> > > Honolulu Star-Bulletin: Hoku adjusts solar contract
The Kapolei-based alternative-energy technology developer is exercising the option under its contract with Solar-Fabrik AG after the German company did not meet a September deadline to provide additional financing for Hoku's planned polysilicon plant in Pocatello, Idaho.
Hoku also said yesterday it has received a six-week extension from Japan-based Sanyo Electric Co. Ltd. to complete financing for the plant. Under the contract amendment, either company may end the supply agreement if Hoku has not secured financing by Feb. 15.
Now, frankly, as someone who has no shares of HOKU, this news is a bit frightening. What if Solar-Fabrik AG doesn't come through? What if the financing for the plant isn't on time? Does $1.5 billion in contracts go poof? Always a lot of ifs with a promising power hitter like Hoku. For traders, HOKU has been a dream come true. I still like the stock as a speculative play, but only when it pulls back and gets cheap. As 2009 gets closer, this will continue to ride a wild roller coaster. The 50-day SMA is 9.40, and at 14.19, HOKU is back near all-time highs. Sustainable?
I'm still a big fan. Just not invested right now. HOKU is a completely news-driven stock, and when there's no news, it sells off and goes ker-plunk. I think this Co wins in the long run, which is why I will add a few shares when it gets cheap only. No news and lots of near-term uncertainty is what bargain hunters want.
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