NEW YORK, April 4 (Reuters) - Energy Conversion Devices Inc shares will erode further, after losing 64 percent in the last 11 months, as rivals make products that are more efficient and cost less, the newspaper Barron's said in its April 5 edition.
The newspaper said shares of the Rochester Hills, Minnesota-based company superficially look cheap at 0.5 times book value.
It also said Energy Conversion can continue its operations 'for a while,' given that it held more than $200 million of cash and investments at year end, and is burning about $30 million of cash a quarter.
The newspaper said, though, that silicon-wafer-based solar cells from rivals including Suntech Power Holdings Co and Trina Solar Ltd are more efficient and cheaper than Energy Conversion's 'thin film' products.
It also said nearly all of Energy Conversion's book value comes from 'property, plant and equipment,' and questioned 'the value of a factory that makes an uncompetitive technology.'
The newspaper projected that Energy Conversion's share value 'will continue to erode.'
Energy Conversion did not immediately return a call on Sunday seeking comment.
In the six months ended Dec. 31, 2009, Energy Conversion posted a $50.92 million net loss, or $1.20 per share, compared with a year-earlier $24.86 million profit, a regulatory filing shows. Revenue fell 52 percent to $95.86 million.
Shares of Energy Conversion closed Thursday at $7.68 on the Nasdaq. The stock market was closed for Good Friday.
(Reporting by Jonathan Stempel; Editing by Steve Orlofsky) Keywords: ENERGYCONVERSION/BARRONS (jon.stempel@thomsonreuters.com +1 646 223 6317; Reuters Messaging: jon.stempel.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The newspaper said shares of the Rochester Hills, Minnesota-based company superficially look cheap at 0.5 times book value.
It also said Energy Conversion can continue its operations 'for a while,' given that it held more than $200 million of cash and investments at year end, and is burning about $30 million of cash a quarter.
The newspaper said, though, that silicon-wafer-based solar cells from rivals including Suntech Power Holdings Co and Trina Solar Ltd are more efficient and cheaper than Energy Conversion's 'thin film' products.
It also said nearly all of Energy Conversion's book value comes from 'property, plant and equipment,' and questioned 'the value of a factory that makes an uncompetitive technology.'
The newspaper projected that Energy Conversion's share value 'will continue to erode.'
Energy Conversion did not immediately return a call on Sunday seeking comment.
In the six months ended Dec. 31, 2009, Energy Conversion posted a $50.92 million net loss, or $1.20 per share, compared with a year-earlier $24.86 million profit, a regulatory filing shows. Revenue fell 52 percent to $95.86 million.
Shares of Energy Conversion closed Thursday at $7.68 on the Nasdaq. The stock market was closed for Good Friday.
(Reporting by Jonathan Stempel; Editing by Steve Orlofsky) Keywords: ENERGYCONVERSION/BARRONS (jon.stempel@thomsonreuters.com +1 646 223 6317; Reuters Messaging: jon.stempel.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.