Pv Crystalox Solar Share Discussion Threads

[zcaprd7] 01/7/2015 01:54

Interim results were 21st August last year...

[zcaprd7] 26/6/2015 12:44

Don't know. It has been dragging on a bit. I believe we still have sone outstanding legal claims, so maybe they'll wait until they are settled?

[zcaprd7] 22/6/2015 11:54

More spread shenanigans

[zcaprd7] 09/6/2015 20:21

I thought it might end the day up. The spread midnight is higher than the quoted price....

[zcaprd7] 09/6/2015 13:38

Odd spread and quote?

[zcaprd7] 05/6/2015 17:41

Topped up today

[zcaprd7] 22/5/2015 22:14

A few. They increased their headcount last year... Not sure what's going on, but I suspect an MBO at about 16p a share.

[meijiman] 21/5/2015 11:48

What is the point of this company -to provide salaries for a few individuals?
Or is there anything more to it. Thrown away huge sums of of money on worthless projects eg Bitterfeld.

[zcaprd7] 15/5/2015 15:13

Hmm. Still moving up. Thought my 10p was lost money!

[hugepants] 06/5/2015 11:15

Perhaps Hawkwood are still buying?
GED and THAL both worth a look. They have similar value characteristics.

[zcaprd7] 05/5/2015 18:06

At last. A move over 10p...

[aishah] 02/4/2015 11:37

Hawkwood Deep Value Fund Limited - holding over 6% now.

[zcaprd7] 27/3/2015 15:12

Is currency exchange hurting them or not?

[profdoc] 26/3/2015 16:16

For what it is worth, I agree with Spob that a good option is a winding up
But it is not the only one. Thaargs' question "Can PVCS last long enough to see it out" is a good one. The managers are going to give it one more shot.

The key to the future of PVCS is contained in the following sentence written by the CEO, Ian Dorrity: “The Board continues to view positively the growth prospects for the PV industry but is also mindful of the need to protect shareholder value. Accordingly it will be imperative during the forthcoming period to establish definitively whether the Group can achieve a cost structure which is compatible with market pricing.”

My interpretation is that if the two new customers in Taiwan (already 61% of revenue), or other new customers, do not start paying a price for wafers above the cost of production the company will gradually or suddenly shutdown, or look for a buyer.
It could generate more shareholder by selling off inventory (€28.6m) to add to its cash pile of €24.6m to give more than the current market capitalisation of £15.6m to shareholders (the BS is a little more complicated than this, I’ll go into that later - see

So, we are now in Big Decision Time territory. Either get into profit or get out.

I hope the managers mean it because I estimate that they are currently losing around £1m per month, so the BS strength is being dissipated. It might all disappear while the directors wait for the market price of wafers to recover.

Here is the background evidence leading to these conclusions: (sorry can't post anymore here - ADVFN won't let me).

However, I'll sneak in this response to HugePants' question: I have had a stab at the loss rate (posted in tomorrow's Newsletter).
"However that still leaves the issue of dissipation of the company’s cash on profitless production. To see how large this is I’ll try to calculate the losses after removing the influence of polysilicon supplier obligations:
• Start with reported loss of €4.65m
• Add back the onerous contract charge €8.20m
• Add back “expense of unwinding provision discounting charge” of €2.40m
• Deduct “Other income” (mostly compensation from bust customers) because this is a one-off: €12.1m
• Deduct currency gains (another one-off): €9m
• Thus underlying loss for the year is €15.15m. That is a loss per month of €1.3m or £0.93m."
Any thoughts? Anything I've missed?
Glen

[zcaprd7] 24/3/2015 15:18

Hmm. Could drift lower. I will keep topping up for my sipp...

[bigdazzler] 19/3/2015 19:36

Well all I know is I got out at around 10.5p today, took a little loss. Clearly think now there will be weakness.

[zcaprd7] 19/3/2015 19:30

Well, I've put some of my special dividend in today....

[zcaprd7] 19/3/2015 13:43

They've spent money on inventory... The operational position isn't that bad, as long as the inventory gets sold. And it looks like the bought inventory at a very low price...

[hugepants] 19/3/2015 13:07

Anyone any idea the current ongoing losses? At a glance the P/L shows currency gains of E9M and also E12M of other income which includes the exceptional E8M from one of their customers. Despite this they posted a loss of E4M. If there are no currency gains this year and no "other income" then losses could be substantial?? Or is this being simplistic?
I assume it cant be that bad otherwise they would just wind the business up.

[thaaarg] 19/3/2015 08:40

Net cash and inventories need to be looked at together. Up E1M.

Shares still trading at cash value though (cash = 11.07 p pershare).

Net Current Assets = 22.27p pershare
Net Assets = 35.45p per share

The big onerous silicon supply contract expires 31/12/15, which should reduce costs enormously.

Can PVCS last long enough to see it out?

And whilst PVCS have been playing ball with their silicon suppliers, PVCS's wafer customers have not. Big settlements have already been received over the last few years, a smaller one to follow in 2015, plus a potential significant settlement from the following customer in due course, quote:

"The final remaining long-term contract customer is one of the world's leading PV companies which has failed to purchase wafers in line with its contractual obligations. Despite negotiations over the last two years we have been unable to reach an agreement on pricing which would enable us to resume the supply of wafers. Due to the absence of any substantive progress it has become necessary to seek resolution through arbitration and a request has been filed recently with the International Court of Arbitration of the International Chamber of Commerce (ICC) in Paris."

Still high risk, but I'm holding.

[spob] 19/3/2015 08:19

Inventories up significantly

And they have taken on more employees and given them a payrise

clueless


this company should be wound up and funds distributed while there are still funds to distribute

WAKE UP PVCS !!