Tuesday, September 16, 2008

Evergreen Solar Extends Slide On Lehman-Related Fallout (ESLR)

A follow-up to this post.
From Tech Trader Daily:

Evergreen Solar (ESLR) shares this morning have extended yesterday’s sharp fall after the company late yesterday held a conference call with the Street on the fallout for the company from yesterday’s Chapter 11 following by Lehman Brothers.

In July, Evergreen issues $373.75 million of convertible notes. In connection with the deal, the company loaned 31 million shares to Lehman Brothers International (Europe) for hedging transactions. The company had originally concluded that, since the shares were to be repaid when the convert came due, the stock did not have to be included in EPS calculations. But now the company says it may have to include the additional shares in calculating EPS, diluting existing holders by about 19%, according to J.P. Morgan analyst Christopher Blansett. And the reason is obvious: the company may not ever get repaid for those shares....MORE

This is a buy at $4.10 down 10%.