Qsolar Ltd. QSLRF

RE:RE:RE:Summer Slumber Ending Soon?

[mercurysmith]

The August 26th MD&A partially answers questions regarding future sales contracts.  The author of the MD&A is very skilled in his/her trade and it is well written.  We learn that the EU dispute really did have a profound effect on Qsolar (which explains the s/p slump since May).  Prior to that EU dispute, most sales were going to the EU, but now the focus seems to have changed.  The MD&A suggests that China is now the primary sales target and it appears the USA and other non-EU locations are the secondary targets, with the EU locations being relied upon much less.  The 50 MW capacity at the original Shanghai factory could meet the 25 MW of EU orders made last May (assuming those orders survived the EU dispute), so it seems logical that the new 500 MW factory in Zhoushan is primarily for domestic consumption in China.  It sounds like they are in the process of obtaining some licencing certification in the USA in an effort to develop commercial sales there as well.  In short, the MD&A doesn't give any specifics regarding new sales contracts, but it definitely gives a general direction things are heading.  It was a good read.  Hopefully we will get some other n/r within the next month updating the status of the Zhoushan factory and domestic sales contracts in China.  I do like this company, primarily because of their technological advantage.