Senseless Chinese Upper-Case Alphabetic Quality Expenditure: Trina Solar Edition
The 1 affair nosotros know close on this blog.
Trina Solar reported yesterday. Bad numbers equally expected. To quote them equally to the glut:
What is foreign though is that despite the provide glut the upper-case missive of the alphabet expenditure inwards this concern - that is edifice novel found in addition to mechanism - goes on regardless.
Here is a delineate of piece of job from the residual sheet:
Property found in addition to equipment at Trina went from 571 1000000 to 920 1000000 inwards 1 year. And inwards the twelvemonth when the manufacture became hopelessly oversupplied.
Moreover the charge per unit of measurement of increase accelerated in the 4th quarter when the oversupply was obvious to anyone to run into - when anti-dumping cases against loss-making Chinese solar panel makers became vogue.
There are lots of things that mightiness endure going on here. The fellowship mightiness convey a non bad novel engineering which is worth investing inwards fifty-fifty though the manufacture is glutted (indeed the fellowship points to its "honey" technology). Or the fellowship mightiness endure insane. I convey my thoughts but I exercise non convey plenty noesis to endure certain.
But 1 friend suggested that this is only an analogue for all of China. Who cares if utilisation buildings are glutted? Just laid more. Who cares that the high-speed-rail betwixt 2 cities you lot convey never heard of, a railway delineate of piece of job that consumed valuable steel in addition to concrete past times the millions of tonnes is by in addition to large run at a tertiary capacity alongside empty trains? Build more.
"Build it in addition to they volition come" may endure the Chinese mantra. Usually exclusively plant inwards Hollywood films.
John
PS. I should discover that Bronte nevertheless has a short-biased straddle on Trina - but it is a much smaller position. We unopen a fair chip for net - but traded that chip non hence well. I should convey covered the brusk terminate to a greater extent than aggressively when the stock was $6.
Trina Solar reported yesterday. Bad numbers equally expected. To quote them equally to the glut:
Despite this achievement [which inwards Trina's illustration was increased sales], growth inwards worldwide module capacity in addition to peaked channel inventory resulted inwards significantly lower production prices which adversely affected our bottom delineate of piece of job results, whereby our cost reduction was non sufficient to commencement lower ASPs [ie average selling prices].I hope you lot I am non telling anyone anything novel here. If you lot are an investor inwards the solar-panel manufacture in addition to convey non noticed a provide glut hence you lot are completely non-observant.
What is foreign though is that despite the provide glut the upper-case missive of the alphabet expenditure inwards this concern - that is edifice novel found in addition to mechanism - goes on regardless.
Here is a delineate of piece of job from the residual sheet:
Trina Solar Limited | |||||||||
Unaudited Consolidated Balance Sheets | |||||||||
(US dollars inwards thousands) | |||||||||
December 31, | September 30, | December 31, | |||||||
2011 | 2011 | 2010 | |||||||
Property, found in addition to equipment | 919,727 | 783,328 | 571,467 | ||||||
Property found in addition to equipment at Trina went from 571 1000000 to 920 1000000 inwards 1 year. And inwards the twelvemonth when the manufacture became hopelessly oversupplied.
Moreover the charge per unit of measurement of increase accelerated in the 4th quarter when the oversupply was obvious to anyone to run into - when anti-dumping cases against loss-making Chinese solar panel makers became vogue.
There are lots of things that mightiness endure going on here. The fellowship mightiness convey a non bad novel engineering which is worth investing inwards fifty-fifty though the manufacture is glutted (indeed the fellowship points to its "honey" technology). Or the fellowship mightiness endure insane. I convey my thoughts but I exercise non convey plenty noesis to endure certain.
But 1 friend suggested that this is only an analogue for all of China. Who cares if utilisation buildings are glutted? Just laid more. Who cares that the high-speed-rail betwixt 2 cities you lot convey never heard of, a railway delineate of piece of job that consumed valuable steel in addition to concrete past times the millions of tonnes is by in addition to large run at a tertiary capacity alongside empty trains? Build more.
"Build it in addition to they volition come" may endure the Chinese mantra. Usually exclusively plant inwards Hollywood films.
John
PS. I should discover that Bronte nevertheless has a short-biased straddle on Trina - but it is a much smaller position. We unopen a fair chip for net - but traded that chip non hence well. I should convey covered the brusk terminate to a greater extent than aggressively when the stock was $6.
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