Tuesday, July 15, 2008

Evergreen Solar Announces The Biggest Contract In Its History

Evergreen Solar (ESLR) shares rose nearly 11.5% today as they announced a 1.2 Billion, yes with a "B" contract with the German company IBC Solar. I am sure some of you have never heard of IBC Solar so here are the quick facts. They where established in 1982 and have installed solar panels in more than 50,000 locations!

Of course this is great for Evergreen Solar which has been beaten down along with the market and since its offering of new notes this contract raises their backlog to almost 3 Billion with only 5 customers! This contract further extends through 2013 which gives ESLR even more earnings visibility. Here is what the big wigs had to say...

“We are very pleased to begin this significant long term relationship with IBC SOLAR, the largest PV distributor in the world”, said Richard M. Feldt, Evergreen Solar's chairman, president and chief executive officer. “This contract represents the single largest contract in the history of our company and is one of the largest contracts ever between a panel manufacturer and a distributor.”

“Quality comes first at IBC SOLAR”, said Udo M√∂hrstedt, President and CEO of IBC SOLAR. “Our aim is to make the use of solar energy easy and competitive for our customers. Evergreen’s solar panels are one of the highest quality products in the industry. By adding Evergreen to our product portfolio, we can meet the growing demand of our customers.”

This news comes as The Michigan Economic Growth Authority Tuesday approved a 10-year, 100 percent high-tech employment tax credit for Evergreen Solar (ESLR). Valued at $1.8 million this will help with their new Midland, Michigan plant. Not only this, but the City of Midland will give Evergreen Solar a $3.9 million property tax credit.

This company is on a roll this year, but watch out they are just about to report their earnings on Thursday July 17th, so be careful if you are just starting to build a position into this stock. There is no doubt that Evergreen Solar is a great Long Term Investment, but a earnings miss here would obviously hurt the stock in the short term. As always average into this one as it is very volatile. It looks like though that any time you can pick up ESLR for under $10 at this point would be a great time to buy more. Certainly don't wait too long before jumping into the water, the analyst have really been waking up and smelling the money on this one. The simple fact that Evergreen Solar is only a 1.24 Billion Dollar is has almost 3 billion is sales backlog! This stock is prime for a serious breakout if earnings don't disappoint and this stock is still undiscovered by mainstream wallstreet.

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