PennyStockPayCheck.com Rss

Featured Posts

Chase Bank Limits Cash Withdrawals, Bans International... Before you read this report, remember to sign up to http://pennystockpaycheck.com for 100% free stock alerts Chase Bank has moved to limit cash withdrawals while banning business customers from sending...

Read more

Richemont chairman Johann Rupert to take 'grey gap... Billionaire 62-year-old to take 12 months off from Cartier and Montblanc luxury goods groupRichemont's chairman and founder Johann Rupert is to take a year off from September, leaving management of the...

Read more

Cambodia: aftermath of fatal shoe factory collapse... Workers clear rubble following the collapse of a shoe factory in Kampong Speu, Cambodia, on Thursday

Read more

Spate of recent shock departures by 50-something CEOs While the rising financial rewards of running a modern multinational have been well publicised, executive recruiters say the pressures of the job have also been ratcheted upOn approaching his 60th birthday...

Read more

UK Uncut loses legal challenge over Goldman Sachs tax... While judge agreed the deal was 'not a glorious episode in the history of the Revenue', he ruled it was not unlawfulCampaign group UK Uncut Legal Action has lost its high court challenge over the legality...

Read more

The Week in Solar: ‘Too Big To Fail’ Moment Arrives for China

Category : Stocks

NEW YORK (TheStreet) – Maxim Group analyst Aaron Chew was thinking about Trina Solar debt covenants this past week when digesting the China-based company’s second straight quarterly loss. Trina’s debt covenants stipulate that it must be profitable in a 12-month period or be in breach of its bank lending requirements.

With a combined loss per share of $1.38 over the past two quarters, Trina would have to earn at least $1.39 in the first half of 2012 to not breach this debt covenant. This isn’t just a heroic earnings target, Chew realized, but is in fact an impossible dream. The first half of 2012 isn’t expected to be more than break even to marginally profitable for any Chinese solar company.

Then Chew came to the real issue at the heart of the Trina debt covenant: There is no real bankruptcy risk when it comes to Chinese solar because the Chinese government and Chinese banks have too much invested in the sector. If the Chinese banks can’t carry these solar companies on their backs forever, just how they lessen the load a little has always been the opaque road to which the Chinese solar manufacturing onslaught has been leading.

Click to view a price quote on TSL.

Click to research the Electronics industry.

Read more: The Week in Solar: ‘Too Big To Fail’ Moment Arrives for China

Penny Stock Picks

Post to Twitter

Post a comment