Sanditon Investment Share Discussion Threads

[entini] 28/5/2007 14:55

It's been 10 days since the last RNS. If you look how frequent they come i would suggest we could have another this week.Good luck to al holders.

[krupatel] 28/5/2007 14:50

yeah 4QM8, it doesn't come anywhere near asparks's detailed and informative analysis on SIT ! ;-)



asparks - 11 May'07 - 16:33 - 2132 of 2254


methinks monday will be a BLUE day

[asparks] 28/5/2007 14:48

4QM8
wrong thread. + poor analysis too

[786abdul] 28/5/2007 11:14

Great article - Thanks asparks!! All looking good for coming days and months

regards

[asparks] 28/5/2007 11:08

23 May 2007
PV Costs to Decrease 40% by 2010
Washington, DC [RenewableEnergyAccess.com]
The solar industry is poised for a rapid decline in costs that will make it a mainstream power option in the next few years, according to a new assessment by the Worldwatch Institute in Washington, D.C., and the Prometheus Institute in Cambridge, Massachusetts.

"To say that Chinese PV producers plan to expand production rapidly in the year ahead would be an understatement. They have raised billions from international IPOs to build capacity and increase scale with the goal of driving down costs. Four Chinese IPOs are expected to come to market this month alone."

-- Travis Bradford, Prometheus Institute, president

Global production of solar photovoltaic (PV) cells has risen sixfold since 2000 and grew 41 percent in 2006 alone. Although grid-connected solar capacity still provides less than 1 percent of the world's electricity, it increased nearly 50 percent in 2006, to 5,000 megawatts, propelled by booming markets in Germany and Japan.

Spain is likely to join the big leagues in 2007, and the U.S. soon thereafter.

This growth, while dramatic, has been constrained by a shortage of manufacturing capacity for purified polysilicon, the same material that goes into semiconductor chips. But the situation will be reversed in the next two years as more than a dozen companies in Europe, China, Japan, and the United States bring on unprecedented levels of production capacity, stated the assessment.

In 2006, for the first time, more than half the world's polysilicon was used to produce solar PV cells. Combined with technology advances, the increase in polysilicon supply will bring costs down rapidly -- by more than 40 percent in the next three years, according to Prometheus estimates.

"Solar energy is the world's most plentiful energy resource, and the challenge has been tapping it cost-effectively and efficiently," says Janet Sawin, a senior researcher at Worldwatch, who authored the update. "We are now seeing two major trends that will accelerate the growth of PV: the development of advanced technologies, and the emergence of China as a low-cost producer."

The biggest surprise in 2006 was the dramatic growth in PV production in China. Last year, China passed the U.S., which first developed modern solar cell technology at Bell Labs in New Jersey in the 1950s, to become the world's third largest producer of the cells -- trailing only Germany and Japan.

China's leading PV manufacturer, Suntech Power, climbed from the world's eighth largest producer in 2005 to fourth in 2006, and PVs have made the company's CEO one of his nation's wealthiest citizens. Experts believe that China, with its growing need for energy, large work force, and strong industrial base, could drive dramatic reductions in PV prices in the next few years, helping to make solar competitive with conventional power even without subsidies.

"To say that Chinese PV producers plan to expand production rapidly in the year ahead would be an understatement," says Travis Bradford, President of the Prometheus Institute. "They have raised billions from international IPOs to build capacity and increase scale with the goal of driving down costs. Four Chinese IPOs are expected to come to market this month alone."

In the meantime, supply shortages have led manufacturers to find ways to use polysilicon more efficiently, and have accelerated the introduction of new technologies that do not rely on purified silicon and are inherently less expensive to manufacture. So-called thin film cells can be made from amorphous silicon and other low-cost materials, and companies developing these technologies have recently become the darlings of Silicon Valley venture capitalists.

Although in the past, thin film cells have not been efficient enough to compete with conventional cells, today over a dozen companies -- including Miasole, Nanosolar, and Ovonics -- are competing to scale up production of low-cost solar modules that can be churned out like rolls of plastic.

"The conventional energy industry will be surprised by how quickly solar PV becomes mainstream -- cheap enough to provide carbon-free electricity on rooftops, while also meeting the energy needs of hundreds of millions of poor people who currently lack electricity," Sawin says.

For Further Information
Prometheus Institute for Sustainable Development
Worldwatch Institute

[norway3] 27/5/2007 12:54

I like the review. Well holding for a few years

[entini] 27/5/2007 11:46

Yes....many thanks Observant.

[norway3] 27/5/2007 10:08

Observant.Thank you

[observant] 27/5/2007 09:58

As requested

Main points in article - PLEASE NOTE DISPLAYED IN REVERSE order:-

Shares recovered a long way from 16.5p last yr, prospects vastly improved. Buy

Company will be loss making in 2007 i.e £2.5m but should become profitable on a monthly basis later this year. In 2008 will see annual profits of £1.5m and in 2009 should see profits of £7.95m. EPS respectively 4.3 cents and 18 cents. giving forward PE 15.2 times.

To date SIT has completed 110 projects - 50 Europe and 60 USA. Projects like Prologis and Tesco in Europe and Walmart in USA could lead to repeat business -already happening with Tesco.

Prospects good, demand strong, USA offering tax breaks for companies investing in solar. In Europe Germany, France, Spain, Italy and Greece strong.
Recent example Italy SIT secured contract worth £5m to provide solar for landfill site - plus a long term revenue share element from power generated.

Past SIT took low margins and no margins to build business share. Current management changed track on margins - now only accepts projects that offer gross margins of 15-20%. Fact gross margins late 2006 running at 19.6%.

UPC Solar appointed SIT's preferred partner for its structured finance projects.Unlike the previous arrangement with GE, where obliged SIT to take on the working capital obligations for each project, UPC Solar will now bear these costs. SIT simply supplies the products and services - leads to improved profit margins. Ditto for European opportunities.

SIT development - Brian Caffyn of UPC Solar JOINS as non executive chairman.

Waiver was rec'd from SIT's banks resulting in £10m fund raising in late 2006 -now steided the ship financially. With £15.75m concertible loan note still outstanding a further fund raise later this year cannot be ruled out - although the aim is to convert much of loan into stock. This month founder Bruce Khouri sold 5m shares and repaid a £1.65m obligation to the company.

Current cost reduction excercise should shave off £1.25m on annual costs.

18months since crash, inventory slashed one third, all £7m inventory now accounted for by sales agreements.

SIT dragged out of a very sticky patch over past 12 months -just in time cos strong market conditions in solar power could not have come at a better time.

[norway3] 27/5/2007 09:38

No copies of IC in village shop where I reside. Could someone give brief summary of the content

[786abdul] 26/5/2007 20:05

Well written in IC this week!! rated 'BUY'!!

[entini] 26/5/2007 15:34

Just been to WHS but all SIT holders have purchased this weeks copy of IC...none left....8-(

[observant] 26/5/2007 13:08

Just read full page article on SIT in IC. Article is very good. Liked the buy note.

[scab] 25/5/2007 17:35

trades looking ok,we need to reflect in share price ,however, shaping up again and here's to a good run soon,-nice weekend all.

[entini] 25/5/2007 15:34

Another jobsworth. I thought it was about sharing our info/research. Maybe i is wrong! LOL!

[emdek] 25/5/2007 15:32

Entini-
Pop down to your to your local WHSmith like rest of us...Niku is too busy accumulating IFL.

[entini] 25/5/2007 15:13

Gaygino....jobsworth imo.

[asparks] 25/5/2007 14:29

OK then, Niku, please paraphrase it. Then you wont be breaking any law!

[jaygino] 25/5/2007 14:27

Entini - you are asking niku to break copyright laws. If you really want to see the article, either go out and buy a copy of the IC, or subscribe to the online version.

[entini] 25/5/2007 13:42

Niku i don't subscribe...would you kindly copy and paste it on here please? Thanks for your time.

[niku] 25/5/2007 13:36

www.investorschronicle.co.uk/tips

[entini] 25/5/2007 13:23

Do you have the link niku? Thanks.