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Solar stocks - when will Australia wake up?

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If anyone has any doubts as to how a solar stock can perform, have a look at what's going on in the US. Solar stocks are H O T at the moment.

In particular have a look at First Solar (FSLR), and how it the SP has multiplied 15 fold in since listing 18 months ago. It now has a market cap of $22+ billion which would put in in the ASX50.

Oh by the way, if anyone has any doubts as to the interest in solar stocks, bear in mind that First Solar trades on a p/e of 200.
 
Yes folks,I was right. Solar stocks will have a great future. And yes,you are also right, solar is hot in USA,but what about Australia? There was no ramping and no big increase for solar stocks until now.
I think now could be a good moment to invest. Dow Jones is going down, and the stocks are now quite cheap.
My favorite is Solco further on, as I also told already last year. Why I am so convinced?
Look at this :

Solco forecasts maiden operating profit

http://www.asx.com.au/asx/research/CompanyInfoSearchResults.…

There is the turnaround. The management has changed and now we can see the first success. I think it is only a question of time,until the stock price will accelerate. After now having a positive income, the fair stock price,which is reasonable, is about 0,30 $. I think a income of 2 Mio $ is possible, this year.
And look at the stock price and income of first solar, then you can imagine the potential. I will buy 100000 more.
I think after seeing this development, it can be a good investment.
Bye
 
Hey sunboy, I found this tread when i was doing research on DYE. yeh i heard of SOO before but havent done any research on it yet. Did u buy when the price was like 0.20c 2 years back? are you still holding it and wanting to buy more? Why SOO performed so poorly over the years? I believe you have alot to say as you must have covered the stock for quite long.

cheers!
 
Unfortunately the share price of Solco has collapsed despite the directors upbeat comments. Mr Richardson originally bought in at what was thought to be a great value purchase, for him, at the time: My own views have always doubted the high price the stock went to and it may now, however, be closing in on the 2.7 cent purchase price. Better posts for Solco (SOO) on the companies thread.
 
Solco announces the following un-audited financial key performance indicator outcomes for its
operations for the 6 months to 31 December 2008 with comparator performance for the 2 prior
periods:
Relevant Key Performance Indicator 6 month period
01/07/08 to 31/12/08 (Note 1) 01/01/08 to 30/06/08 (Note 2) 01/07/07 to 31/12/07 (Note 3)
Revenue 11,433,020 9,543,637 6,965,755
EBITDA 501,173 392,529 (210,111)
EBIT 477,840 359,735 (240,330)
NP 477,840 359,735 (240,330)
Note 1: Un-audited, Note 2: Audited, Note 3: Reviewed

I think I was right. Solco is now earning money after a loss of 3 Mio two years go. I guess Solco deserves to be considered. The 0,50 $ solar price makes sense with respect to the turnaround, current growth and the future chance.
I think Australia is now awake!!!
 
Solar share price is 6.7 cents and not 50 cents as stated. The share price has recovered from a low of 2.8 cents which is a good recovery but far below prices over the last two years at around 15 cents.

Profits in the 6 months to 31/12/08 are EBIT $477,840 against EBIT $359,735 in the previous half year, and compares to a loss of $240,330 in the first six months of last year (as per above chart).

Solco have $2,455,000 in the bank and have not yet drawn on their $2 million loan facility.

The company does seems to have turned the corner in a difficult trading 6 months but has a longway to go to restore confidence.
 
Right, the share price is 6,7 cent but in the next six months the positive results shall have consequences for the price. I guess 0,60$ would be adequate, not at the moment but very soon provided that the profit increase will go on with the current dynamic.
 

I don't think you should advise anyone to invest, having read your posts you are clearly in love with the idea of this company... but,

After three years of you ramping this stock it has gone no where but backwards, May I ask how many shares you hold.
 
I have 100.000 stocks and I am very confident.

Here is the reason from today:

Record Profit and Maiden Dividend

Solco continues its corporate and business turnaround to post a record profit of $1.79 million for the fiscal
year 2008/2009 and deliver a maiden unfranked dividend of 0.25 cents per share. The dividend is expected
to be paid on 30 September 2009 for registered shareholders as of 2nd September 2009
Financial highlights for the year:
• Group revenue for 2008/20009 was up 68% to $27.779 million (compared to $16.509
million for 2007/2008) primarily reflecting business growth in its wholesale distribution
business of PV and related products;
• Group net profit for 2008/2009 was up significantly to $1.8 million (compared to a modest
profit of $0.1 million for 2007/2008.”
Solco’s net profit performance has shown a dramatic and positive forward growth curve since the
corporate turnaround lead by David Richardson (now major shareholder and Non Executive Director), with
assistance from Steven Cole (as Chairman). This commenced during 2006/2007 after the Company posted a
record loss of shareholder funds of $5.89 million in 2005/2006.
“This is a very satisfying outcome” said Mark Norman CEO “and a credit to the whole Solco/Choice Electric
team”
“Solco is a company committed to delivering shareholder value and returns. The Board, which also includes
Ian Campbell, the former Federal Government Environmental Minister, takes delight in being in such a
financial position, in terms of profit and cash availability, to pay a maiden unfranked dividend of 0.25 cents
per share to its loyal shareholders” agreed David Richardson and Steven Cole.
The Company’s Annual Report which was released today contains further information on Solco and its
operations.

It is worth waiting.
Bye
 
I have just come across this thread and wow, what a ramp for SOO it has been. Sunboy, I give you an A+, as you have done your job well, shame the SP hasnt kept up with you.

Seems your ramp is like solar technology, the SP cant keep up with your ramp, and the technology cant keep up with the belief from those in the industry.

You have done a great job at ramping, and ramping, and ramping this stock, yet the evidence doesnt seem to have followed your words for the past 4+ months.

By the way, whats your cut if the price does meet these wonderful claims you make?

I was going to ask what your interest's where, yet I see at 4am you finally decided to declare where you are coming from.

How about some substance to the claims of .60 cents a share? Dont copy and paste the company rubbish, show me some workings how you get this. I could say any stock has a value some 10x is current, yet needs to be backed up, as well as your 1000% increase claim.

I see nothing in this stock that suggest they are worth anymore than the 9 cents they trade at. Enjoy your $6000 dividend. Maybe you can buy another 66,666 of them.

P.S. Where are moderators? This is clearly a ramp as there is no backing up for the claims. I've seen a please explain a better research and argued threads/posts.
 
Dear stocksontheblock,

this is no ramp at all. I only add the yearly reports of solco to show that the solar industry has a perfect future. The topic is, solar stocks and not " what a wonderful Solco". Everybody is invited to write his opinion about the chances of the solar companies and of course the stocks with a good performance shall be discussed. I only took Solco to have one example and to show as a kind of watchlist the development over the year.

And now about the claim of 60 cents. I will write it very simple that even you stocksontheblock will understand it.
Solco has an earning per share of 0,90 cent and the dividend is 0,25 cent per share. Therefore we have 1,15 cents per share at the moment. In the newest report Solco predicts a revenue for the next year of 40 Mio $. That would be an increase of 50 %. This is a realistic value due to the government support for solar companies. If we assume a proportional profit growth this would lead to earnings per share of 1,73 cent per share.
The peer group comparison shows that stocks within the same market have stock price to profit ratio of about 24. Altogether this would lead to stock price of Solco of about 0,42$ assuming that the aims will be reached.
60 cents is not so far and can be easily reached because I emphasize solar stocks in Australia are at the beginning compared to USA, China, Germany.
And the big advantage of Solco is that they can use the very cheap prices of the solar modules at the moment. And China will further decrease the prices, consequently Solco will benefit because of the independence of solar module prices. This all leads to a stock price of 0,60 $, prvided that the aims will be reached.
Who knows some other solar stocks, which are worth mentioning?
 
Senator the Hon Penny Wong
Minister for Climate Change and Water
Solar Credits Scheme commences

Media release
PW 264/09
10 September 2009

Solar Credits Scheme commences

A scheme providing support to Australians installing rooftop solar panels will be available from today, the Minister for Climate Change and Water, Senator Penny Wong, has announced.

Solar Credits were part of the Renewable Energy Target (RET) legislation, passed by the Parliament on 20 August. Under the RET, electricity retailers are required to purchase Renewable Energy Certificates, known as RECs.

Through Solar Credits, households installing rooftop solar panels can receive five times as many RECs for each megawatt-hour of solar energy produced by their solar panels. For example, based on a REC price of $40, a 1.5 kilowatt solar panel system installed in Sydney would receive $6200. Based on a REC price of $50, the same system would receive $7750.

“Solar Credits will significantly reduce the cost of going solar at home,” Senator Wong said.

Suppliers of solar panel systems will, in most cases, offer a discount on the price of the system in return for the Solar Credits. Households considering installing solar panels are encouraged to shop around for the best deal.

Solar Credits are available to households, businesses and community groups for eligible small-scale renewable energy systems, including rooftop solar panels and small-scale wind and micro hydro systems. The scheme will be backdated to include eligible systems installed from 9 June 2009.

The RET is designed to deliver on the Government’s commitment to ensure that 20 per cent of Australia’s electricity supply is from renewable sources by 2020. The legislation now in place increases the current Renewable Energy Target by more than four times, reaching 45,000 gigawatt-hours in 2020.

“This means that in ten years’ time, the amount of electricity coming from renewable sources like solar, wind and geothermal will be about equal to Australia’s current household electricity use,” Senator Wong said.

The RET regulations which are now in force have also been designed to prevent inappropriately large solar and heat pump water heaters being installed to create excessive RECs. The Regulations now require statutory declarations to ensure that, for units with a capacity over 700 litres, the unit is appropriately sized for its intended use and that there is an intention that it remain in its original configuration and location for the life of the unit.

Applications for Solar Credits can be made to the Office of the Renewable Energy Regulator. Further details are available at www.orer.gov.au .
 
from "Trading Markets" :

Hunt for bargains

Sep 15, 2009 (The Australian - ABIX via COMTEX) -- AUSTF | Quote | Chart | News | PowerRating --
Australian investors in the stock market are advised to not rely on measurements such as price-to-earnings ratio as an indicator of true value. This is especially true during the global financial crisis and the recent recovery of share prices.
Among the recommendations of experts are Qmastor, NetComm, Solco, Austin Engineering, and Thorn Group.

Publication Date: 16 September 2009

STANDARD AND POOR'S ASX 200 INDEX
STANDARD AND POOR'S ASX 300 INDEX
CITIGROUP PTY LTD
PAPERLINX LIMITED - ASX PPX
ELDERS LIMITED - ASX ELD
FAIRFAX MEDIA LIMITED - ASX FXJ
AUSTEREO GROUP LIMITED - ASX AEO
PACIFIC BRANDS LIMITED - ASX PBG
SUNCORP-METWAY LIMITED - ASX SUN
ONESTEEL LIMITED - ASX OST
BLUESCOPE STEEL LIMITED - ASX BSL
QANTAS AIRWAYS LIMITED - ASX QAN
TOWER LIMITED - ASX TWR
CHALLENGER FINANCIAL SERVICES GROUP LIMITED - ASX CGF
TABCORP HOLDINGS LIMITED - ASX TAH
TATTS GROUP LIMITED - ASX TTS
TELSTRA CORPORATION LIMITED - ASX TLS
TELECOM CORPORATION OF NEW ZEALAND LIMITED - ASX TEL
PREMIER INVESTMENTS LIMITED - ASX PMV
GOODMAN FIELDER LIMITED - ASX GFF
WESTFIELD GROUP - ASX WDC
QMASTOR LIMITED - ASX QML
NETCOMM LIMITED - ASX NTC
SOLCO LIMITED - ASX SOO
AUSTIN ENGINEERING LIMITED - ASX ANG
THORN GROUP LIMITED - ASX TGA
WISE OWL AUSTRALIA PTY LTD
SILVER LAKE RESOURCES LIMITED - ASX SLR
ANDEAN RESOURCES LIMITED - ASX AND
HIGHLANDS PACIFIC LIMITED - ASX HIG
TFS CORPORATION LIMITED - ASX TFC
CASH CONVERTERS INTERNATIONAL - ASX CCV

http://www.tradingmarkets.com/.site/...0News/2529167/
 

Seriously Sunboy... can you just post about SOO in the SOO thread?

Only after I have done some analysis on the SOO thread that I saw your ramp / analyses here. Don't you think you would enjoy a forum where topics are organised under the proper heading?

Whilst we all wish that a share will go up in price as a result of our action on stock forums, I rather trust it is the anlysis behind it that causes the movements.
 
Hmm, SOO has gone up 100% in the past month, the price is now 15 cents. maybe sunboys onto something. but then again, maybe not. I'll keep watching.
 
Yes, the 100% increase was only the result of the adaption of the stock price due to important company news and new developments like the dividend occurence. The increase is the consequence of a sustainable company development over the last two years, this has nothing to do with a ramp.
I only mentioned SOO because it is my favourite for Australia for the next 12 months. If you compare the chart and the strong dynamic my aim of 0,60$ is realistic. So you are right,keep on watching.

The topic is solar stocks, so can you give your opinion about solar industries and the chances for the next years? Or do you have other favourites like wind energy or anything else?
What are the companies with the best development possibilities in Australia?
Please give me your opinion.
 
Interesting thread, im a little interested in Solco now. How many shares make up a minimum purchase? What are the leading solar companies in Australia?
 
Still surprised about the constant growing profit? Not me!!




Solco’s performance over the first half of fiscal year 2010
Solco has continued to improve its financial performance during the six months to 31 December 2009. This was
after a period of restructuring during fiscal year 2007, followed by consolidation resulting in a small maiden profit
in 2008, sales and profit growth in 2009, and distribution of our first dividend early in 2010.
During the first half of the financial year, Solco grew its revenue to $14.8 million, a 30% increase on the same
period of last financial year, however a decrease of 9% on the prior half year. This revenue decrease was largely
due to delays in customer purchases due to a significant holdup in Solar Homes and Communities Rebate approval
process by the government and price reductions in PV panels. Careful management of expenses and product gross
margins ensured net profit grew 15% on the prior half year and 228% on the same period last financial year to a
record $1.56 million.
Key financial performance indicator outcomes for its operations for the 6 months to 31 December 2009, with
comparative performance for the two prior periods are set out in the table below.
Key Performance
Indicator
Relevant 6 month period ($’000)
01/07/09 to 31/12/09 (Reviewed) 01/01/09 to 30/06/09 (Unaudited) 01/07/08 to 31/12/08 (Reviewed)
Revenue 14,834 16,359 11,420
EBITDA 1,597 1,367 498
EBIT 1,576 1,332 475
NP 1,558 1,316 475
Earnings per Share 0.78 cents 0.66 cents 0.24 cents
Dividends per Share 0.25 cents 0 cents 0 cents
Primary revenue growth was driven by product demand due to the increased installation of mainly domestic solar
photovoltaic (PV) systems across Australia. The solar PV market should easily exceed 60 megawatts for calendar
year 2009, as compared with 20 megawatts in 2008. This includes 56 megawatts being installed under the highly
successful Solar Homes and Communities Program (SHCP). The SHCP replacement program, Solar Credits, came
into operation in October 2009. However, initial demand was low due to falling REC prices although growth
followed later in the year. Solar panel price reductions have stressed Solco’s total revenue in spite of the increasing
total number of units sold. After declines in prior periods due to the cancellation of some government support
programs and rural sector downturns, Solco’s solar water pumping sales have rebounded due to increased rural
demand and improved system affordability.

complete report :
http://www.asx.com.au/asxpdf/20100225/pdf/31nyb3k9r8p6bp.pdf


Keep on sleeping Australia!!
 
Sunboy, do you work for Solco?

You keep recommending it saying it's a great stock and if we took your advice back in 2006 when you bought 100,0000 shares they would now be down nearly 70%

Are you trying to recommend everyone to buy the stock so you can recoup your losses?

Solar is the future but right now it's crap. If you want to see the future of solar look at companies like Nanosolar and Konarka -both of which are not listed. Look them up on youtube. Thin film printable solar cells. Manufactured like the newspaper.
 
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