Solar Edge also reported earnings today, however, their stock is up 15%. The only difference I can find between Solar Edge and Sunpower is that Solar Edge is based in Israel, while Sunpower is based in California. First Solar is also based in the United States, so I'm wondering if they will suffer from this news as well.
All 3 companies had their prices spike 6-10% on January 22nd when the tariff was announced, which ill be honest, doesn't make sense for SEDG who is based overseas.
Any thoughts?
- apparently FSLR is exempt from the tariff so this is probably good for them
from First Solar's 10-k:
- "Application of U.S. trade laws, or trade laws of other countries, may also impact, either directly or indirectly, our operating results. For example, in April 2017, a U.S.-based manufacturer of solar cells filed a petition under Sections 201 and 202 of the Trade Act of 1974 for global safeguard relief with the U.S. International Trade Commission (the “USITC”). Such petition requested, among other things, the imposition of certain tariffs on crystalline silicon solar cells imported into the United States and the establishment of a minimum price per watt on imported crystalline silicon solar modules. In September 2017, the USITC determined such products are being imported into the United States in such increased quantities as to be a substantial cause of serious injury to the relevant domestic industry. The USITC has proceeded to the remedy phase of its investigation, following which it may recommend remedies, such as tariffs, quotas, or trade adjustment assistance, to the U.S. presidential administration. In October 2017, we submitted a letter in a non-party capacity to provide the USITC with information to inform its remedy recommendation. Thin-film solar cell products, such as our CdTe technology, are expressly excluded from the petition. However, it is unknown how the resolution of the petition, the scope or form of any resulting remedial action taken by the U.S. presidential administration, or any other U.S. or global trade remedies or other trade barriers, may directly or indirectly affect U.S. or global markets for solar energy and First Solar’s business, financial condition, and results of operations."
regarding their operations in Malaysia
- "The statutory federal corporate income tax rate in the United States is 35.0%, while the tax rates in Australia, India, and Malaysia are 30.0%, 34.6%, and 24.0%, respectively. In Malaysia, we have been granted a long-term tax holiday, scheduled to expire in 2027, pursuant to which substantially all of our income earned in Malaysia is exempt from income tax."
*Full disclosure: I have puts :P
Submitted February 14, 2018 at 09:11PM by Fan_Boyy http://ift.tt/2GgBjJj
