RE: RE: RE: RE: Candian Solar #'s DownWho's denying solar margins are shrinking???...certainly not me!
The whole solar/renewables industry is in its infancy...and as it grows....and more players come on board...they will OBVIOUSLY be pressure on margins. This is the normal cycle of emerging growth industries...fully expected...and on the whole...very healthy indeed for the industry!!! Nothing wrong w/ a little healthy competition...in fact just the opposite. Ever wonder why all those car dealers or furniture retailers or fast food outlets all clump up and down the same strip? Its to draw customers in...in VOLUMES!!!! You may make a little less on any given sale ...but if you run a well managed outfit....you make allot more in overall volumes!!!!
And just like the car dealers and furniture manufacturers ...you're going to get all different price points and quality of product...from low end junk....to the high end luxury models ...and everything in btwn. On the one hand solar has been and will continue to be a commodity to an extent. However, to say its simply only a commodity ....is a gross mistake and simply not true. Thats like saying each car in the lot is just steel, rubber and platic.
Point is you can buy the low end stufff...and for the most part get what you pay for...or you can pay a bit more and get a better more efficient technology and quality product that when amortized over the lifespan of the product....more than pays for itself...or you can keep on replacing the the same low end stuff every few yrs.
My guess is that the larger high end European and N. American.....and now Auzzie and Kiwi clientel that DFE is targeting are pretty sophisticated cookies....and already know this.
I own a good chunk of DFE because i want to be in on the ground floor of a high growth company in a high growth industry w/ a proven superior quality product and technology w/ outstanding management team....w/ a well proven track record of success...in dudes like John MacDonald...who was co-founder of MacDonald Dettweiler....and who's balance sheet doesn't look like a train wreck.
I also very much like the fact that insiders have consistantly bought HUGE chunks of her....and NONE ARE SELLING!!! ...even on recent price spikes which would have neeted them a very handsome profit!!! What does that tell me?...its that these guys are not day traders in for a few penny's here and there.....but in for the big picture longer haul growth story w/ HUGE UPSIDE THAT DFE REPRESENTS!!!!!!!!!!! I admit i took a little profit when she recently spiked to a $1....but that was because i was overweight on her....and needed money for another sweet little good risk/reward play. But otherwise...think i 'm going to follow the lead of DFE experienced insider mangement team and stay the course for the (hopefully) much BIGGER longer term upside i see ulimately happening w/ DFE....and this industry in general.
Finally...promise... i note Duuluu you say you are an a DFE shareholder....which may well be true...but from what i've read...you seem to constantly post pure DFE negativity on this board ...so can't help but wonder what your true/ultimate aim is. To silly little me...looks like you're no fan/supporter of DFE?
Sorry for the long diatribe folks.....but in the spirit of positive sharing of thoughts...just had to say above. Sure Duu gal will have lots more to say...but thats me done.
Happy Capilism folks....and GLTA!!!