Hearing Street chatter Suntech (NYSE:STP) guidance tomorrow morning will be disappointing on the GM side as the co has been struggling to get poly supply deals done, forcing it to buy from MEMC & Hemlock on the spot mkt.
NCN Solar comments:
Just a little comment on that, they will likely buy less than 10% of supply on spot but they likely won't go for more supply considering spot rates are over $400. About 50% is long term 40% is sort of in between, sort of deals they make, meaning not as good as long term, but much below spot.
Regardless, can't expect a great STP report, tho long term, you can't overly punish them for near term poly price issues, meaning there will be time to buy this one back its a supply issue, not demand, and I'm looking to buy FSLR tomorrow, if the STP report is weak in fact, and the group trades lower.
NCN Solar comments:
Just a little comment on that, they will likely buy less than 10% of supply on spot but they likely won't go for more supply considering spot rates are over $400. About 50% is long term 40% is sort of in between, sort of deals they make, meaning not as good as long term, but much below spot.
Regardless, can't expect a great STP report, tho long term, you can't overly punish them for near term poly price issues, meaning there will be time to buy this one back its a supply issue, not demand, and I'm looking to buy FSLR tomorrow, if the STP report is weak in fact, and the group trades lower.
I think you're wrong on this one.
ReplyDeleteGreat Call NCN!
ReplyDeleteCheers..
I didn't make a call on STP.
ReplyDeleteGreat play on buying the dip in FSLR/
ReplyDeleteT
Good, no strike that, GREAT call NCN Solar!
ReplyDelete