Energy
Trina Solar, Profitability Over Internal Expansion (TSL)
Published:
Last Updated:
Trina Solar Ltd. (NYSE: TSL) is halting the development of a previously announced polysilicon production facility, which originally had a total estimated cost of some $1 Billion. Less than two weeks ago, the company announced it had secured long-term supply pacts over an 8-year period.
The solar photovoltaic products maker in China said its related equipment supply contract with a unit of GT Solar International Inc. will lapse as a result of this capacity not coming on-line. This strategic decision came after what the company called a careful assessment of raw material requirements, along with recent and favorable long-term polysilicon market and supply condition developments.
Trina Solar’s stock closed on Friday at $38.00, and shares are indicated up about 3% between $39.25 and $39.50 in early pre-market trading this morning. Its market cap is close to $950 million and the company is currently profitable. Its 52-week trading range is $25.88 to $73.06.
At first this sounds cautionary in that the added capacity won’t be there. But the shares indicating higher on the news as this implies more rewards for profitability monitoring rather than just capacity expansion now that it secured longer-term pacts.
You can join our open email distribution list to hear about special financings, secondary offerings, IPO’s, M&A, and more previews for other special situations in various stages.
Jon C. Ogg
April 11, 2008
Jon Ogg produces the Special Situation Investing Newsletter. He can be reached at [email protected] and he does not own securities in the companies he covers.
The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.
Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.
A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.
Click here to learn how to get a quote in just a few minutes.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.