About two weeks ago Mark Bachman of Avian Securities sent out a research report indicating that the train wreck taking place in the solar industry appears to be almost over and that he’s backing off his negative industry view a bit.
The recommended trading strategy is to focus on the best solar stocks with an intent to sell in Q4. You could call it trading an oversold bounce. The firm notes that it’s not recommending … Read the rest
Daqo New Energy (DQ) is out this morning slashing guidance for Q2 due to fewer shipments across wafers and modules as well as declining ASP’s. The company now sees revenues in the range of $70 – $71 million vs the previous expectation for $92 – $95 million. They see poly shipments of 970 – 990MT, .7 MW of wafer shipments and 12MW of module shipments.
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Shares … Read the rest
Daqo New Energy (DQ) posted strong quarter earnings results this morning leading to a nice surge in the stock above the 50 day moving average. After a healthy run up over the past week, shares are beginning to look much more bullish.
The company reported an EPS of .99/share on revenues of $87.3 million which was ahead of analyst estimates of .85/share and $84 million respectively. Profit surged 450% over the year ago quarter while … Read the rest
Usually, I just posts highlights of the reports from Mark Bachman from Auriga, but this morning decided to just publish in full. Thoughts?
As the second act of the Italian solar drama begins, we look at the bear argument of "too much 2012 capacity leading to uncontrollable price and margin declines." At the risk of starting a larger food fight, we provide our view on how industry capacity develops and show that actual shipments end … Read the rest
Daqo New Energy (DQ) beat analyst estimates this morning, posting huge quarter over quarter growth in the process. Shares of DQ initially surged at the open, up around 5%, but have gone the way of Jinko Solar (JKS) and given it all back and then some. The company reported an EPS of .95/share on revenues of $81.9 million vs the analyst estimate for .71/share on revenue of $75 million. The result was better than … Read the rest
Auriga sent over a research report to us this morning, reiterating their cautiously bullish stance on China solar stocks following a 7 day trip throughout China. The firm visited both public and private companies and while positive in the near term for both shipments and pricing, there is some trepidation due to rising costs.
Commenting on earnings season, they feel that while most companies will post beat and raise quarters, some may reveal some margin … Read the rest
Daqo New Energy (DQ) will have another good day today. Yesterday, the company was initiated at Buy over at Roth capital with a $15 price target and this morning the company is raising Q4 guidance and announcing expansion plans. They are raising their Q4 shipment guidance from 825 – 850MT to 930 – 950MT and revenue guidance from $65 – $69 million to $75 – $76 million. The company also announced plans to build its … Read the rest
Auriga is out today reiterating the Buy rating and $20 price target on Daqo New Energy (DQ). The firm believes the company is on schedule to produce 850MT of polysilicon in Q4 which is the top end of guidance and sees poly prices holding firm at $75/kg. They see little downside risk to the shares at the this level and believes the stock has been unjustly punished since reporting earnings. After a slow start today, … Read the rest
After trading stocks for nearly 15 years and covering the markets religiously for nearly 10, there are certain nuances you pick up on. One is the fact that the blogosphere is riddled with misleading headlines and outright errors. Hey, I’m guilty too at times. It always pays to double check and also keep in mind that most sites don’t report the non GAAP number which is the number that analysts use. That’s why you’ll often … Read the rest
Auriga is out initiating coverage on Daqo New Energy (DQ) and is considerably bullish, calling the company highly profitable and undervalued. The firm initiates Daqo with a Buy rating and $20 price target (about 40% higher than current levels).
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Daqo produces high quality, low cost polysilicon for use in solar products but as Auriga notes the company is trying to establish its wafer and module manufacturing … Read the rest