Canadian Solar (CSIQ) reports Q2 results
Briefing.com reports that Canadian Solar reports Q2 results, beats on revs; guides Q3 revs in-line; guides FY08 revs in-line Reports Q2 earnings of $0.36 per share, includes one-time non-cash debt conversion charge of $10.2 million, may not be comparable to the First Call consensus of $0.47; revenues rose 24.2% year/year to $212.6 million vs the $206.8 million consensus. Co issues in-line guidance for Q3, sees Q3 revs of $245-255 million vs. $247.63 million consensus. Co issues in-line guidance for FY08, sees FY08 revs of $850-970 million vs. $908.93 million consensus. "Based on current sales and supply agreements and market forecasts, we reiterate our 2009 shipment target of 500 – 550MW. The 2009 target includes about 400 MW of regular solar modules and 100 – 150 MW of e- Modules." "Shipments for Q308 are expected to be approximately 60 MW."
The stock is currently down $1.87 from Tuesday’s close.
Archer Daniels Midland (ADM) reports profit slide
ADM reported a drop in fiscal fourth-quarter profit even as the company’s sales were boosted by higher commodity prices.
ADM reported net income in the quarter ended June 30 of $372 million, or 58 cents a share, down from $955 million, or $1.47 a share, a year earlier. The profit picture was complicated by gains from asset sales last year, which added $616 million after taxes to year-earlier results. Excluding the effect of those gains, profits grew by about 10%.
Revenue jumped 78% to $21.78 billion, with 90% of the rise coming from higher commodity prices and the balance from increased volumes. The company insisted that global protein demand would continue to grow despite a recent slowdown among some of its core products.
Short solar?
Jeff from The Option Addict came out with a note showing some short candidates in the Solar Energy space due to their technical weakness. Stocks include CSIQ, LDK, SOL, STP, TAN, WFR, and YGE.
SDG&E Chooses Itron’s Smart Meters
Itron Inc. (ITRI) has reached an agreement with San Diego Gas & Electric (SDG&E) to replace or upgrade the utility’s 2.3 million electric and gas meters with Itron OpenWay technology for its smart meter initiative.
Itron will provide its OpenWay electric meters and gas modules and Itron Enterprise EditionTM Meter Data Management software, as well as implementation, project management and installation services for the utility’s smart meter project. The agreement must be approved by the California Public Utilities Commission (CPUC).
Financial terms of the agreement were not disclosed.
"We are excited to have yet another forward-looking utility choose our OpenWay system for its smart meter strategy," said LeRoy Nosbaum, Itron chairman and CEO. "SDG&E joins a growing list of OpenWay users who are providing their customers advanced technology that will allow them to integrate their choice of smart appliances and other energy-management devices and software."
Itron’s OpenWay system provides a foundation for smart metering and supports smart transmission and distribution grids by providing a two-way communication network between the utility and each meter. OpenWay provides interval data collection, time-of-use metering, load-limiting remote disconnect and reconnect, outage detection, net metering capability and ZigBee® home area network connectivity, which empowers customers to participate in energy management and conservation.
A Soluble Problem
The Economist.com reported that trading water would help alleviate water shortages. With water consumption doubling every 20 years, according to Goldman Sachs, lack of water could prove to be a bigger threat to mankind than rising food prices or the depletion of energy resources.
Goldman expects profits to be "made less from selling the stuff directly, and more from investments in infrastructure and new technology. The bank estimates that America alone needs to spend around $1 trillion on new pipes and waste-water plants by 2020. It estimates that the higher-tech side of the industry—for example in desalination efforts, or ultraviolet disinfection—is now worth $425 billion dollars, globally."
There will also be plenty of money made in supplying water and owning water rights. More efficient water markets would be one way to share out water with out as much waste.
PICO Holding, Inc (PICO) is a diversified holding company whose whose major activities include owning and developing water rights and water storage operations in the United States.
Brazilian Ethanol Plants to get $260M Loan
The Financial Times reported today that the board of the Inter-American Development Bank is set to approve a 15 year loan of $250M to three new ethanol plants. Despite the growing environmental concerns about biofuels this will be the biggest development ever by a multilateral intuition. The new ethanol project will cost over $1bn and will be built by Santa Elisa Vale Do Rosario, a Brazilian company, and US private equity groups.
"Steady rises in the international oil price have spurred interest in green fuels such as ethanol and biodiesel, but initiatives have become increasingly controversial in recent months as a result of steep rises in the prices of grains and other basic foods."
As long as there is an incentive to convert food to fuel expect the trend to continue.
Suncor (SU) receives $25M for Ethanol Plant
The Canadian government has agreed to give Suncor Energy’s (SU) St. Clair Ethanol Plant a $25 million investment to double its current production according to sustainablebusiness.com. The plant should be completed by the end of 2009 and has received equity investment from farmers totaling $12.5 million.
This will be the fourth biofuel plant funded under Canada’s ecoABC initiative. "The Government of Canada is investing a total of $2.2 billion over nine years toward the goal of reaching an average of 5% renewable content based on the gasoline pool by 2010 and 2% renewable content in diesel fuel and heating oil by 2012 and advancing next generation biofuel technologies."
Morgan Stanley reiterates $120 price target for SunPower
Morgan Stanley came out with a note on Friday defending their overweight rating and 12-month price target of $120 for SunPower (SPWR) after the company handedly beat estimates and raised guidance. Morgan Stanley admits there are near-term headwinds that will keep the stock range bound as investors contemplate Cypress Semiconductor’s proposed spin-off, tariff uncertainty in Spain and ITC delays.
The stock saw some buy interest and closed Friday up $1.38 to $76.70 albeit on tepid volume.
