Friday, June 6, 2008

Trina Solar: Climateer Hangs his Head, Saved by Low Price to Earnings (TSL)

We were completely unaware the one-time currency adjustment was coming. Any half-assed analyst should not have to use the term "completely unaware".

Even worse, our model included a half mil. currency gain (distinct from the adjustment) that failed to materialize. Combined, that's a 17 cents per share miss.
Granted, no other analyst called for the currency change but that is small comfort. And no excuse.

Looking ahead, our instanalysis has second quarter earnings of 80 cents per ADS vs. consensus $0.73 and full year earnings of $3.90 vs. consensus $3.14.
The saving grace is that at $45.62 -$4.01, the stock is trading at 14.5 times this year's average earnings estimate.

And comfortably ahead of the April 11 close of $38.oo when we started making noise about this one.
As the old-timers used to say, "Well bought is half-sold". Onward and upward.
Trina, you might want to give the street a heads up if you have these non-op line items coming. Just a suggestion from someone who's impressed with the ops side of your biz.