Energy

Another Solar Company Bites the Bankruptcy Bullet

Solar component maker Satcon Technology Corp. (NASDAQ: SATC) filed for Chapter 11 bankruptcy protection after markets closed last night. While not as well known as solar panel makers First Solar Inc. (NASDAQ: FSLR) and SunPower Corp. (NASDAQ: SPWR), Satcon provided a component critical to every solar PV installation — a device called an inverter that converts electrical current from DC to AC or the reverse, as needed.

Competition among inverter makers has been especially strong, with over 40 companies jumping into the market. The best known are probably Enphase Energy Inc. (NASDAQ: ENPH) and Power-One Inc. (NASDAQ: PWER).

Satcon stock has fallen from nearly $10 a share to less than a dime in the past 12 months as the company has struggled to replace lost European business. The well-publicized bankruptcy at Solyndra and the less-publicized bankruptcy at Abound Solar, combined with the over-capacity problems facing Chinese solar makers, clearly indicate the precariousness of the solar market these days. Fewer solar panel installation projects means diminishing demand for inverters and other components.

Satcon conducted a 1-for-8 reverse stock split in July in an effort to hold its share price above a dollar, but that didn’t help. Neither did closing manufacturing plant in Canada or firing staff in Europe.

Shares have doubled today, from yesterday’s 52-week low of $0.07 to $0.14. The 52-week high is $9.92.

Paul Ausick

The #1 Thing to Do Before You Claim Social Security (Sponsor)

Choosing the right (or wrong) time to claim Social Security can dramatically change your retirement. So, before making one of the biggest decisions of your financial life, it’s a smart idea to get an extra set of eyes on your complete financial situation.

A financial advisor can help you decide the right Social Security option for you and your family. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.

Click here to match with up to 3 financial pros who would be excited to help you optimize your Social Security outcomes.

 

Have questions about retirement or personal finance? Email us at [email protected]!

By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.

By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.