Lone analyst on a call

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email

Having listened to more quarterly conference calls from listed companies than I care to mention, two contrasting characteristics are worth mentioning. In the PV industry, players such as First Solar get star treatment. With so many analysts on the call, questions are limited to one and no follow-up. At times, even with that policy in place, not all analysts get a chance to pose a question. However, the reverse can also happen.

Though rare, I have experienced calls when a lone analyst is in attendance, asking a couple of questions and then the call ends sharply. These occurrences are a warning sign that the investor community would rather cover more attractive companies and unless attendance picks-up, normally on the back of improving financial positions of those listed companies then it’s a downward spiral from there.

I have even experienced firms that were in deep trouble, simply stop hosting quarterly conference calls either because it was obvious there was consistently a lone analyst on the call or that the hostility of disgruntled private investors would use the call to vent their frustrations on a management they had little confidence left in them.

Regrettably, there was a lone analyst on the Emcore call yesterday and the Q&A session was over in a blink of an eye. Not that Emcore had attracted a lot of attention from the investor community over the last few years but it would normally host 3-4 analysts, which were also from recognisable investment firms.

They would now seem to have all gone and probably because it is hard to justify coverage to potential customers that a perennial loss-making firm is an attractive bet.

There were however, some vaguely positive tones echoing from management in the call, regarding their CPV segment of their business.

The company noted that they had a current order backlog for 15MW of CPV system, at its China-based JV, Suncore. They also planned to complete two CPV solar power project in New Mexico and Arizona totalling 3MW this year, using CPV components manufactured by Suncore, which coupled to improved design and lower manufacturing costs is intended to regain lost competitiveness.

Management also noted that they would be expanding its project development team and hopefully start further projects to build sales.

Its space business, typically a bumpy business to be in has had some recent contract successes but the backlog has now declines again and is expected to decline further in the March quarter.

According to the company its total addressable market for space applications was reportedly US$400 million, of which US$250 million was in the commercial space segment and and US$150 million came from the defense segment. Emcore management noted that the defence segment was now a new addressable market for Emcore, having recently received preliminary facility security clearance as a trusted supplier to the U.S.Government.

Part of the problem for Emcore is that the two CPV projects they mentioned in the call were announced last year, and with systems being supplied from the China JV later this year (factory being built at the moment), the lack momentum remains an issue.

Ever the optimist, Emcore’s President and Chief Executive Officer, Hong Hou finished his prepared statement to the lone analyst by saying, “We will continue with the same rigor for cost control and cost reduction. With these efforts, we are setting a strong foundation for our future.”

9 December 2021
The Smart Energy Council is hosting Australia’s second Virtual Smart Energy Conference and Exhibition on Thursday, 9 December 2021. This event will show that the industry powers on despite COVID-19 and we are standing together undeterred in spirit. Bringing our global community together using the latest technology.
13 January 2022
Intersolar North America and Energy Storage North America “Come Together” for the first time in Long Beach, CA—connecting installers, developers, utilities, technology providers, policy makers, and key stakeholders from around the world to advance the clean energy future. With best-in-class conference programming, integrated exhibits and pavilions, and the live Solar Games installer competition, #isnaesna21 will showcase the industry trends, innovative solutions, and emerging talent transforming the solar, energy storage, and e-mobility markets. Register today to redeem our exclusive offer for PV Tech readers—free expo hall or 20% off full conference pass.
1 February 2022
As Solar Finance & Investment enters its ninth year, we sit on the cusp of a new power market with solar at its heart. The 2022 edition of the event will build on our years of expertise and relationships to bring investors and lenders together with top developers. Connect with leaders in the field and use exclusive insights to drive investment and development decisions for the future. Meet new and existing project partners at the largest gathering of European solar investors and lenders.
23 February 2022
Held annually since 2016, the Energy Storage Summit Europe is the place to be for senior stakeholders in the European storage industry. Designed to accelerate deployment of storage, we examine evolving chemistries, business models, project design, revenue stacks and use cases for storage. The 2022 edition will include exclusive content around longer duration solutions, energy strategies for wide-scale deployment of EVs and "EnTech", the event which sits at the intersection of digitisation, decentralisation and decarbonation of the power system. Come to meet TSOs, DSOs, Utilities, Developers, Investors and Lenders and leave with new contacts, partners and a wealth of information.
7 March 2022
Take your chance to join the most powerful platform in the MENA region. Middle East Energy (MEE), Intersolar, and ees, the leading energy exhibitions are joining hands to co-deliver an outstanding renewables and energy storage event at Middle East Energy 2021. Renewables and energy storage at MEE is the largest gathering of solar and renewable energy industry professionals in the Middle East & Africa, offering the most effective trade focused platform to international manufacturers and distributors looking to meet regional buyers.
23 March 2022
When it comes to storage, the US market exceeded a gigawatt of advanced energy storage installations (weighted towards lithium ion) at 1.46 GW, more than the previous six years in total! An exponential growth rate could see the market hit 7.5 GW p.a. by 2025. The summit will provide a wealth of content around this vital piece in the US power puzzle, with sessions dedicated to explore how companies are making money from batteries, the latest chemistries and their applications as they apply to different use-cases. We ask how investors can match ESG criteria to batteries and we will bring case studies of successful deployment and project execution onto the stage to examine how you can ensure your own projects are successful.

Read Next

December 7, 2021
Solar developer ib vogt has signed a €40 million (US$45 million) syndicated loan agreement with its long-standing German bank partner Commerzbank AG to support its international growth strategy
December 7, 2021
The US and China will account for a combined 57% of total forecasted solar capacity additions through 2030, with the countries adding 151.3GW and 436.9GW of solar capacity, respectively. Both countries have risks to this development, however, with the US needing to overcome trade and tariff problems, while China needs to ensure the reliability of PV production
December 7, 2021
Tesla is being investigated by the US Securities and Exchange Commission (SEC) following a claim that the company did not appropriately inform its shareholders and the public about potential fire risks from its solar systems, according to a report by Reuters.
December 7, 2021
JinkoSolar is forecasting that more than 25% of its module shipments next year will be attributable to its n-type TOPCon module range.
PV Tech Premium
December 7, 2021
PV Tech Premium speaks to Dany Qian, vice president at JinkoSolar, to get the inside story about the ‘Solar Module Super League’ member’s 16GW n-type expansion and plans to take the lead in TOPCon.
PV Tech Premium
December 6, 2021
PV Tech Premium breaks down the key schemes and incentives that exist for companies that want to invest in India's growing solar market

Subscribe to Newsletter

Upcoming Events

Solar Media Events
February 1, 2022
London, UK
Solar Media Events
February 23, 2022
London, UK
Solar Media Events
March 23, 2022
Austin, Texas, USA
Solar Media Events
March 29, 2022
Lisbon, Portugal