by Shawn Kravetz
In the second quarter, solar stocks were impacted by broad energy sector declines on global macroeconomic concerns (most notably Greece and China). This negative sentiment has continued unabated into July exacerbating the disconnect between fundamentals and perceptions.
JA Solar (NYSE: JASO)
epitomizes this dislocation. In the second quarter, solar stocks were impacted by broad energy sector declines on global macroeconomic concerns (most notably Greece and China). This negative sentiment has continued unabated into July exacerbating the disconnect between fundamentals and perceptions.
We at Esplanade Capital Electron Partners (ECEP) owned JA Solar prior to June 5, believing the company to be worth ~30%+ more than the share price. On June 5, JA Solar received a takeover offer from its Chairman/CEO and parent company at a 20% premium.
After a short-lived, modest rally, the shares have fallen to levels below where they were trading prior to the takeover offer. We have added to this position, and while we continue to assess the deal and market risks, we remain confident that JASO will yield a 33% return in roughly six months when we expect the deal to close.
JA Solar represents but one example of our robust portfolio whose potential upside continues to grow as the dislocation between fundamentals and market perception expands.
http://www.altenergystocks.com/archives/2015/07/ja_solar_underpriced_solar_stock_becom es_more_undervalued.html
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