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$64.32 1.50 (2.39%)
7/3/2008 1:00 PM

SunPower Corp (SPWR)

CAPS Rating:
***

The Company designs, develops, manufactures, markets and sells solar electric power products, systems and services based on its proprietary processes and technologies.

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Avatar dwot (99.99) Submitted: 11/15/07 9:44 PM : Underperform Start Price: $37.17 SPWR Score: -84.25

A P/E of 526 with a market cap of $4.55 billion...

There is no question that this looks like an amazing product to me, but it hasn't been proven for any length of time on the market and it needs to get earning up about 25 fold to justify the current share price.

Dig deeper and what did I find about the technology around p 53 of the last quarterly report...

"In addition, another major supplier of solar panels notified us of a product defect that may affect a substantial number of panels installed by SP Systems between 2002 and September 2006." It doesn't say what the defect is, but like I said, not a proven technology.

This one is priced for perfect execution of plan and enormous sales growth. It simply isn't realistic.

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Avatar dwot (99.99) Submitted: 4/13/08 4:41 PM

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I am sticking with my thoughts on this one. It has to grow earnings about 30 fold to justify the price, an enormous expectation.

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Avatar dwot (99.99) Submitted: 4/17/08 4:39 PM

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So, earnings at 15c/share now....

So, 4 quarters that's 60c. With a P/E of 15 is $9/share. Even with 500% growth, that's $45/share max...

I do not get why the market cap on CAPS is $4 billion and $8.5 billion on WSJ.

http://online.wsj.com/quotes/main.html?symbol=SPWR&type=djn&mod=WSJBlog&mod=WSJBlog

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