the module level instead of the installation level, making the devices cheaper, more efficient, and safer.

Power-One today announced that it had signed a deal with Panasonic to work on grid-connected energy storage systems for sale in the European and U.S. markets. Last week Enphase signed a partnership deal with Australian solar distributor RFI Solar.

The key to success in today’s solar components market is lowering costs. Cell costs have fallen through the floor, and lowering costs for inverters and mounting hardware had to continue to decline if solar installations were to remain competitive. Satcon couldn’t keep up with price cuts and that’s why the company will be in court tomorrow to seek permission for a liquidation.

Filed under: 24/7 Wall St. Wire, Alternative Energy, Bankruptcy, Green Biz, Technology Companies Tagged: ENPH, PWER

Another Solar Company Bites the Bankruptcy Bullet

Paul Ausick — Thu, 18 Oct 2012 15:33:06 +0000

Solar component maker Satcon Technology Corp. (NASDAQ: SATC) filed for Chapter 11 bankruptcy protection after markets closed last night. While not as well known as solar panel makers First Solar Inc. (NASDAQ: FSLR) and SunPower Corp. (NASDAQ: SPWR), Satcon provided a component critical to every solar PV installation — a device called an inverter that converts electrical current from DC to AC or the reverse, as needed.

Competition among inverter makers has been especially strong, with over 40 companies jumping into the market. The best known are probably Enphase Energy Inc. (NASDAQ: ENPH) and Power-One Inc. (NASDAQ: PWER).

Satcon stock has fallen from nearly $10 a share to less than a dime in the past 12 months as the company has struggled to replace lost European business. The well-publicized bankruptcy at Solyndra and the less-publicized bankruptcy at Abound Solar, combined with the over-capacity problems facing Chinese solar makers, clearly indicate the precariousness of the solar market these days. Fewer solar panel installation projects means diminishing demand for inverters and other components.

Satcon conducted a 1-for-8 reverse stock split in July in an effort to hold its share price above a dollar, but that didn’t help. Neither did closing manufacturing plant in Canada or firing staff in Europe.

Shares have doubled today, from yesterday’s 52-week low of $0.07 to $0.14. The 52-week high is $9.92.

Paul Ausick

Filed under: 24/7 Wall St. Wire, Alternative Energy, Bankruptcy, Green Biz Tagged: ENPH, FSLR, PWER, SATC, SPWR

24/7 Wall St. Closing Bell — June 4, 2012 (FB, YUM, TM, AMZN, BA, CVGW, CONN, NX, JASO, MFRM, UNFI, LAYN, CRED, FOR, ENPH, DAL)

Paul Ausick — Mon, 04 Jun 2012 20:07:57 +0000

The three major US stock indexes opened very slightly higher this morning, but soon turned south on a disappointing report on US factory orders (our coverage here). In Europe, Germany once again proposed a fiscal union, and the move was initially viewed positively. But the rest of the eurozone has already rejected a similar plan. In China, the weak non-manufacturing PMI report was also a weight on US markets, which appear to be set to close at just about break-even today.

The US dollar index slipped today, now down -0.42% at 82.541. The GSCI commodity index is down about -2.5% at 580.99, with commodities prices mixed. WTI crude oil closed up 0.9%% at $83.98/barrel. Brent crude trades up 0.55% at $98.97/barrel. Natural gas rose 4.2% today to $2.42/thousand cubic feet. Gold settled down -0.5% today, at $1,613.90/ounce.

The unofficial closing bells put the DJIA down about 17 points to 12,101.39 (-0.14%), the NASDAQ rose more than 12 points (0.46%) to 2,760.01, and the S&P 500 rose 0.01% or less than 1 point to 1,278,17.

There were several analyst upgrades and downgrades today, including Facebook Inc. (NASDAQ: FB) started as ‘underperform’ at Bernstein (for an even dimmer view, see our story here); Yum! Brands Inc. (NYSE: YUM) cut to ‘market perform’ at Raymond James; Toyota Motor Corp. (NYSE: TM) cut to ‘neutral’ at Credit Suisse; Amazon.com Inc. (NASDAQ: AMZN) removed from the ‘Conviction Buy’ list at Evercore; and The Boeing Co. (NYSE: BA) raised to ‘buy’ at Stifel Nicolaus.

Earnings reports since markets closed last Friday have been scarce, but here are some price changes for reporting companies as of the last half hour of trading today: Calavo Growers Inc. (NASDAQ: CVGW) is down -10.2% at $24.40; Conn’s Inc. (NASDAQ: CONN) is down -6% at $16.65; and Quanex Building Products Corp. (NYSE: NX) is down -2% at $15.63.

On Tuesday, we are scheduled to get earnings reports from JA Solar Holdings Co. Ltd. (NASDAQ: JASO), Mattress Firm Holding Corp. (NASDAQ: MFRM), United Natural Foods Inc. (NASDAQ: UNFI), and Layne Christensen Co. (NASDAQ: LAYN).

Other standouts from today include the following stocks:

Credo Petroleum Corp. (NASDAQ: CRED) is up 32% at $14.35 after posting a new 52-week high of $14.38 earlier today. The oil & gas exploration and production company iw being acquired by Forestar Group Inc. (NYSE: FOR) for $14.50/share, or a total of $146 million.

Enphase Energy Inc. (NASDAQ: ENPH) is down -16.6% at $4.96 after posting a new 52-week low of $4.92 earlier today. The microinverter maker (for installation with solar panel systems) has no news, but is taking a heavy hit from solar panel makers’ price drops today.

Delta Air Lines Inc. (NYSE: DAL) is down -11.6% at $10.17. The airlines reported weaker-than-expected results for May. More coverage here.

Stay tuned for Tuesday. St. Louis Fed President James Bullard, Dallas Fed President Richard Fisher, and Chicago Fed President Charles Evans are giving speeches. We have also noted the following events on the schedule (all times Eastern):

10:00 a.m. – ISM non-manufacturing index
11:30 a.m. – 4-week bill auction

Paul Ausick

Filed under: Active Trader, HI/LOW, Market Close Tagged: AMZN, BA, CONN, CRED, CVGW, DAL, ENPH, FB, FOR, JASO, LAYN, MFRM, NX, TM, UNFI, YUM

24/7 Wall St. Closing Bell (GPS, BBY, LULU, MU, RIMM, MY, FINL, FES, DDMG, PBY, ENPH, ZAZA, LIZ)

Paul Ausick — Fri, 30 Mar 2012 20:06:22 +0000

Markets opened higher this morning and after a decline in mid-morning moved higher and wobbled around modest gain to the beginning of the last hour of trading today. This morning’s report on personal income and spending was mildly positive(our coverage here) and the consumer sentiment poll surprised investors by climbing higher than expected (our coverage here). Only the Chicago PMI reading was a disappointment (our coverage here). The US dollar index fell today, now down -0.26% at 78.980. Commodities were mixed on the weaker dollar, with corn and wheat rising the most. WTI crude oil closed up about 0.2% at $103.02/barrel, and Brent crude trades up 0.53% at $123.04/barrel. WTI crude gained 4.2% in the first quarter. Gold settled up 1% today, at $1,671.90/ounce, bringing the yellow metal to a gain of 6.7% for the quarter.

The unofficial closing bells put the DJIA up nearly 66 points to 13,211.74 (0.50%), the NASDAQ fell nearly 4 points (-0.12%) to 3,091.57, and the S&P 500 rose 0.37% or about 5 points to 1,408.46.

There were several analyst upgrades and downgrades today, including Gap Inc. (NYSE: GPS) raised to ‘buy’ at Janney; Best Buy Co. Inc. (NYSE: BBY) maintained as ‘hold’ at Argus; Lululemon Athletica Inc. (NASDAQ: LULU) started as ‘buy’ at UBS; Micron Technology Inc. (NASDAQ: MU) reiterated ‘buy’ with an $11 target price at Jefferies; and Research in Motion Ltd. (NASDAQ: RIMM) maintained as ‘underperform’ with a $12 target price at Jefferies.

Earnings reports since markets closed last night have led to some price changes as of the last half hour of trading today: China Ming Yang Power Group Ltd. (NYSE: MY) is up 4.9% at $2.35; Research in Motion is up 6.8% at $14.67 (more coverage here); and Finish Line Inc. (NASDAQ: FINL) is down nearly -16% at $21.34 (more coverage here). After markets close today Forbes Energy Services Ltd. (NASDAQ: FES) will report earnings. Before markets open on Monday we’ll get earnings from Digital Domain Media Group Inc. (NYSE: DDMG) and Pep Boys – Manny Moe and Jack (NYSE: PBY), which is essentially meaningless now that the Pep Boys are being acquired by a private equity firm.

Other standouts from today include the following stocks:

Enphase Energy Inc. (NASDAQ: ENPH) is up more than 19% at $7.16 after posting an intra-day on its IPO day of $8.24. More coverage here.

ZaZa Energy Corp. (NASDAQ: ZAZA) is up more than 21% at $4.74. The independent oil & gas driller acquired new acreage in a liquids-rich shale play in East Texas.

Liz Claiborne Inc. (NYSE: LIZ) is up about 12% at $13.26 after posting a new 52-week high of $15.39 earlier today. The Wall Street Journal reported that the company was in takeover talks with several private equity firms for about $20/share.

Stay tuned for Monday. St. Louis Fed President James Bullard and Cleveland Fed President Sandra Pianalto are giving speeches. We have also noted the following events on the schedule (all times Eastern):

10:00 a.m. – Institute for Supply Management manufacturing index
10:00 a.m. – Construction spending
11:30 a.m. – 3- and 6-month bill auction

Have a great weekend!

Paul Ausick

Filed under: Active Trader, HI/LOW, Market Close Tagged: BBY, DDMG, ENPH, FES, FINL, GPS, LIZ, LULU, MU, MY, PBY, RIMM, ZAZA

Enphase IPO Goes Out at Low End of Range (ENPH)

Paul Ausick — Fri, 30 Mar 2012 15:27:51 +0000

Microinverter maker Enphase Energy Inc. (NASDAQ: ENPH) completed its IPO this morning, issuing 8.97 million shares at an offering price of $6/share. The price is the low end of the pre-IPO range of $6-$7, which the company had lowered from $10-$12 earlier this week (our coverage here).

The number of shares offered rose significantly, though, from an originally planned total of 7.27 million. The additional 1.7 million shares more than makes up for the lower price. The underwriters have a 30-day over-allotment option of 1.35 million shares. All the shares are being offered by Enphase, not by any individual owners.

Shares of Enphase are up about 24% at $7.44.

Filed under: Alternative Energy, Green Biz, IPOs, IPOs & Secondaries Tagged: ENPH

IPO Price Drops at Solar Firm Enphase

Paul Ausick — Wed, 28 Mar 2012 13:57:13 +0000

Problems in the solar PV market are well-known. Oversupply has led to a price drop of around 50% for modules, governments are cutting subsidies, and systems are still too expensive.

Enphase Energy Inc. makes a device called a microinverter that converts DC to AC at the solar cell level, not at the system level as has been common in solar PV systems for the past 20 years. The company first filed for an IPO last June and just over a week ago Enphase set a price range of $10-$12/share for its IPO. Today the company filed another amended Form S-1 lowering the IPO price range to $6-$7/share. Enphase still plans to sell about 7.27 million shares at its IPO. The stock will trade on Nasdaq under the symbol ‘ENPH’.

The price drop almost surely reflects investors wariness about the market for solar PV, and especially the incorporation of a newer technology like microinverters into the mix. Microinverters are expected to garner just 2% of the total market for inverters by 2015, and the total value of that market is just $1.5 billion. Enphase and a competitor, SolarEdge, currently account for 40% of the market, hardly a dominating position for either one.

At today’s IPO pricing, Enphase is looking to raise about $44-$51 million, down from the earlier range of $72-$87 million, before expenses and over-allotment options. The company has raised about $115 million in venture funding, so unless the IPO price falls further it seems pretty likely that the company will proceed with offering. But it’s not going to be what either the company or the venture firms had been hoping for.

Today’s filing is available here.

Paul Ausick

Filed under: Alternative Energy, Green Biz, IPOs, IPOs & Secondaries Tagged: ENPH