Evergreen Solar Shares Now Under $1.50

Evergreen Solar (NASDAQ:ESLR) shares continue to slide and are now trading at $1.42.  Since mid-September Evergreen shares have fallen 30% and continue to creep toward its 52-week low of $1.

Last month Ardour Capital set a $1 target price on Evergreen (ESLR) shares and Citigroup (NYSE:C) did the same, it appears the analysts are convinced that Evergreen is only worth one buck.  For the first nine months of 2009, Evergreen Solar lost about $167 million and Wall Street is worried about the company's cash position and ability to survive going forward, namely Chinese competitors.

Last week Evergreen said that it’s only going to expand in China. To survive, spokesman Chris Lawson said, Evergreen needs China’s deep subsidies and cheap labor.
“We will likely shift some or all of our panel assembly work to China, because we just can’t compete with the low cost of Chinese labor.. The lack of capital and the lack of demand drove the average selling prices (of solar panels) down 40 percent."

GO CHINA
(BostonHerald.com) When Evergreen was building its $430 million plant in Devens, the state gave the company more than $58 million in aid to defray costs. Last month, Evergreen sparked outrage when it announced it was moving its panel-production work to China.

Lawson said the company’s Devens plant - where some 800 people work - will remain open.

The downward price channel on Evergreen shares is really taking shape, the question is when will it stop?

Discliamer: No positions in any of the securities mentioned in this publication.