RE:Relief Rally marketsense wrote: Results were OK but their issues remain a problem. Payout ratio needs improvement
and this after $20M in cost savings which will not be repeated. Overall its better than
market was anticipating and obviously shows how oversold KWH was thanks to the
shorts who tipped them down into the low $5's. Where do we go from here is the big
question. I hope they can maintain share price and build from here. Getting rid of solar
would help them in so many ways IMO, but they seem doggedly committed to keep it
despite it losing money every quarter. I guess they're hoping for a miracle. As a % of
their total revenue, the solar loses are not huge but it just looks bad on their balance
sheet when you are now operating with a 100% payout.
IMHO their dip into SOLAR was done on POOR JUDGEMENT by management.
Solar electricity has always been to expensive to produce. It's fine under some conditions, especially where there is no other alternative. North America has plenty of CHEAPER alternatives as well as a decent infrastructure set up to distribute the alternatives.
Not only that, there was already ongoing litigation happening in some of the key States they were dealing in when Crius took them over. Politics?????????
I've spoken with a couple of contractors in California about their new regulation that is upcoming concerning new houses MUST HAVE working solar energy panels installed.
They see it as a nightmare and they don't believe the current government will win at the next bout at the polls.
Solar is a loser that I seriously doubt they can sell even though they would like to.
IMHO, they should dump it for what they can get out of it and absorb the loss.
Scool, increasing their customer base is likely in their business plan.
Their payout is high at this time buttttttttttttt that's changing, according to their report.
Stopping the constant bleeding from Solar is one of their biggest issues at the moment.
The cash influx from their last aquisition will also start to appear on their books.
GLTA the good folks here.