David BaskinTimminco Ltd.TIM.TODON'T BUYApr 22, 2008
One of the most interesting and controversial stories on the TSX right now. One side says they have found a way to make solar panel grade silicon cheaper than anyone else in the world and will soon go into large-scale production. Others say it is a scam and haven't invented any new process. Wouldn't speculate on this one.
The production quality and quantity never hit what they expected. They had all these customers they pre-paid and had to give back shares. He runs as fast as possible from this situation.
Used to follow it before the incredible run. There were always questions about the technology of the company. He doesn’t bite into something he doesn’t understand. He would steer clear of it.
Used to like this company a lot but doesn’t like it all now. Failed to meet expectations, kept running out of money and giving away shares to solve their pre-payment problems.
This is a long-term view that the price of oil is going to go up in the future. If that comes to be true, there has to be other ways to produce electricity. Solar energy is probably one of the best ways to do this. Almost every stock in the solar industry got crushed last year because of the drop in the price of oil. If you still believe in the solar industry for the next 10 to 20 years this is one that will be producing.
This has become a speculative situation. Market had thought their silicon production was going to be commercially viable and demand would be strong. There are now doubts about their process and that it is scalable.
They still need to get their act straightened out. Give it a few quarters to perform. Massive overhang in terms of the number of short sellers getting into it. Also some technical issues.