Alex Ruus
Arise Technologies Corporation
APV-T
BUY
Feb 04, 2008
A solar company. Very interesting technology. If they can execute on everything they are doing, it could be a good winner. Solar is a good space to be in.
There have been some delays, which is one of the reasons the stock has not performed well. This is not one of his favourites. They need to execute better.
Have 3 parts. 1) Manufacturing facility in Germany that is largely subsidized by the government. 2) Installation of devices on roofs to capture power. Payback is roughly 15-20 years. 3) Growing silicon for semiconductors. Better companies available.
Whole solar sector ran up on a view that solar was going to come into a much bigger part of the energy mix. It will take some time and will require incredible patience.
Solar is in a bit of an eclipse. Across the board in the solar sector there are capacity cuts and supply cuts and companies are downgrading guidance. Solar will be massively in overcapacity in 2009 based on fundamentals. This company has some new interesting technology but it is not ready yet. A wildcard is what governments do.
If you are going to have only 1 or 2 clean technology stocks this is not one that should be on your list. Very early days. They are looking to exploit some university research.
Has always liked management but it has been a serial disappointer. Had to do a massive dilution in the share count earlier this year. Will also be beholden to subsidies for green energy (solar energy) in Germany.
Have a solar manufacturing plant in Germany and expanding into an installation location in Ontario where government has indicated a strong incentive to install solar residentially and commercially. Emerging growth story but not in his database.
Manufacturer of solar cells, particularly in Germany. Their big challenge is that the German market is over 40% of the global installed base for solar. Governments around the world are cutting back on solar subsidies.
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