DayStar Technologies, Inc. (Nasdaq: DSTI) skyrockets on company news
Posted on: July 22nd, 2010Written by:
DayStar Technologies, Inc. (Nasdaq: DSTI) skyrocketed in morning trading Thursday, up more than 75 percent from Wednesday’s closing price. The solar products maker announced this week that it is pursuing a strategy for offshore manufacturing of its CIGS thin-film deposition technology solar modules.
The company is exploring various options to pursue this strategy, and has “begun discussions with several potential partners,” and should the discussions prove effective, “could include joint ventures, licensing agreements, contract manufacturing agreements,” or even a reverse merger with or an acquisition of DayStar, according to CEO Magnus Ryde.
“We are confident in our core proprietary CIGS technology and believe that completing a transaction with a strategic partner and manufacturing our CIGS modules offshore would provide the best opportunity to bring our product to market and to manufacture the product in the most cost effective manner,” Ryde said.
For the first quarter, DayStar reported a net loss of $6.1 million or $1.61 per share, compared with a net loss of $7.7 million or $2.06 per share in the first quarter of 2009.
The average shares outstanding and loss per share for the quarter ended March 31, 2010 and 2009 reflect the 1-for-9 reverse stock split implemented by DayStar on May 11, 2010. DayStar’s common stock began trading on the NASDAQ Capital Market on a split adjusted basis on March 12, 2010.
Despite overall market conditions, solar stocks have remained strong, with companies like STR Holdings (Nasdaq: STRI), Solarfun (Nasdaq: SOLF), Trina Solar (NYSE: TSL), JA Solar (Nasdaq: JASO), Renesola (NYSE: SOL), and GT Solar (Nasdaq: SOLR) performing well. A look at the Solar Stocks Index shows that there is certainly no shortage of domestic components. However, data from the Solar Energy Industries Association suggests that solar power accounts for less than 1% of U.S. energy usage.
