So What’s Up With Evergreen Solar?

(Lesson for you.  Government cann’t just create private sector jobs. – promoted by Paul “Cool Cal” Ferro)

Bloggers at Red Mass Group spent quite a bit of time last fall on the case of Evergreen Solar.  The Commonwealth of Massachusetts has plowed some $70 million plus in subsidies into this venture.  Now its looking like the end is near.  

Karyn Politio weighted in here:  http://redmassgroup.com/diary/…

Yours truly bloviated on this post:  http://redmassgroup.com/diary/…

Karl Marx issued his manifesto:  http://redmassgroup.com/diary/…

So what has happened to the company?  Well, pretty much what we had predicted.  Over the last month, the share price of Evergreen Solar has fallen about 30 percent to $1.22 a share.  Other than a few weeks in March, that’s the historical low for the stock.

In the article “Lights Out fort U.S. Solar Dogs” the Street reports: http://www.thestreet.com/story…

Stuart Bush, an analyst at RBC Capital Markets, said that a lot has to go right for Evergreen just for the solar company to operate on a positive-cash flow basis, let alone be profitable enough to pay off the current debt load. Bush noted that at a time when Evergreen has $90 million in the bank, it has $97 million slated for project spending in 2010, two-thirds of that in the year’s first half.

At the same time, Evergreen management is planning to increase research and development spending and SG&A. “They’ve lost credibility in being able to communicate a path to profitability,” Bush said.

There are some solar analysts who are already convinced that Evergreen will never be competitive, but Wedbush’s Hersey, who maintains an underperform on Evergreen, reminded investors that Evergreen has pulled a rabbit out of its hat before.

Evergreen Solar has been in violation of debt covenants and is facing possible insolvency.  http://www.fool.com/investing/…

So much for Deval Patrick’s state-run politically correct industrial policy.

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