“Stealth Solar: Silicon Valley’s Secret Investment.”

Streetsifter strikes again — he sent in this solution for an email that just started circulating, and he sent it in before I had even gotten around to reading the email. He even wrote it up nicely, so most of what follows is just a minor edit of his words (I agree he’s clearly got this one pegged, for what that’s worth):

If you have the spare $1,750, you can subscribe to Sara Nunnally’s Material Profits Wildcatter from Taipan New Services and receive access to her detailed report on the $2 “Stealth Solar” manufacturer of photovoltaic cells whose stock, according to Ms. Nunnally, “could gain 503.2% or more this year.” (The “.2” is a nice touch, don’t you think?)

The teaser includes Sara Nunnally’s statement that, “I can’t reveal the name of the company for fear of running up the share price” and also lists a qualification for subscribers, “You must be able to keep a secret. No blabber mouths. Sharing Material Profits Wildcatter stock picks with people who are not within our private group is strictly prohibited.” What makes that prohibition particularly amusing in the case of this specific stock is that Ms. Nunnally, herself, already “blabbed” and NAMED THE STOCK in a free 13 April 2007 promotional announcement that is still posted here on the Taipan website.

The stock is Solar EnerTech Corp. (OTCBB: SOEN), and even without the benefit of the April “blab”, the updated teaser ad is loaded with so many specific clues that the stock could be tracked down by the Gumshoe’s proverbial blind bloodhound with one nostril.

Confirmation of “new orders from Spain, Malaysia, Turkey and South Africa” is at http://www.solarenertech.com/news/release.asp?numb=227

Also, the teaser ad describes ” $7.5 million in sales from a major energy company in India. Another $8 million in revenue is in the pipeline from an agreement with a Shanghai company. And a $9.2 million sale has been made to a different company in Shanghai”. The news release area of Solar EnerTech’s website has matching information at:

http://www.solarenertech.com/news/release.asp?numb=223
http://www.solarenertech.com/news/release.asp?numb=221
http://www.solarenertech.com/news/release.asp?numb=218

And if those direct hits aren’t enough, a verbatim match of the teaser ads description of a Shanghai plant upgrade producing ” a bright, blue-green veneer across the immense surface area.” can be found here.

The ad describes Solar EnerTech as being at a discount to other solar energy producers, at a minimum an 80% discount to previous Gumshoe-solved stocks SunPower (SPWR) and Trina Solar (TSL). Whether or not that is a credible statement to justify your investing dollar is, as usual, your decision. But saving you the $1,750 subscription fee for the solution to Sara Nunnally’s teaser ad is the pleasure of the Stock Gumshoe, with the help of Irregulars like “Streetsifter”, who pretty much wrote this post.

OK, so that’s what Streetsifter says … and I couldn’t have said it better. I’ve never heard of this tiny company, and the shares don’t seem to have spiked too much on this recommendation yet, but they are up dramatically on the year.

As always, to be a killjoy I’d urge caution with microcap names in hot industries — was the company built to appeal to small time investors, or do they really have the possibility of a strong future going up against SunTech, SunPower, and the like? Suntech has recently gotten clobbered for significantly lower margins because of problems with polysilicon supply, so how does a tiny upstart like this compete in the polysilicon markets? Or do they have to? Just a couple questions to ask yourself.

A couple notes about this one, just for fun: According to Yahoo Finance, their price/sales ratio is 35,126. Yes, that’s a comma in the middle. For my international readers, it’s 35.126 — the Gumshoe even provides on the fly translation, what a guy!

So they’re not exactly booming in the sales department yet, though they do appear to have some distribution deals. They have 25MW of “capacity” and are planning to double that by the end of the year, and they are also “planning” to have their R&D partnership with Shanghai University help them develop more efficient cells. More power to them, but the reason this is a sub-$2 stock is that a lot of this is “planning” so far … though they are manufacturing and selling cells to some degree, they’ve added a second shift in the factory and made a recent shipment that was their first to Africa. I have no idea how much they need to produce to become profitable, or what their sales growth looks like, it looks like this is indeed extremely early in the life of Solar Enertech as a going concern.

And it’s probably true, as S.R. Nunnaly says, that you need to get in before they break out and/or become leading businesses if you want home run returns. Of course, the home run hitters strike out a lot, too. There are a lot of small and new solar companies out there right now, so if you have a way to differentiate them and figure out which ones are going to be winners I’m sure we’d all like to hear it.

Thanks again to another generous reader for sharing his solution with the Gumshoe and the world.


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12 Comments on "“Stealth Solar: Silicon Valley’s Secret Investment.”"

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Louis
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Louis
July 2, 2007 3:35 pm
Here’s another one I got on solar techology. OCTL – it is a spray that goes on Windows – maintianing transparancy and it creates electricity without any short-outs. All kinds of patents. Copy of article. Thoughts ? Octillion Achieves Breakthrough in Development of Transparent Windows Capable of Generating Electricity9:15a ET June 4, 2007 (Business Wire) Octillion Corp. (Pink Sheets:OCTL) today announced that in early models of Octillion’s transparent photovoltaic ‘NanoPower Windows,’ scientists have successfully engineered and assembled a mechanically stable, see-through developmental prototype, which achieves optically active down-conversion and displays good electrical properties with no electrical shorts. “Our ability to… Read more »
Louis
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0
Louis
July 2, 2007 3:36 pm
Here’s another one I got on solar techology. OCTL – it is a spray that goes on Windows – maintianing transparancy and it creates electricity without any short-outs. All kinds of patents. Copy of article. Thoughts ? Octillion Achieves Breakthrough in Development of Transparent Windows Capable of Generating Electricity9:15a ET June 4, 2007 (Business Wire) Octillion Corp. (Pink Sheets:OCTL) today announced that in early models of Octillion’s transparent photovoltaic ‘NanoPower Windows,’ scientists have successfully engineered and assembled a mechanically stable, see-through developmental prototype, which achieves optically active down-conversion and displays good electrical properties with no electrical shorts. “Our ability to… Read more »
Louis
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Louis
July 2, 2007 3:37 pm
Here’s another one I got on solar techology. OCTL – it is a spray that goes on Windows – maintianing transparancy and it creates electricity without any short-outs. All kinds of patents. Copy of article. Thoughts ? Octillion Achieves Breakthrough in Development of Transparent Windows Capable of Generating Electricity9:15a ET June 4, 2007 (Business Wire) Octillion Corp. (Pink Sheets:OCTL) today announced that in early models of Octillion’s transparent photovoltaic ‘NanoPower Windows,’ scientists have successfully engineered and assembled a mechanically stable, see-through developmental prototype, which achieves optically active down-conversion and displays good electrical properties with no electrical shorts. “Our ability to… Read more »
Anonymous
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Anonymous
October 15, 2007 6:34 am

Soene is now soen again, you need to update your ticker in the spreadsheet.

Anonymous
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Anonymous
October 15, 2007 6:42 am

Have you got the teaser on this one yet? Is it the same company? Do this one, please:

The Biggest Solar Energy Project Ever

And this tiny California solar company, recently featured on NBC’s Today Show

http://www.angelnexus.com/o/web/2794

Anonymous
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Anonymous
October 30, 2007 10:40 pm
What’s this???? Right now, we’re offering you a way to join Jonathan’s Emerging Capital Report and lock in the lowest price we will ever offer. You must act before midnight November 5 to accept your $500. All the details follow… To your wealth, Joe SchrieferPublisher, Agora Financial The “Last Mile” RevolutionHas Begun… In July, an inside deal between two tech giants paved the way for an unknown company to break the barrier depriving 78 million Americans of high-speed Internet. Your first shot at high-flying technology profits since the 90s starts with this $4 stock… But you only have until Midnight… Read more »
Anonymous
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Anonymous
November 9, 2007 11:42 pm
The following is WGPWFOutstanding InvestmentsNov. 9, 2007 New “Slow Volcano” Energy Mandate Dear OI subscriber, A new California law could be creating one of the biggest energy opportunities since nuclear power came on the scene in the 50’s. The law will force California to produce 20% of its power from sources such as “slow volcano” power. Luckily we’ve known about this “slow volcano” power for sometime now. And our resident energy expert Byron King has come up with the best possible ways for you to cash in on this new power source. It’s all spelled out in the report below,… Read more »
MarWi
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MarWi
January 22, 2008 6:06 pm

What a pile of BS

professional
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July 19, 2008 9:41 pm

Hello. I think you are eactly thinking like Sukrat. I really loved the post.

max thweatt
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February 19, 2009 2:17 pm

i’m fairly new at investing and really enjoy your column.can you explain mlb”s in laymen terms.
thanks
max

Tasha
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Tasha
April 18, 2010 4:18 pm
SOEN – Solar Enertech Corp Solar EnerTech Corp. is a manufacturer of high quality photovoltaic (PV) solar energy cells and state-of-the-art solar applications. Their headquarters, in Menlo Park, California, is also the location where marketing, purchasing, and distribution activities take place. The company trades on the OTCBB and invests in photovoltaic cell research to develop higher efficiency solar cells. Solar EnerTech has constructed a 63,000-square-foot manufacturing and research facility in Shanghai�s Jinqiao Modern Science and Technology Park in China, where they manufacture PV solar cells and design advanced PV modules for roof panels, solar arrays, and modules incorporated directly into… Read more »
Gravity Switch
Admin
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February 19, 2009 2:26 pm

If you mean MLPs, they are Master Limited Partnerships — publicly traded partnerships that usually own capital-intensive, slowly depreciating assets (most often this means oil and gas pipelines), and they distribute their earnings, and sometimes their cash flow beyond earnings, to unitholders. There are other kinds of partnerships in all kinds of industries that own music royalties, asset management firms, ships, etc., but the most common ones are related to energy infrastructure. If you search MLP here on the site you’ll see many articles about them.

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