Hoku Scientific, Inc. (HOKU)

majakblue (< 20) Submitted: 7/13/07 8:45 PM : Start Price: $14.35 HOKU Score: 31.05

At first I saw the contracts with Solar-Fabrique, Sanyo and Suntech and thought, this company will grow and do well. But then I found that the factory to produce the polysilicon has to be built. They had announced the plan in 2006 to build a plant capable of producing 1500 metric tons. Then they increased the design to 2000 metric tons. Then they increased it to 3000 tons and the estimated total construction cost has not been determined at this time. They plan to finance the construction costs through advance payments from Sanyo and Suntech of over $211 million and advance payments from new customers.

They were going to be in the solar module manufacturing business, but cancelled plans to construct a factory in Hawaii. They will sell their solar cells, probably at a big loss.

They were also going to manufacture fuel cell membrane and membrane electrode assembly products, and constructed a 14000 square foot facility. They had a contract with the U.S. Navy but somehow that business wasn't profitable so they downsized their workforce and are planning to sell the factory and relocate to a smaller leased warehouse and office space on Oahu.

For some strange reason I began to distrust the management of this company. hmmmm.

Report this Post Replies: 0 | Reply