STP or NOT to STP ???

STP reports its Q1 earning before open tuesday.

The following are the consensus estimates:

Sales Q1$228.14 million Q2 $245.08
Growth Rate YOY +153.8%......+91.2%

EPS Q1 21 cents .............Q2 24 cents
Growth Rate YOY +75%..........+41.1%

I am expecting in-line Q1 sales & EPS.

I am expecting better than expected Q2 guidance on EPS..............because of expected improvement in margins for Q2 as contracted supply of Silicon kicks in @ below spot price.

STP has been experiencing declining gross margins because of buying Silicon in spot market...which has been going higher & higher......STP was NOT able to pass this increasing cost until upcoming Q2.

Most of the analyst community is BULLISH on STP for its potential to GROW future business.

STP will be able to manage its margins BETTER going forward with contract Silicon prices & IMPROVEMENT in manufacturing proces ie BETTER yields /less wastage.

CC is @ 8 AM......

Good luck to all STP investors which includes me.

Please do your OWN due diligence on all stocks including STP.

BLOG does not give BUY or SELL.

Saleem