You Ask, Kusick Answers: Solar, GE, GM
Stockpickr Staff
02/26/09 - 09:17 AM EST
Updated from Feb. 25
Throughout the trading week on
Stockpickr Answers, investing professionals answer questions posed by members of the Stockpickr community.
Wednesday,
Larsen Kusick responded to a round of timely questions.
Here are a few of those questions and Kusick's answers.
Thoughts of buying Evergreen Solar (ESLR Quote) around $1.00. I feel like the government is going to be
subsidizing this industry within the next year or two. Stock was at 12 bucks less than a year ago. This stock could be a 200%, 300%, 500% return on equity in the next two years? [What are] your thoughts?
Kusick: ESLR is interesting because they've been focused on maximizing efficiency using
their "string ribbon" technology. I agree with your take on pro-solar legislation, but it's not something that's a year or two away -- it's already in existing legislation.
The bigger issue for the solar industry is the lack of financing available for customers looking to go forward with big solar projects.
First Solar (FSLR Quote) management just came out and said the near-term picture is worse than they've ever seen.
To read more, visit Stockpickr.com.
If GE's (GE Quote) infrastructure business is worth (supposedly) $8.00-$8.50 a share, then how much is the financial arm worth?
Kusick: I would take this further and say that the market is applying a negative value to the Capital Finance unit based on the fact it holds deteriorating assets linked to both real estate and consumer credit, as well as some mortgage exposure.
To read more, visit Stockpickr.com.
General Motors (GM Quote). Yesterday, 25% gain. Today, about 10-15% up again... What news is pushing this stock up?
Kusick: GM is a company that doesn't appear to have a future that doesn't involve massive help from the federal government. Most investors believe the only reason it won't go bankrupt is as a result of this intervention. As a result, it's difficult to place a confident value on the common stock.
It may not be company-specific news, but GM isn't the only stock in the market that fits the above description.
To read more, visit Stockpickr.com.
Updates: "GM Posts $9.6 Billion Loss, Sales Dive 34%" and "Opinion: Lessons from GM's Board of 1992"
Who's scheduled to be on Stockpickr Answers next?
Thursday, Feb. 26: Dan Fitzpatrick
Friday, Feb. 27: David Peltier
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