Worldwide Energy and Manufacturing (fka WEMU)

[abh3vt]

I don't think you can back the tax out completely. The company did say that they expected to pay tax going forward, and the standard rate in China is 25%. If you use that rate in the quarter, and then subtract the minority int expense, I get a fd eps for the quarter of 0.04.

I also don't think their 2.05/watt selling price that they used in their guidance is credible, given the continued pressure that all solar module makers have been under. Very little new orders have been announced, and it also wouldn't surprise me if they see more push-outs this year. The company's reluctance to discuss any backlog numbers makes me suspicious. They were willing to trumpet their numbers when orders were coming in at a faster pace.

Bottom line, I think the industry fundamentals will only begin to turn around once some of the capacity goes away....demand may appear to be strong, but the glut in modules is worse. I think WEMU will continue to struggle against this trend.