Tuesday, 28 September 2010

And the sun shines...

Running a firm followed by 36 analysts half of whom rate you a sell and only 4 (did they not get the memo?) a buy is plenty motivation for a new chief to serve up some crow.

Your balance sheet is shite; revenue still suffering a hangover from a shift a public policy; and johnny foreigner is undercutting you by 20% thanks to questionable (and dirt cheap) state loans. In short, you live and breath the turnaround strategy.

Fortunately, forward demand is strong. Your prospects are not terminal. You issue shares in a well-flagged recapitalisation move. Cue 6% share price decline. Or make that "Q-Cells a 6% price decline".

One does not have to believe the market is wrong about Q-Cells. One must only agree it ought to have similar misgivings of Renewable Energy Corporation currently storming ahead in Oslo.

If you can deal with the fx (my portfolio tracker cannot) sell REC @20.15 krone and buy QCE@4.78 euros.


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