Might Have to Start Taking Evergreen Solar (ESLR) Seriously - Another Huge Contract

Evergreen Solar (ESLR) has the distinction of being one of the oldest publicly traded solar companies, and also the one that has been unable to turn a profit. This one has been around so long it was around near the end of the last bubble (NASDAQ) destruction. But perhaps like Energy Conversion Devices (ENER) - this "hope" stock has finally turned the corner. At the least I have to start taking it seriously. Today's $1.2 Billion contract along with a $600M set of orders announced last month brings them nearly $2 Billion of new business, and a backlog now at nearly $3 billion. And now up to 5 customers - today's customer is a serious player in Europe.

• Evergreen Solar, Inc. (Nasdaq: ESLR - News), a manufacturer of solar power panels with its proprietary, low-cost String Ribbon™ wafer technology, announced it has signed a new long-term sales contract valued at approximately $1.2 billion with German-based IBC SOLAR AG. This contract extends through 2013 and brings the company’s total contractual backlog to nearly $3 billion with 5 customers.
• “We are very pleased to begin this significant long term relationship with IBC SOLAR, the largest PV distributor in the world”
• The solar panels for these take-or-pay contracts will be manufactured at the Company’s new 160 MW facility in Devens, Massachusetts, which opened in June, and at the Company’s next factory, which is expected to open in 2010. To date, the Company has contracted approximately 70 percent of Devens expected capacity through 2010 and all of Devens capacity in 2011 through 2013.
• To date, IBC SOLAR has installed more than 350 Megawatts (MWp) of photovoltaic power at more than 50000 solar energy facilities around the world.

But of course, "solar is all hype" ;) If even the "black sheep" in the group can do this - it should bode well for the rest. Of course the open question is how profitable will these contracts be but with so many moving parts in the industry this is impossible to estimate.

Evergreen Solar won't be profitable in 2008, but current projection is nearly 50 cents in 09 and I assume all these contracts are going to make 2010-2011 pop nicely. This is one of the few times I'd actually like to get my hands on an analyst report to see what they are projecting for the out years. Damn shoe string budget ;) The stock is up 6-7%; on a normal day when the market was not in free fall, this type of news would drive this sort of stock 20%+.

Long Energy Conversion Devices in fund and personal account