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odyd

JA Solar (JASO)

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These guys already operating in the sweet spot area..cells. The only concern right now...is ...under utilization. Hopefully the Cypress tech...keeps them busy selling modules and increase their market share.

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If it weren't for the under utilization now JASO would be one of the best solar 11 buys.

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Explo, JA's cell capacity is stone around their neck right now. Their technology well advanced by markets are narrowing for them. ReneSola looks like a visionary with not having cell capacity. They can buy cells from anyone but Mainland and build their modules. I think ReneSola can think of expansion outside of China.

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Yes...Also Renesola can build the latest and the greatest cell lines..if they want to. Cell automation has been advanced quite a bit..with all those laser spot welding etc.

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Yes, I think utilization is a key to avoid balance sheet deterioration. Especially for upstream businesses. Look how LDK's balance sheet is doing compared to SOL's. Utilization of course only means something if you quickly can turn the inventory at non-dumping prices. SOL sells wafers at full capacity and premium prices. No one else is in this position now. I think they are kind of passing a tough test here. Not only is their world (PV industry) on fire, Goliat (GCL) also challenged them during this time, and surprisingly SOL is standing most steadfast.

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JA beat the guidance. Huge numbers in China, we saw that in our article, so I am happy we did not missed it. 0.72 is better than Jinko's 0.68 so geography is playing big time as Japan and Austalia offsets JA a lot better than Jinko's overseas shipments. Nice work on the BS by JA as well. $16M cash out but $83M of debt out with it. Good cash flow. I think the light is there at the end of the tunnel. With prices holding for 3 weeks in ASP, things can get interesting in January once more. I am really happy with Synergy going to have plant in Turkey, moving equipment from China, what a ballsy move.

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Couple of days old news. JASO is in a similar situation as SOL, with a brandless module division taking a lot of market-share and becoming the biggest revenue division of the company. This poses the question whether they'll continue to focus on the core cell business or focus primarily on module sales driven by their cell technology. Maybe the leadership change is related to this questions?

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