Hoku Recovers From Shipment Delay
HONOLULU (TheStreet) -- Solar raw material provider Hoku Scientific (HOKU) was down close to 2% in the pre-market session on Thursday morning after it said an amended agreement with Shanghai Alex New Energy would delay the first shipment of polysilicon to the third quarter of 2010, from the first quarter.
Trading in Hoku shares has proven extremely sensitive to any news, both positive and negative, like many thinly traded stocks in the solar sector. Still, the pre-market drop was quickly erased at the opening bell, and Hoku shares were flat by late morning Thursday.
News of a delayed shipment to a Hoku client will not help to ease any ongoing concerns from the market about oversupply in the solar industry. However, Hoku is still in the process of building its poly plant in Idaho.Hoku tried to strike a positive note in its announcement about the delayed shipment: "Hoku was prepared to ship third-party product in accordance with our contract, but the updated schedule more closely matches Alex's revised supply chain forecasts while still conforming nicely to our projected production ramp. This amendment adjusts the timing of our first delivery to Alex to a date that is amenable to both companies," said CEO Dustin Shindo. In March, Hoku Materials entered into an deal with Chinese solar cell maker Alex to sell polysilicon over a 10-year period beginning early 2010. -- Reported by Eric Rosenbaum in New York.
>>See our new stock quote page. Follow TheStreet.com on Twitter and become a fan on Facebook.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV