Meyer Burger - following business pivot and stock split
Updated
Meyer Burgers pivots from solar cell eqiupment supplier to maker of solar cell modules. Next gen photovoltaic breakthrough kept close to the chest.
Tech lead
Merger Burgers has a portfolio of leading tech setting the standard for equipment used by many of the world’s PV manufacturers. Meyer Burger is also credited with introducing efficiency-boosting PERC architecture into the solar market.
Arbitrages of perception, liquidity and possibly price
Perception and pivot: Stock split and full go ahead from shareholders, 81,4% approving capital increase and tranfsormation to a manufacturer of solar cells to solar modules.
Liquidity: In an obviously good trend where states are willing to finance next gen solar. A clear strategic commitment of German and European politics. Tax breaks will probably continue to be generous. The trend is becoming stronger all over the world. Solar together with new tech for storing electricity as well as hydrogen and hydrogen transformation will be part of the solution. There won't be one technological winner. We need many. Batteries are quite problematic for many reasons, minerals being one.
Price: stock split might provide a momentum - recent data seem to suggest this in my opinion - peoples perception of price history is not completely rational. There is a strong tendency to misread the graphs here for non instituional investors/retail investors.
Sources
Shareholder decision
meyerburger.com/en/company/media-center/news/shareholders-of-meyer-burger-technology-ltd-approve-capital-increase-1/
Comeback for german solar cell production
meyerburger.com/en/company/media-center/comeback-for-german-solar-cell-production/
Mission/pivot
meyerburger.com/en/company/media-center/news/meyer-burger-technology-ltd-aims-to-transform-itself-from-a-supplier-of-production-equipment-to-a-technologically-leading-manufacturer-of-solar-cells-and-modules-capital-increase-targeting-gross-proceeds-of-chf-165-million-planned/
PERC
meyerburger.com/en/technology-products/photovoltaics/perc/
Tech lead
Merger Burgers has a portfolio of leading tech setting the standard for equipment used by many of the world’s PV manufacturers. Meyer Burger is also credited with introducing efficiency-boosting PERC architecture into the solar market.
Arbitrages of perception, liquidity and possibly price
Perception and pivot: Stock split and full go ahead from shareholders, 81,4% approving capital increase and tranfsormation to a manufacturer of solar cells to solar modules.
Liquidity: In an obviously good trend where states are willing to finance next gen solar. A clear strategic commitment of German and European politics. Tax breaks will probably continue to be generous. The trend is becoming stronger all over the world. Solar together with new tech for storing electricity as well as hydrogen and hydrogen transformation will be part of the solution. There won't be one technological winner. We need many. Batteries are quite problematic for many reasons, minerals being one.
Price: stock split might provide a momentum - recent data seem to suggest this in my opinion - peoples perception of price history is not completely rational. There is a strong tendency to misread the graphs here for non instituional investors/retail investors.
Sources
Shareholder decision
meyerburger.com/en/company/media-center/news/shareholders-of-meyer-burger-technology-ltd-approve-capital-increase-1/
Comeback for german solar cell production
meyerburger.com/en/company/media-center/comeback-for-german-solar-cell-production/
Mission/pivot
meyerburger.com/en/company/media-center/news/meyer-burger-technology-ltd-aims-to-transform-itself-from-a-supplier-of-production-equipment-to-a-technologically-leading-manufacturer-of-solar-cells-and-modules-capital-increase-targeting-gross-proceeds-of-chf-165-million-planned/
PERC
meyerburger.com/en/technology-products/photovoltaics/perc/
Trade active
A report in line with expectations and even though loosing more money and halfving revenues the guidance was quite positive in the end. The context we are working with here is a company
- making a pivot
- giving guidance for next year expecting that they will be able to achieve an operating profit with next years estimated production volume.
This is very positive for share holders, assuming the company can deliver on this guidance, the price of the stock should follow and continue to climb in the near to mid future.
From earnings report:
- - - -
Aug 13 (Reuters) - Meyer Burger Technology AG MBTN :
* H1 EBITDA OF CHF -27.5 MILLION (H1 2019: CHF 14.5 MILLION) AND NET PROFIT OF CHF -38.6 MILLION (H1 2019: CHF 1.8 MILLION)
* H1 NET REVENUES OF CHF 51.0 MILLION (H1 2019 ADJUSTED: CHF 110.2 MILLION)
* H1 RESULT AT EBIT LEVEL WAS CHF -32.3 MILLION (CHF 6.6 MILLION IN H1 2019).
* NET FINANCIAL RESULT IN FIRST HALF-YEAR OF 2020 AMOUNTED TO CHF -4.5 MILLION (H1 2019: CHF -3.9 MILLION).
* GROUP RESULT OF CHF -38.6 IN FIRST HALF-YEAR OF 2020 (H1 2019: CHF 1.8 MILLION).
* CAPACITIES FOR START OF PRODUCTION IN FIRST HALF OF 2021 WILL BE 400 MW PER YEAR IN SOLAR CELL PRODUCTION AND 400 MW IN MODULE PRODUCTION
* EXPECTS THAT REALIGNED MEYER BURGER GROUP WILL ALREADY BE ABLE TO ACHIEVE AN OPERATING PROFIT WITH THIS PRODUCTION VOLUME
- - - -
PS Caution/risk:
Solar not being the best of businesses to make money.
DS
Trade active
This investment is up around 70% since my call on july 30 in less than a month. When I called the trade on july 30 the price was between 0.1220 and 0.1230 and today it's over 0.2090. Pretty good ratio :) I will hold and trade this idea long, might sell on some bottoms.
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