Currenly Rowsley is forming a support at 0.25 to 0.26. I believe there are more upside for this counter for the solar energy. TA wise. a uptrend will be coming soon.
Rowsley gives more details on RTO deal
Rowsley has come out to address concerns by some investors, over whether its US$2.7 billion acquisition, Perfect Field, will be able to deliver its annual profit guarantee.
Rowsley's reverse-takeover deal with Chinese-based solar energy products maker Perfect Field was announced last week.
Almost immediately, skeptics questioned how Perfect Field will meet profit guarantees.
Meeting the media and analysts today, Rowsley said Perfect Field's production plant is not a greenfield project that needs time to build from scratch.
Rowsley CEO Koh Kim Huat said infact, the company owned by Chinese scientist Dr Ma Xin already has stretches of land in Jilin province, some production facilities and government concessions to start producing solar energy products.
All that's needed is for equipment to be fitted out at the facilities.
Mr Koh said Perfect Field targets to produce solar panels with capacity of up to 70 megawatts by July.
This will be ramped up to 100 megawatts by October.
An industry observer told 938LIVE this is enough to meet the power needs of a small town.
Rowsley's Mr Koh said Perfect Field needs to meet the October production target for the reverse takeover deal to go through.
Thereafter, Perfect Field will step up production until it reaches 500 megawatts capacity by 2009.
Given that the Chinese company meets these production targets, Mr Koh was asked, are there takers for the solar products?
"Solar energy as part of the total energy is so small, everything that he could supply is all taken. So it's not a situation where it is a congested market, it's you against me. Among the solar energy guys, nobody is competing against each other. Whatever you produce is taken."
Brokerage CLSA has estimated that sales in the solar power sector will soar to US$90 billion in 2010, from 13 billion last year.
China has also passed a renewable energy law that among other things, offers financial incentives to foster renewable energy development.
Rowsley's Mr Koh said Perfect Field has signed MOUs with mostly government agencies to supply panels for solar farms and even a hydro plant within the Jilin Province.
He also clarified that Perfect Field does indeed have a contract to supply solar energy systems to the Nest Stadium in Beijing.
Mr Koh said the contract is to supply solar panels with capacity of one megawatt or 1,000 kilowatts,
while another company, called Suntech Power will supply a 130 kilowatt solar energy system to the stadium.
Asked how Perfect Field will meet the lofty profit guarantee of S$300 million for each of the next three financial years, Mr Koh let on that the current selling price for installed solar energy is about US$5 million per megawatt.
Finally he said there are no losers in this deal, stressing that if the production and profit targets are not met, Dr Ma's shares in Rowsley will be canceled.
He adds Rowsley shareholders would have already benefitted from the recent run-up in Rowsley's share price.
Taken from http://www.938live.sg/ListDetail.aspx?Editorial_ID=19117&SubCategoryID=5&Diff=0&Catgrp=Business&Start_Date=20070509