I’ve ragged about Solyndra before. There’s weird stuff going on with this company who even after obtaining a $535 million government loan guarantee and venture capital funds has suffered the inability to go public. They had to lay off employees and shut down one facility immediately after California’s Prop 25 initiative failed (the one that would have neutered California’s global warming law AB32). They’re now being investigated by Congress (House Energy and Commerce Committee) and their CEO recently bailed out. All in all it doesn’t appear to be a pretty picture for Solyndra, California, or their green jobs poster boy Governor Jerry Brown.
Wall Street Pit has some pretty damning information not only about Solyndra but the solar industry in general:
Solar stocks have been a terrible investment over the past few years. Some of the big public names have been hammered.
FSLR – First Solar = -65%
LDK – LDK Solar = -88%
ESLR – Evergreen Solar = -100%
SPWR – SunPower = -88%
Regarding their failed IPO:
What was in the prospectus wass (sic), no doubt, the real reason that investor chose to take a ‘pass’ on the deal. There were revenue/expense numbers for the nine months preceding the proposed deal:
Cost of Goods Sold: $108.0mm
That is an absolute complete disaster. This is a low margin business to begin with. At Solyndra they were losing 84 cents for every dollar of sales.
Based on that and the rest of what’s in this article about Solyndra, one has to wonder how much longer they’ll be in business. Will they do what Evergreen Solar did and move their operations to China and then file bankruptcy to get out of their massive debt in the United States?
Or, will some other state offer them greener pastures like these two companies, who couldn’t get away from California’s high taxes, business stifling regulations, congestion, high housing and labor costs fast enough.
Sooner or later reality has to hit the people who think solar and wind provide magic free electricity. Until then it’s more CO2 Insanity.
Source: Wall Street Pit