Evergreen Solar's Lack of Guidance Tanks Stock

Evergreen Solar, Inc. (NASDAQ:ESLR) shares are struggling to stay above $1.80 a share after a lack of foward guidance on yesterday's earnings call is pushing down shares 18%.

Results aside, the biggest blow to Evergreen Solar shareholders was the missing forecast for 2009.  Evergreen's CEO Richard Feld said these painfull words and shares dropped after-hours yesterday with each hanging word: "Nevertheless, we are in these unprecedented times we, like many other companies will not be giving our typical quarterly financial guidance. There are too many variables beyond our control to adequately project financial performance."

How true that statement may be, but without a guidance to go on, where does that leave shareholders?  How can you stick with the stock if you have already lost 80%+ in the last year?  Even if you bought Evergreen shares a month ago, you would already be down 47% from that $3.50 entry point.

Piper Jaffray & Co. downgraded Evergreen Solar, Inc. (ESLR) from Buy to Neutral this morning and lowered his price target from $5 to $2.50.  This time, the analysts are right on the money, at least Piper.  Piper analyst said, "We are downgrading shares of ESLR to Neutral for the following reasons: 1) it is rapidly losing its polysilicon cost advantage as polysilicon prices approach $100/kg and as competition intensifies in an oversupplied environment; 2) we have little visibility into the financial impact of the company's newly announced strategy to outsource production in Asia; the company's profitability as a result of its planned Malaysia facility is now excluded in our model; and 3) the company's balance sheet leaves little flexibility for pursuing alternative expansion strategies in Asia."

Expect more negative comments from analysts covering Evergreen, here is what we have thus far today:
Date Brokerage Firm Action From To Old New
06-Feb-09 Janco Partners Reiterated   Mkt Perform $4.5 $3
06-Feb-09 Kaufman Bros Reiterated   Buy $13 $6
06-Feb-09 Piper Jaffray Downgraded Buy Neutral
 

Read the StockMasters perspective at their site, link provided: Say it Ain't So - Evergreen Solar (ESLR) at $1.80 a share?