Evergreen Solar Shares Struggle at 67 Cents

Evergreen Solar (NASDAQ:ESLR) shares hit a new 52-week low last Friday at 62 cents per share, today the stock is trying to get back above the 70 cent level as it racks up a YTD loss of -55%.

Over the past 12 months Evergreen Solar Inc (ESLR) shares have traded between $0.62 and its 52-week high of $2.45.  Evergreen Solar Inc shares are struggling to stay trading on the Nasdaq, its shares are now trading with a P/E Ratio of 0 and EPS of -1.18.

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Evergreen Solar Inc 's (ESLR) current market cap has been reduced to $139 million but its shares have moved up 8.82% from its 52-week low.

REVERSE STOCK SPLIT HOPE
Evergreen Solar is asking its shareholders to approve a one-for-six reverse stock split at its annual shareholder meeting on July 27.

The reverse stock split would reduce the number of Evergreen shares from 450 million to 120 million and buoy the share price. With the stock price so depressed, Evergreen runs the risk of being delisted from the Nasdaq, which requires a minimum share price and market capitalization of the companies traded on the exchange.

The chart doesn't lie on this stock, its a gamble at this point until the company can get it share price under control. 

(wbJournal.com) In April, Evergreen made a $165 million convertible note offering, essentially selling company debt to investors in order to pay off other debts.

The notes sold are secured by a first priority lien “on substantially all of the assets owned by Evergreen Solar and the guarantors” with certain exceptions, the company said.  While the offering brought in capital, it came at a price.

“That’s very expensive money,” according to Pavel Molchanov, an analyst at Raymond James , explaining that the notes carry an interest rate of 13%.

Under terms of that and a previous offering, “a delisting from a national exchange market could result in a default, requiring the company to pay all of the outstanding notes in cash,” the company warned in an SEC filing.

What Evergreen is doing is buying time until it can crank out solar panels from its factory in China. Its cash balance of $130 million “is adequate to get Chinese operations up and running,” Molchanov said, and the company hopes to do so by July 1st. 

Hello July 6th, now the Street awaits Evergreen Solar's latest venture to get its spending and future on solid ground.

SOURCE: http://www.wbjournal.com/news46676.html