Solar Gainer: Hoku Scientific
POCATELLO, ID (TheStreet) -- It was a longer-time coming than originally anticipated, but Hoku Scientific finally received the rest of the financing its needs to complete construction of its polysilicon plant in Pocatello, Idaho.
Hoku, the Honolulu-based solar company that has been on a declining share price trend since July 2009, was up 6% on Tuesday morning. Hoku announced late Monday that it received the second installment of a total $50 million loan to finance construction of a plant.
Hoku Scientific, based in Honolulu, said the second tranche of $30 million from China-based Tianwei New Energy Holdings was delayed for two weeks due to the Chinese government approval process. However, analysts who cover Hoku had previously stated the financing for the plant had not been proceeding according to plan.
In December, Tianwei New Energy became the majority owner of Hoku Scientific, with control of 60% of Hoku's outstanding shares. In return, Tianwei canceled $50 million in Hoku debt, and agreed to loan Hoku $50 million.Hoku stock tends to move in a volatile fashion on any news related to the plant, and the plant's potential customers, as there have been questions about the financing and customers sticking around during the period of uncertainty. When Solarfun Power (SOLF) announced in late 2009 that it would stick to its payment schedule with Hoku even amid a delay in the plant's financing, Hoku shares gained 20% in one-day. In the announcement about the second tranche of plant financing, Hoku confirmed receipt of $4 million in prepayments on March 1 from Solarfun. Hoku has previously announced delays in polysilicon shipments to customers based on the plant's timeline for completion. The total proceeds of $54 million from the two agreements will be used to pay down past-due vendor balances and liens, and continue development at the polysilicon plant, Hoku Scientific said. Meanwhile, investors and analysts may still have larger questions about the building of a polysilicon plant at a time of depressed prices for polysilicon on the spot market. -- 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
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $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
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV