No. of Recommendations: 1
That's a definite possibility.

Not a bad article, though I don't like using EBITDA as a sub for FCFF.

According to the WSJ, short interest increased by 7.5% between mid February and mid March. That's Italy concerns. But now Italy is getting squeezed with protests against the two nuclear plants they are building (and construction's been halted) -- an electricity source they haven't used since 1987 -- and, as the author stated, natural gas dependence on Libya and the disruption likely happening there. The other big source for Europe is the Ukraine and Russia and they've played games with Europe before over access to supplies. There's a bunch of pressure to continue going green (wind and solar) in Europe.

Add in the U.S. extending subsidies for another year (I think I have that right) and China's goal of increasing solar power by 33-fold over the next decade (from 600 MW end of 2010 to 20 GW end of 2020) and there's a lot of room for growth.

I don't know if GE plays in the solar inverter space. I'm pretty sure that the inverters it does build are for its wind turbines which it manufactures. Power-One CEO Thompson mentioned that about 50% of wind installation inverters are done by the turbine manufacturers.

I seem to remember a comment from management that Germany and Italy each contributed about 1/3 of last year's inverter revenue, not Italy with 51% as the article states. Ah, found it. It was guidance at 1/3 each. For 2010, Italy contributed 53.3% of inverter revenue, assuming all $381.7 MM of Italian revenue was from inverters.

If the price drops to $5 or $6, I will be all over this one. I wanted to buy in the low $7 range a couple of weeks ago, but it bounced back up too quickly for me to get an article written, published, and shares purchased for the MUE port.

Nice find, thanks.

Cheers,
Jim
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