Evergreen Solar One Buck a Share

It was a bad day for every public company, but Evergreen Solar (NASDAQ:ESLR) got down to $1.03 a share and finished the day at $1.05.

Evergreen Solar, Inc. has a 52-week range of $12.64 to $1.02, at this rate we may see a new low for ESLR.  There hasn't been any "real" news that has taken down Evergreen shares over the past few days, everything is falling and the solar sector is no exception. Last week UBS Solar analyst Stephen Chin had this to say about Evergreen:

Evergreen Solar (ESLR): Chin cut his rating to Sell from Neutral, reducing his target to $1, from $2.25. “With polysilicon spot market prices normalizing to around $125/kg, down 50% year over year, we believe a focus on Evergreen’s non-polysilicon costs will become more important givne the low-cost advantage of Chinese solar companies such as Yingli,” he writes. “Given our new industry view of a 2GW oversupply of solar modules in 2009, we expect Evergreen may have difficulty extending its solar customers longer payments terms as it has $153 million in cash but has $135 million in capex and outsourcing commitments.” He says a lack of cash will limit Evergreen’s ability to invest in customer projects, as First Solar and SunPower are now doing.

Hang in there investors, at some point Evergreen has to show some value to the analysts covering the stock, until then, use caution.