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http://www.prnewswire.com/news-releases/daqo-new-energy-signs-two-year-framework-contract-with-a-leading-solar-pv-company-235998851.html?

 

CHONGQING, China, Dec. 16, 2013 /PRNewswire/ -- Daqo New Energy Corp. (NYSE: DQ) ("Daqo New Energy" or the "Company"), a leading polysilicon manufacturer based in China, today announced that its wholly owned subsidiary, Xinjiang Daqo New Energy Ltd. ("Xinjiang Daqo"), has signed a two-year spot-price polysilicon supply framework contract with a leading solar PV company.

 

According to the terms of the agreement, Xinjiang Daqo will supply polysilicon on monthly basis beginning January 2014 through December 2015. The contract will account for approximately 20% of Xinjiang Daqo's polysilicon capacity in 2014, and 15% in 2015. The selling prices will be discussed and decided based on spot market prices at the time.

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Both DQ and Jinko likes the spot model for poly transactions. It makes it a good fit. Jinko have probably been looking for a solid supplier for their model that can grow with them and handle low prices.

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Guest JulyWebb

Reason? That covers about 220 MW of modules.

You are saying 20% would only be enuf poly for 220 MW?

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Guest singular

Daqo New Energy Corp., a leading polysilicon manufacturer based in China, today announced that the previously announced registered follow-on public offering of American depositary shares ("ADSs") by the Company was priced at US$29.00 per ADS on May 14, 2014. The Company will issue and sell 2,000,000 ADSs. Each ADS represents 25 ordinary shares of the Company. In connection with this offering, the Company has granted the underwriter a 30-day option to purchase up to 300,000 additional ADSs.

 

http://finance.yahoo.com/news/daqo-energy-corp-announces-pricing-020000847.html

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Guest singular

Judging by premarket activity, they are taking it well below offering price. Once price levels out, I am going to consider an entry.

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This could be an opportunity to invest in the name?

 

I agree. 25% dilution, but PPS down more than 25% from top. JKS and CSIQ is down further from their latest offering price though, so hard to say if it will dip to offer market some further discount first.

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I am not as attracted, I do not like DQ trading peaks and valleys and their business is minute. This would have to be a side bet and at relatively high share price, it is not a side bet size to make it meaningful. The gains could be however quick.  This is academic on my part as I am not involved.

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I am not as attracted, I do not like DQ trading peaks and valleys and their business is minute. This would have to be a side bet and at relatively high share price, it is not a side bet size to make it meaningful. The gains could be however quick.  This is academic on my part as I am not involved.

 

I agree. I like cost leadership, but dislike lack of value-chain integration. I'd like to see some tier1 picking up a proven Xinjiang poly plant player like DQ instead of investing in DQ, but with lack of that DQ in a midstream to downstream portfolio could diversify value-chain exposure with its nice poly shortage hedge, since it is so low cost that it should not hurt unsustainably during poly glut.

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Guest Broomhilda

GM: 23.1%

GM (non-GAAP): 30.9%

EPS: $0.57

Prod. cost: $14.13/kg

Cash cost: $11.48/kg

http://dqsolar.investorroom.com/2014-08-15-Daqo-New-Energy-Corp-Announces-Second-Quarter-2014-Results

 

However cautious comments on China demand:

 

"Consider in the first half of 2014 the total newly added installation is around 3.3GW, we strongly believe the market will soon pick up in the fourth quarter due to rising installation especially in China."

 

Ok...  so how bout Q3 if I may ask?

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GM: 23.1%

GM (non-GAAP): 30.9%

EPS: $0.57

Prod. cost: $14.13/kg

Cash cost: $11.48/kg

http://dqsolar.investorroom.com/2014-08-15-Daqo-New-Energy-Corp-Announces-Second-Quarter-2014-Results

 

However cautious comments on China demand:

 

"Consider in the first half of 2014 the total newly added installation is around 3.3GW, we strongly believe the market will soon pick up in the fourth quarter due to rising installation especially in China."

 

Ok...  so how bout Q3 if I may ask?

 

They are forecasting a slight pick up in Q3 ... at least from their poly and wafer shipments. Given the closure of the China loophole ... DQ may be in a big rise.

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Daqo New Energy Corp. Announces Pricing of Registered Follow-on Offering of American Depositary Shares: http://finance.yahoo.com/news/daqo-energy-corp-announces-pricing-141100806.html

Crap. They issue on the low at $19.50 with a 52-week high of $56.98 and 52-week low of $17.70. Should have waited a few days to get back in (but then I would not have followed the so far otherwise successful diversify and rebalance rules). Might be a good chance to load up if they take it down.

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We are also considering further capacity expansion at our Xinjiang facilities in the medium term, the Phase 3 expansion.
Subject to market and industry conditions, we expect our Phase 3 expansion, which may be conducted in two stages, to expand
total polysilicon production capacity to 25,000 MT by early 2017.

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We are in the process of relocating certain machinery and equipment from our facilities in Chongqing to our Xinjiang
facilities, which has reduced the capital expenditure requirements for our Phase 2 expansion. However, we have decided to utilize
approximately 40% of our current machinery and equipment previously planned to be used for our Phase 2 expansion, as
measured by its book value as of December 31, 2014, as certain machinery and equipment can be more efficiently and costeffectively
used in our future expansions. As a result, we plan to acquire additional new machinery and equipment for our Phase 2
expansion. Our estimate of the total investment amount for our Phase 2 and future expansions has not changed, and subsequently,
the total cash requirement for Phase 2 is now expected to be approximately $150 million.

 

The remaining Chongqing machinery and equipment that we
do not utilize in our Phase 2 expansion will be used in the Phase 3 expansion, which will reduce our capital expenditure
requirements.

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Might be a good chance to load up if they take it down.

 

Load up (at limit price) is difficult to near impossible on this stock without effecting PPS bid/ask greatly. Any market order will effect fill prices by at least $1. This is normally for this stock, but today me be different. 

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Load up (at limit price) is difficult to near impossible on this stock without effecting PPS bid/ask greatly. Any market order will effect fill prices by at least $1. This is normally for this stock, but today me be different. 

 

Yes I hate these high spread illiquid stocks. You have to use tricks to trade them efficiently, wait for it (ask to come down) ..., wait for it..., chock MM with a bid high above ask.

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Yes I hate these high spread illiquid stocks. You have to use tricks to trade them efficiently, wait for it (ask to come down) ..., wait for it..., chock MM with a bid high above ask.

Yes exactly like that.

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DQ did move good today and CSUN did really well as well. PG did you get what you wanted form it or still holding?

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PG did you get what you wanted form it or still holding?

 

I had my trading hat off (regretfully) for over a year until last December. Then I did a lot of re-allocation the past three months. I'm happy with current positioning and will hold all three. Patiently awaiting JKS' ER on the 2nd since they did not release any PRs and its my (after re-balancing) largest position now. As far as DQ, I have no idea if last March's high will be reached again, but if it will get close enough then it should outperform CSIQ and JKS based on my entry point into DQ and price points that I had to give up CSIQ and JKS at to get into DQ. Previously on DQ (its practically not discussed) Explo provided some insides into their GMs hence I'm content (even if a bit uncomfortably since its more like a gamble for me). So I have two which I'm very comfortable with and one which is a gamble a bit.   

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Results
 
http://www.prnewswire.com/news-releases/daqo-new-energy-announces-unaudited-fourth-quarter-and-fiscal-year-2014-results-300063989.html
 
Fourth Quarter 2014 Financial and Operating Highlights

  • Record-high quarterly polysilicon production volume of 1,791 MT in Q4 2014, up from 1,748 MT in Q3 2014
  • Polysilicon shipments of 1,537 MT in Q4 2014, compared to 1,598 MT in Q3 2014
  • Polysilicon production cost of $13.23/kg in Q4 2014, compared to $13.05/kg in Q3 2014; cash cost of $10.88/kg in Q4 2014, compared to $10.72/kg in Q3 2014
  • Wafer shipments of 17.8 million pieces in Q4 2014, compared to 18.5 million pieces in Q3 2014
  • Non-GAAP gross margin(1) of 32.1% in Q4 2014, up from 31.7% in Q3 2014
  • EBITDA(non-GAAP)(1)of $14.7 million in Q4 2014, compared to $16.4 million in Q3 2014
  • Net income attributable to Daqo shareholders of $3.6 million in Q4 2014, compared to $5.9 million in Q3 2014

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