Major investor in SOLF caused SOLF to soar in Dec.
but slowly SOLF has dropped below the price it was at when news hit
the wires about major investor stake in SOLF. This is all good for us
fast money folks that can take quick action and load up at the cheap
ahead of earnings. If Good Energies thought this was a good investment
at this price by increasing stake to 34%+ then so do I.
Investment Lifts Solarfun Power
12/04/07 - 04:47 PM EST
Shares of Solarfun Power (SOLF - Cramer's Take - Stockpickr) flew
skyward Tuesday after a major shareholder vaulted its stake in the
China-based solar-power chipmaker to more than one-third.
Good Energies, a privately held firm that specializes in
renewable-energy investments, agreed to buy about another 66.7 million
shares and 281,000 American depositary shares from existing
stockholders. Some of that stock will come from Chief Executive
Yunghua Lu, who will sell half of his Solarfun interest, leaving him
with a 16.1% ownership stake.
The transaction should close in the first quarter, when Energies'
stake in Solarfun will surge to around 34.7% from the current 6.3%
level. Another Energies representative, as well as a new independent
director, will join Energies Investment Officer Sven Hansen on
Solarfun's board. Hansen has served on the board since August 2006.
Richard Kauffman, CEO of Good Energies, said his firm is eager to help
Solarfun "achieve its long-term vision," and views the company as "one
of the best manufacturing platforms for [photovoltaic] products in
Asia" with "tremendous opportunities for growth."
Solarfun, for its part, hopes to leverage Energies' "expertise,
resources, and track record of successful investments in the solar
Solarfun shares rocketed $5.65, or 27.4%, to close at $26.25.