Here’s an positive article on Trina (TSL), by Jack Yetiv posting on Seeking Alpha. As I write, the stock’s down about 4 points. – Ilene 
Further Thoughts on Trina Solar and the Solar Space
Excerpt: "This past Friday, I wrote an article updating my thoughts on the leading companies in the solar space. Since I submitted the article just an hour after the Trina Solar (TSL) conference call ended, I was unable to comment extensively on information given during the TSL conference call. I am now able to give further thoughts on TSL—which will also help us to understand key facts pertaining to all companies in the solar space.
I found the TSL conference call very interesting—not only because of its relevance to Trina’s prospects, but because I believe the conference calls reinforced many of the themes and arguments I have presented in various articles on these virtual pages over the past several months (I should note that Trader Mark also wrote an article on Trina over the weekend, an article you should also read if interested in TSL).
Let me summarize what I found so interesting in the TSL conference call, and discuss how this information is useful even to investors who do not hold any TSL:
1) TSL re-affirmed 2008 revenues guidance to between $770 million and $808 million. I believe their sales will be at the upper end of that range (but I do not expect sales to exceed $810 million) because their 2008 production is almost fully (95%) booked, and because demand in Europe not only remains very strong but may well be increasing as new markets open up (more on that below). Keep in mind that oil’s return to the upper $130’s in the past three trading days will only serve to focus greater attention on alternative energy going forward, and should help boost the solar stocks as well as their sales prospects.
2) More importantly, TSL’s operating margin guidance was also re-affirmed for this year—at 15-17%. Although many did not believe it when TSL guided to those levels in March of this year, the fact that TSL achieved operating margin of 16.7% in Q1 would suggest that 15-17% for all of 2008 is a very reasonable range. Taking the midpoint on sales and margins guidance ($789 million times 16%) yields operating income for this year of $126 million. Annualizing the same interest cost and exchange losses as just reported equals a currency exchange-and-interest expense of about $24 million and taxes at 4.92% (announced on the call) adds up to $6 million, yielding earnings in 2008 of $96 million. This translates to$3.79/sh, yielding a PE of under 11 against TSL’s price in the $41 range as I write this."
Click here for full article.
