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

Anytime a senior executive leaves a company investors naturally wonder why. Often, though, there is less there than meets the eye, and this could be one of those times. The recent bankruptcy filing by Evergreen Solar, Inc. (NASDAQ: ESLR) has put the solar sector into the spotlight again, and this is probably adding to the attention focused on Meyerhoff’s departure.

First Solar is currently seeking US Department of Energy loan guarantees for three new utility-scale solar projects, as well as financing for the projects and the sale of a completed project to General Electric Co. (NYSE: GE) and NextEra Energy, Inc. (NYSE: NEE). Meyerhoff’s departure should have virtually no effect on any of these projects, primarily because First Solar has already appointed two experienced executives to lead the systems business group.

A note from Credit Suisse points out that the company’s CEO has now completed the construction of a completely different core executive team from the one he inherited and that the bank’s analysts “believe this team has the skill set to control best what it can in this oversupplied environment.”

And that oversupply situation remains the big issue facing First Solar and every other solar maker. Managing that, and managing investors’ expectations related to oversupply, is a top priority now.

First Solar’s shares are down nearly -4% in the first few minutes of trading this morning, to $100.53, in a 52-week range of $92.75-$175.45. Shares of Guggenheim Solar ETF (NYSE: TAN) are down nearly -1%, at $5.72, in a 52-week range of $5.08-$9.34.

Paul Ausick

The manufacturer of String Ribbon solar power products announced on Monday that it has now voluntarily filed a petition for relief under Chapter 11 of the U.S. Bankruptcy Code with the U.S. Bankruptcy Court for the District of Delaware.

Evergreen has now entered into “a restructuring support agreement with certain holders of more than 70% of the outstanding principal amount of the Company’s 13% Convertible Senior Secured Notes.”  Under this agreement, the supporting noteholders have agreed, “subject to certain terms and conditions, to implement the restructuring to be effected through one or more sales of certain of the company’s assets pursuant to section 363 of the Bankruptcy Code, including the Company’s String Ribbon™ wafer technology business assets.”

Under the restructuring process it plans to use a marketing process to attract bids from all bidders either as a whole or in groups.  The supporting noteholders have agreed to support the restructuring by consenting to cash collateral usage pursuant to a budget during the sale process; and to support the costs of the bankruptcy case.

ES Purchaser, LLC, an entity formed by the supporting noteholders, has also entered into an asset purchase agreement with Evergreen Solar as a stalking-horse and it will provide a credit-bid for assets being sold.

The release notes the same fear as you see with most Chapter 11 reorganizations.  The common shareholders could face a total wipeout.  The release noted that if a better offer (or offers) does not come then most Evergreen assets will be acquired by ES Purchaser.

The added trouble today is that customers are seeing continued pressure to keep cutting manufacturing and wafer supply costs.

The company claims that it expects to continue with its technology development without interruption during this Chapter 11 and sale process and it further noted that daily operations and regular payment to suppliers and vendors will continue.  That should read “sort of” because the company is also announcing that the U.S. and European workforce is being cut by 65 people.  It is suspending operations at the Midland, Michigan filament facility.  The company will have about 50 people supporting development, 10 people in administration, and about 25 people supporting wafer development in Wuhan, China.  Evergreen even went on to note, “the Wuhan China manufacturing business is expected to continue depending on market demand while the Company engages in discussions with its investors in China regarding possible changes to that operation and its sources of financing, including the possibility of transitioning its operations to the Company’s new industry standard wafer technology.”

Here is the kicker and here is where the common holders will get the traditional boot in the process: “Based upon the estimated value of the Company’s assets, the assets are expected to be insufficient to satisfy all its obligations to its creditors. Accordingly, it is expected that no distributions will be made to holders of common stock and the common stock will be extinguished upon consummation of the Chapter 11 plan.“

In short, Evergreen as a stock is dead.  Sadly, Evergreen won’t likely be the last bankruptcy or reorganization under Chapter 11.

Shares are down 32% at $0.286 currently on more than 3.3 million shares.

JON C. OGG

There was no good news for Chinese solar makers either, even given news earlier in the week of the government’s adoption of a higher feed-in tariff for solar generation. JA Solar Holdings Co., Ltd. (NASDAQ: JASO), JinkoSolar Holding Co., Ltd. (NYSE: JKS), LDK Solar Co., Ltd. (NYSE: LDK), Trina Solar Ltd. (NYSE: TSL), Suntech Power Holdings Co. Ltd. (NYSE: STP), and Yingli Green Energy Holding Co. Ltd. (NYSE: YGE) all finished lower yesterday and are all anywhere between -16% and -33% lower for the past month.

The major issues in the solar PV market were identified at least a year ago, but the reality is perhaps worse than anticipated. Massive expansion in production capacity coupled with reduced incentives in Europe have driven margins into the cellar. First Solar reported EPS of $0.70, considerably below EPS expectations of $0.92, and revenue totaled $533 million, well below estimates of $582 million.

And among US solar PV providers, First Solar is perhaps the best. SunPower Corp. (NASDAQ: SPWRA) is trading about-20% below its price of one year ago, even following a massive investment by Total SA (NYSE: TOT). Other US solar PV makers, Evergreen Solar, Inc. (NASDAQ: ESLR), Energy Conversion Devices Inc. (NASDAQ: ENER) and Ascent Solar Technology, Inc. (NASDAQ: ASTI), are all trading below $1/share and are no more than marginal players any longer.

GT Solar, and to some degree MEMC, have the advantage of not producing solar modules and panels. GT Solar’s share price has risen around 50% in the past year on the strength of orders for its solar PV manufacturing equipment. That won’t last forever, but it looks good now. MEMC is holding its own on wafer production and sales, but the glut of solar panels will chip away at this stock over the next few months.

The solar sector has gone from being a growth area to something less than even a value play. The enormous increase in manufacturing capacity that is taking place this year will take several years to stabilize with demand, which is driven more by government policy and incentives than anything else.

Some of the weaker US and Chinese players are destined either to be acquired or to just fade away. In the US, First Solar and SunPower look to be the only long-term survivors. In China, it’s anyone’s guess because so much depends on influence and connections with the government and with government-controlled banks. The recent accounting issues with Chinese solar companies will continue to be a weight unless and until the government brings accounting practices more in line with more widely accepted standards.

First Solar shares are down about -2.5% in the first hour of trading this morning, to $105.26, after setting a new 52-week low earlier, and the shares now trade in a 52-week range of $103.82-$175.45. If First Solar can avoid falling below $100/share today, that will be a victory. The Guggenheim Solar ETF (NYSE: TAN) is down about -1.75%, at $5.65, after posting a new 52-week low earlier this morning of $5.60.

Among the Chinese companies, JA Solar has put up a new 52-week low of $4.05 this morning, before recovering slightly to $4.09, down about -3.5%, with a new range of $4.05-$10.24. JinkoSolar is off more than -10%, to $17.75, in a 52-week range of $17.30-$41.75. LDK Solar is essentially flat, at $6.00, in a 52-week range of $5.69-$15.10.

MEMC is also down more than -3%, having posted a new 52-week low of $5.82, against a 52-week high of $15.04. Only GT Solar is showing some positive news, up more than 2%, at $12.07, in a 52-week range of $6.65-$17.50.

Paul Ausick

Another struggling company, Evergreen Solar Inc. (NASDAQ: ESLR) reported a -60% drop in sales for the first quarter of 2011 and has now received a deficiency letter from Nasdaq that the company no longer meets the $1/share minimum stock price and will be delisted unless the situation is corrected by next January 3rd.

One of the hottest solar stocks of recent days has been GT Solar International Inc. (NASDAQ: SOLR), which has announced several large orders for its solar manufacturing products. A new research report has now predicted a drop of -47% in manufacturing equipment sales in 2012. And solar PV maker ReneSola Ltd. (NYSE: SOL) has cut its guidance for the rest of 2011.

American Superconductor’s problems with Sinovel have been well documented and should be no surprise.  The writedown totals $74.7 million against previously stated revenues of $215.7 million. The company also said it expects revenues for its fiscal year ending in March 2011 to total just $307 million, far below the current Street estimate of $360 million, and more than -30% below original estimates.

The revenue loss is perhaps the least of the company’s worries. Because American Superconductor had booked the revenue before it was received, the company faces more uncertainty about its accounting practices. The company did say that it should have used a cash-based method of accounting. Shares are down more than -5%, at $8.08, having bounced back from an intra-day low of $7.44, virtually at the bottom of the 52-week range of $7.40-$38.88.

Evergreen’s announcement should also have been no surprise. In its SEC filing the company noted that if the shares are delisted, “the holders of its existing convertible notes will have the right to require the Company to repurchase their notes, which it is almost certain the Company would be unable to do. Such a default under the Company’s obligations to its note holders would likely cause the Company to file for bankruptcy.”

GT Solar has been a high flyer in the solar sector, posting a new 52-week high earlier this month. The company’s shares are getting beaten down nearly -9% today following a loss of more than -4% yesterday. Capacity expansions at solar PV makers have been driving GT Solar’s share price increases, but those capacity boosts are expected to result in serious oversupply by the end of this year and into the next two. Demand for more manufacturing equipment is expected to drop as well.

ReneSola shares are off more than -5% following the company’s pull back on quarterly revenue and gross margins. The revenue forecast for the June quarter was reduced from $280-$300 million to $235-$245 million. Analysts had been expecting $287 million. The forecast for gross margin fell from 25%-27% to 17%-19%.

The Guggenheim Solar ETF (NYSE: TAN) is also falling today, down more than -3.5%, to $6.46, after posting a new 52-week low of $6.44. The new range is %6.44-$9.34.

Paul Ausick

The deal follows a recent host of share buybacks and other acquisitions in the solar PV space. Earlier this week LDK Solar Co. Inc. (NYSE: LDK) announced $110 million share repurchase plan. JinkoSolar Holding Co. Ltd. (NYSE: JKS) authorized a $30 million share repurchase plan in May, while the biggest deal was the acquisition of a controlling interest in SunPower Corp. (NASDAQ: SPWRA) by Total SA (NYSE: TOT) for nearly $1.4 billion. Real Goods Solar, Inc. (NASDAQ: RSOL), a solar PV installer, based in Colorado, acquired privately held Alteris Renewables Inc., a Connecticut-based installer, for around $20 million. Don’t think for a second that these are just one-off deals.

In 2010 downstream acquisitions were all the rage. Several solar PV makers bought project development companies. MEMC Electronic Materials Inc. (NYSE: WFR) acquired SunEdison, and First Solar Inc. (NASDAQ: FSLR) acquired NextLight Renewable Power. Japan’s Sharp Corp. (OTC: SHCAY) paid $305 million for project developer Recurrent Energy, and SunPower bought SunRay Renewable Energy for $277 million. The string has about neared its end though, with MEMC’s June 2011 acquisition of Axio Power, a developer of utility-scale solar projects in Canada and the US.

Large, privately held downstream companies are now essentially gone. Solar PV makers wanting to grow either have to build new capacity or look elsewhere in the value chain for opportunities. JA Solar has done both. The company plans to expand production capacity from 2,500 megawatts to more than 3,000 megawatts by the end of the year. The company’s CEO also said that JA Solar would expand wafer production capacity to 600 megawatts by December 2011.

Today’s announcement boosts JA Solar’s 300-megawatt wafer capacity by 485 megawatts, to 785 megawatts, more than 30% higher than the 600-megawatt plan. Clearly JA Solar got a good deal, paying just a 5% premium. But was it a sweetheart deal? JA Solar’s chairman owns 70% of the acquired company. How does that figure in?

Whatever. Solar PV stocks are depressed by a glut of capacity coming online in 2011 that is expected to push supply about 12% ahead of demand. JA Solar, for example, has a trailing P/E of 2.98 and a forward P/E of 4.63. The stock’s price/book ratio is a paltry 0.82. LDK Solar’s numbers aren’t any better, and JinkoSolar’s are only marginally higher.

There could be substantial value in these stocks as the solar PV industry consolidates. To unlock that value is the trick. As installation costs for crystalline solar PV fall every solar PV maker will feel the margin pressure. The traditional way of overcoming that problem is to double down on capacity and cut costs even more as the industry enters a commodity phase.

The companies best positioned to survive are the Chinese, which have proven their ability to get government support when necessary to keep the industry thriving in China. Not all the Chinese makers will survive, but the solar PV industry will and that is what the country’s government wants to see.

US-based companies, with the exception of First Solar, Inc. (NASDAQ: FSLR) are struggling. Evergreen Solar Inc. (NASDAQ: ESLR) is inches away from collapse. Energy Conversion Devices, Inc. (NASDAQ: ENER) is trading at barely above $1/share, has a negative trailing and forward P/E, and few prospects for getting well again.

The downstream acquisitions of the past year or so were not about consolidation, but about growth. Now we should begin to see some consolidation in the industry as every supplier comes under margin pressure.

JA Solar shares are trading down about -2% in early trading today, at $5.46, in a 52-week range of $4.48-$10.24. On a broader front, the Guggenheim Solar ETF (NYSE: TAN) is up more than 1%, to $7.19, in a 52-week range of $6.52-$9.34.

There is one last issue here.  Even if mergers pick up in the solar space, there is no assurance that high premiums will be paid.  Those old highs at the peak of the solar and energy bubble from late 2007 into 2008 will have little relevance.

Paul Ausick

GT Solar International, Inc. (NASDAQ: SOLR) reported first-quarter earnings last night and the company posted EPS of $0.41 on revenue of $272 million. Analysts had been expecting EPS of $0.34 on revenue of $224 million, so GT Solar really stomped on the estimates. The company’s shares put up a new 52-week high this morning to post a new 52-week range of $4.96-$13.35.

The company makes the manufacturing equipment for solar PV makers. It took new orders during the quarter of $722 million, and has boosted both its full-year revenue forecast from $850 million-$1 billion to $1-$1.1 billion. The company also raised EPS guidance from $1.25-$1.50 to $1.55-$1.85.

Even though most solar PV makers are expecting an oversupply in 2011, many are going ahead with capacity expansion plans. That gives GT Solar and competitors like Applied Materials, Inc. (NASDAQ: AMAT) some fertile ground for sales in 2011. GT Solar also makes furnaces that are used in the manufacture of LEDs, another product that is expected to see good growth in 2011.

Another solar winner is the flexible thin-film technology known as CIGS, for copper indium gallium diselenide. Swiss scientists have posted a new record for CIGS energy conversion efficiency of 18.7%. The US National Renewable Energy Lab has also tested a CIGS cell that posts an energy conversion efficiency of 19.9%, but that technology is slightly different.

Thin-film leader First Solar, Inc. (NASDAQ: FSLR) has been working on developing its own CIGS panels, and was once rumored to be in talks to acquire privately held HelioVolt. The rumors haven’t panned out yet, and may never do so. Still, the CIGS technology seems to be a significant jump up in efficiency from the cadmium telluride (CdTe) technology that First Solar currently uses. CIGS technology could also lower total systems costs, called ‘balance of systems’ or BoS cost because they are lighter and don’t require all the heavy support structure of silicon-based PV systems.

The solar loser — again — is Evergreen Solar Inc. (NASDAQ: ESLR), which has seen the state of Massachusetts kill two of the company’s tax breaks following the shutdown of Evergreen’s Devens plant which cost 800 workers their jobs. The state has sent Evergreen a retroactive property tax bill for $1.5 million and has eliminated $7.5 million in tax credits. Evergreen’s shares are trading at $0.76, very close to the bottom of their 52-week range of $0.71-$7.14.

China grew its wind generation capacity by 62% in 2010, to a total of nearly 42,000 megawatts. But the country’s progress may be slowing down this year as a result of the difficulty of connecting wind power plants to the country’s electricity grid. [http://247wallst.com/2011/04/27/alternative-energy-watch-china-plans-to-spend-big-on-grid-equipment-maker-gets-big-order-solr-amat-ldk-cree-veco-amsc/] Approximately 30% of the country’s wind generation is stranded, and there are other troubles as well.

Chinese law requires that 70% of wind projects use local sources and, in many cases, foreign countries that want to build alt energy projects in China must have a China-based partner and must sign a technology transfer agreement. On a more positive note, China has enacted a law mandating compulsory cross-licensing of alt energy technology and recently passed another law that allows companies to obtain a license to use a patent that its owner is not developing. These licensing rules have allowed the country’s big wind turbine manufacturers, Goldwind, Sinovel, and DongFang Electric, to corner more than 50% of the wind turbine market in China.

Ultracapacitor maker Maxwell Technologies, Inc. (NASDAQ: MXWL) and the automotive division of Flextronics International Ltd. (NASDAQ: FLEX) have signed an agreement under which Maxwell will supply its ultracapacitors to Flextronics for use in regenerative braking systems and for start-stop systems in automobiles. Ultracapacitors act like batteries and store/discharge electricity very quickly over a wide range of temperatures and over a large number of cycles.

Finally, a divorce. Johnson Controls Inc. (NYSE: JCI) has filed papers to dissolve its joint venture with France’s Saft Groupe SA. The JV was developing lithium-ion batteries for hybrid and all-electric vehicles. The joint company has deals with Daimler Benz, BMW, China’s Chery, and US carmakers Ford Motor Co. (NYSE: F) and General Motors Co. (NYSE: GM). Johnson Controls will pay Saft $64 million for its part of the JV.

Paul Ausick

Solar PV maker Evergreen Solar has filed a “going concern” letter with the SEC stating that the company may not be able to “maintain liquidity sufficient to operate our business.” Such a letter is often the first step to a filing for bankruptcy protection.

Evergreen issued a liquidity warning last month, and we suggested at the time that a “going concern” letter might be in the works. [http://247wallst.com/2011/04/28/alternative-energy-watch-power-merger-evergreen-solar-stumbling-beacon-gets-a-second-deal-exc-ceg-eslr-bcon-de/] There’s nothing to add to that, sad to say.

In Connecticut, the state’s siting council has rejected a proposal to build a 3.2-megawatt wind project near the town of Prospect. The project would have been the first wind farm in the state, even though it comprised just two turbines.

The rejection was based on the council’s view that the nearly 500-foot tall towers would create an undesirable visual impact. In other words, NIMBY — not in my back yard. The developer said that the turbines would have been far from residences and that the decision was anti-business and bad policy. The same developer has filed pending applications for two more wind farms in the state.

The Connecticut state legislature is considering legislation that would require the state to develop wind farm regulations, which would include siting requirements. A vote on the bill is expected for next week.

The state council’s response to the visual impact of the proposed wind farm is likely to be repeated in many other places where the huge towers are being proposed. A wind farm in Maine has raised the ire of nearby residents for making too much noise, another well-known issue about wind turbines. People may want clean energy, but sometimes the trade-offs appear to be just too high.

Finally today, a recent survey has indicated that as many as 85% of US consumers would buy a battery-powered car. That number further breaks down to 3% who would buy right now, 57% who would buy when they replace their current set of wheels, and 25% who would buy once the technology is proven and widely available.

Most consumers (58%) would prefer to purchase plug-in hybrid vehicle (PHEV) like a Chevy Volt from General Motors Corp. (NYSE: GM) than an all-electric like the Nissan Leaf (8%). Interestingly, the Prius hybrid from Toyota Motor Corp. (NYSE: TM) didn’t figure in the results.

It’s still early days, but Chevy Volts and Nissan Leafs sell fewer than 1,000 cars/month each. And there doesn’t seem to be a lot of pent-up demand for the cars either. It could be that the surveyed consumers were planning on holding on to their cars for a long time or that they don’t expect the technology to improve enough in their lifetimes. Electric car adoption in the US has always been forecast to be pretty slow, and if anything, this survey reinforces that view.

Paul Ausick

What the big question is boils down to whether or not other integrated oil and energy companies will buy into solar, either with majority stake acquisitions or with outright acquisitions in the space.  BP plc (NYSE: BP) may have a tarnished reputation in oil drilling, but it is one of the top solar players out there and its solar operation would likely be one of the largest solar companies out there if it was a standalone business. ConocoPhillips (NYSE: COP) and Chevron Corporation (NYSE: CVX) both discuss solar and other renewable energy, and Exxon Mobil Corporation (NYSE: XOM) has dabbled in alternative energy and diversified into natural gas.  Oil may still be depended upon 20 years or even 50 years from now for many operations, but solar and other alternative or renewable energy sources are all likely to be looked at and at least reviewed by the integrated oil and energy giants.

This move is making waves in the solar sector.  Would you expect anything else?  We are looking briefly at First Solar, Inc. (NASDAQ: FSLR), JinkoSolar Holding Co. Ltd. (NYSE: JKS), JA Solar Holdings Co., Ltd. (NASDAQ: JASO), Trina Solar Ltd. (NYSE: TSL), Suntech Power Holdings Co., Ltd. (NYSE: STP), LDK Solar Co. Inc. (NYSE: LDK), Canadian Solar Inc. (NASDAQ: CSIQ), and even MEMC Electronic Materials Inc. (NYSE: WFR) and then even Evergreen Solar, Inc. (NASDAQ: ESLR).  This is even rubbing off on the ETF in solar of Guggenheim Solar (NYSE: TAN).

This current Total-SunPower deal was valued at $1.38 billion where Total is offering $23.25 per share in a tender for up to 60% of the solar panel maker. While this comes at more than a 75% discount to the 2007 and 2008 peak in SunPower and other solar giants, this does assign a significant premium to today’s share prices.  Total will also offer up to $1 billion in loans and liquidity to SunPower. SunPower Corporation (NASDAQ: SPWRA) is trading up 40% this morning at $22.65 and the prior 52-week trading range was $9.61 to $19.88 and the prior $1.5 billion market cap is now looking more like about $2.3 billion. 

First Solar, Inc. (NASDAQ: FSLR) is up 3.3% at $143.00 after the open against a 52-week range of $100.19 to $175.45; its market cap is the largest of all solar stocks at $12.3 billion.

JinkoSolar Holding Co. Ltd. (NYSE: JKS) is one we actually highlighted before as a value stock due to dirt cheap earnings that still has growth but it is Chinese.  Its shares are up almost 6% at $27.44, its 52-week range (actually less than a year) is $8.23 to $41.75, and its market cap is about $650 million.

JA Solar Holdings Co., Ltd. (NASDAQ: JASO) is also based in China, but its shares are up 3.2% at $6.66, it has a 52-week range of $4.22 to $10.24, it has low earnings multiples, and its market cap is $1.1 billion.

Trina Solar Ltd. (NYSE: TSL) is Chinese as well and trades with low earnings multiples, but its ADR is up 3% after the open at $28.76, its 52-week trading range is $14.85 to $31.89, and its market cap is $2.25 billion.

Suntech Power Holdings Co., Ltd. (NYSE: STP) is up almost 3% at $9.32 from China, its 52-week range is $7.05 to $14.10, and its market cap is $1.68 billion.

LDK Solar Co. Inc. (NYSE: LDK) is Chinese and trades at low multiples and still has growth.  Its ADR is up 3.6% at $11.56, its 52-week range is $4.97 to $15.10, and its market cap is $1.67 billion.

Canadian Solar Inc. (NASDAQ: CSIQ) is up 4.4% at $10.75, its 52-week range is $8.99 to $18.76, and its market cap is only $461 million.

MEMC Electronic Materials Inc. (NYSE: WFR) is a bit odd considering that it makes the silicon materials used for making semiconductors and then for PV panels and it has been a very controversial company due to business changes.  MEMC shares are up over 7% at $11.96 against a 52-week range of $9.19 to $15.95, and its market cap is $2.75 billion.

Evergreen Solar, Inc. (NASDAQ: ESLR) is one we would not expect anything to ever happen with as it is tiny and loses money, despite being the first or one of the first public solar stocks.  Its shares are up almost 2% at $1.45 right after the open.

Guggenheim Solar (NYSE: TAN) is up 4.1% at $8.80 against a 52-week trading range of $6.02 to $9.34.

In short, if a company has the name and operation of ‘solar’ its shares are up. As a reminder, oil companies and many big energy companies tend to trade at sub-market earnings multiples or at least at low premiums to the market in general.  That being said, it would be unlikely to expect the giant integrated oil and energy giants to overpay for acquisitions that are highly dilutive.  They may buy companies in the solar space and in other alternative energy spots but they are not likely to offer mega-premiums for companies that do not have positive earnings and which do not have scalable models out into the future.

JON C. OGG

Normally a merger between a couple of giant power generators wouldn’t be considered as alt energy news, but this one is a bit different. Exelon, the nation’s largest nuclear power generator, is paying $7.9 billion in stock to acquire Constellation Energy, which generates about 21% of its 12,000-megawatt capacity from nuclear and renewable sources.

Both companies own coal-fired plants as well. Exelon generates about 5% of its more than 25,000-megawatt capacity from coal. Constellation generates 23% of its capacity from coal. Combined, of the approximately 35,000-megawatt capacity, about 11% will come from coal-fired generation. Last August, Exelon bought 735 megawatts of wind generation from Deere & Co. (NYSE: DE).

The merged company’s generation capacity will comprise about 55% nuclear, 24% natural gas, 8% renewable and hydro, and the remaining 13% coal- and oil-fired. Exelon has also received 20-year extensions on two of its nuclear power plants, one of which is Three-Mile Island.

As part of the deal, the merged company has agreed to invest more than $250 million in various projects in Maryland, home of Constellation. Part of the deal includes a promise not to cut jobs at Baltimore Gas & Electric for at least two years after the transaction closes. The merger is subject to regulatory and shareholder approvals, and is expected to close in early 2012.

Solar PV maker Evergreen Solar has had a tough year. The stock’s 52-week high was 52 weeks ago, while the 52-week low was posted just 5 weeks ago. Evergreen’s shares are down more than -25% today, to $1.52 about half an hour after the market opened today. They had fallen to $1.37 before bouncing back. The 52-week range is $1.18-$7.14.

Evergreen announced some preliminary data on its first quarter results prior to its scheduled May 2nd earnings release. The company said that first quarter shipments totaled just 18 megawatts at an average selling price of $1.86/watt. In the same period a year ago the company sold 47 megawatts at an average price of $1.90. That’s a double whammy of bad news.

Then came the triple whammy — Evergreen is running short of cash. As the company’s CEO put it, “Our near term liquidity has been negatively impacted [by lower sales] and may require us to secure additional sources of cash sooner than expected.”

Part of the company’s strategy is to restructure its debt “in order to significantly deleverage” and get into a position to secure additional financing. How, exactly, does a company with just $33 million in the bank make a dent in some $427 million in long-term debt?

Back when Evergreen closed its plant in Devens, Massachusetts, the company’s CEO noted that low wages at Evergreen’s Chinese plant were not the primary reason for manufacturing in China. The main reason is access to cheap loans for companies that build factories in China.

In a different world, Evergreen would probably be shutting down about now, or at least issuing a “going concern” notice. That’s not happening because the company might be able to get some cheap money. We should know the answer pretty soon.

Beacon Power makes a flywheel device designed to help regulate frequency services on the US power grid. The company is nearing completion of its first 20-megawatt flywheel storage plant in New York state, and has just received approval from the US Department of Energy to draw up to 95% of a $24 million federal grant to begin work on its second plant in Pennsylvania.

The company has also filed a shelf registration with the US SEC for up to $100 million. The company said it would use the registration to build merchant plants, manufacture more flywheel storage systems, and “funding ongoing operations.”

That last is probably the reason for the stock’s faltering price today. Beacon’s shares are trading down more than -2%, at $1.68, near the bottom of its 52-week range of $1.51-$5.00.

Paul Ausick