Looks like lots of good news coming as we move out of this recession. Analyst will be tripping over each other trying to upgrade and not look like a bunch of donkeys with penny targets when book value is over double current share price.
McMaster team believes cell efficiencies can double and that can be leveraged with OTB single pass sucesses. Additional improvements with U of T and 7n silicon could move us into the 20 percent plus zone sooner rather than later. Arise will then be able to ink higher contract dollars with higher quality. That is on top of existing contracts with solon, aleo, asola.
50 million shelf deal ready to go and will be inked as share price rises. No money concerns with 10 mil deal-like an insurance policy. Higher the share price the less dilution so this won't happen now. If company thought share price was going lower they would have inked deal now. Last deal was at 2.20 and they have a lot more potential now than ever.
I would expect to see some Ontario FIT projects financed by private money, infastructure funds and other monies not direct from company bank. Germany has leasing programs which speeds up project time for all parties.
The Kitchener silicon program has obviously the most potential. As the crdit crisis affected current plans it did not shelf them. That division was intact even as company bank was draining. What does that tell you? Obviuosly the potential is enormous. My believe as to why no partner announced yet is the further along technolgy is the higher the "buy-in" for a partner. With the latest news of cells using 7n could it be the start of a bidding war for 7n partnership? We know the Canadian government is GRANTING one third or over 6 million so interested partners get access to grant money. Also with the FIT local content rules I think the value of being a 7n partner has risen dramatically.
Next quarter should show some improvement but is really meaningless. With rumours of German takeover of module assembly we can see total vertical integration. This would not be happening unless new cell deals are being inked and orders to solon, aleo etc are being accelerated. I would expect we will wake up to news release some day that cell plant is running round the clock and line 3 being installed due to order requirements. That will move cell prices higher and silicon deals were negotiated downward so margins should improve. The 7n silicon will all be sold as quick as it can be produced due to Arise cell demand. Of course the Ontario FIT projects will carry Arise cells, silicon, and if German rumours are true the Arise modules. They are creating demand for all divisions. Brilliant!
As for share price- once investors realize this company will be staying around (unless it is acquired which could EASILY happen at this bargain price) you should see some upward movement. The day of a huge spike is coming. We are all going to say "man I should have bought more at .37"
I have never been more excited about the prospects for this company and will be putting in a bid for shares at .40 in the am. As i write this shares are up 5% in Germany
Good luck to all.
IMO
