STP is reporting its earning on May 29th before OPEN.
The following is the consensus estimates:
FY 12/07........................... ..12/08
Sales $1.08 Billion..............$1.54 Billion
YOY...................................+42.5%
EPS $1.11............................$1.60
YOY...................................+44.1%
Current Price $38.10
PE ratio 34.32.......................23.82
Sales Q1 $228.14 million Sales Q2 $245.08 million
YOY + 153.8%......................+ 91.2%
EPS Q1 21 cents................Q2 24 Cents
YOY +75%...........................+41.1%
As you can see that STP has the highest projected Sales for THIS year & NEXT year among ALL solar companies............this comparison includes FSLR,SPWR.
STP had an integration issue of its Japanese subsidiary which affected the margins in Q4 & Q1..STP has moved all the manufacturing to China.....which will help margins going forward.
STP will have inline Q1 but will guide HIGHER for Q2........because their discounted Silicone contracts will take full affect in Q2...........thus lower cost & higher margins.
STP is also working on OPTIMIZING yields on silicone in their manufacturing process which will also help margin.
STP has 80% of all their silicone needs for 07 all LOCKED in discounted contracts with many companies including WFR.
I am expecting STP to go through its 52 week high of $40.49 which is $2.39 away from its close of $38.10 on friday.
STP has build a nice base below its 52 week HIGH since feb......and has made a TRIPLE bottom in May @ $35.20.
All in all STP in my opinion beside being the sales leader will also move UP nicely from here.
Please do your own due diligence.I currently own STP in my portfolio and have put my money where my research is.
BLOG does not give BUY or SELL.BLOG is for educational purpose ONLY.
Good luck in your research & conviction.
Saleem
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