PVCS – interesting special situation

Monday, Dec 24 2012 by
3

OK, so I’m a bit late to the party on this one, but PVCS looks like it presents an interesting special situation. Let’s throw it out there, and see how it does 6 months down the line.

PV Crystalox Solar (LON:PVCS) is in the alternative energy sector. As you know, I am dead set against this sector. So is everybody else. Now read on.

What do PVCS do?

The principal activity of the Company and its subsidiaries is engaged in the production and supply of multicrystalline silicon wafers to the worldwide photovoltaic market.

… and so on. Basically, the idea here is that governments provided lots of subsidies so that solar energy could be developed. Money and investment poured into the sector. Then the governments pulled the plug on funding, and competition from China built up.

Needless to say, the whole sector got turned upside down.

So what’s the investment case here?

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Well, the investment case here is that PVCS has a NCAV of £79.3m – that’s total current assets less all liabilities. Its market cap is £45.9m. Moreover, on 17 Dec 2012, PVCS announced a “radical” restructuring, in which it will eliminate employees and production in areas where there are “vast” over-capacities 9which is presumably most areas). What’s more: “The Group expects to return cash to shareholders during Q2 2013 in a manner that will provide shareholders with an element of choice as to the form in which they receive the cash,”

Not sure what they mean by “choice”, though. Surely a cheque is a cheque?

Interesting, n’est pas?

11p

I hold no position


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PV Crystalox Solar plc is a United Kingdom-based holding company. The Company is a producer of multicrystalline silicon wafers for use in solar electricity generation systems to the solar cell manufacturers from its wafering facilities in Germany and Japan. The Company’s ingot production facilities are based in Oxfordshire, United Kingdom, where it has four production plants, two of which are in operation. The Company’s subsidiaries include PV Crystalox Solar Silicon GMBH, Erfurt, Germany; Crystalox Limited, Abingdon, United Kingdom; and PV Crystalox Solar KK, Tokyo, Japan. The Company has its market in China, Europe, Japan and United States of America. more »

Share Price (Full)
9.68p
Change
0.0  0.0%
P/E (fwd)
n/a
Mkt Cap (£m)
15.5



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About Mark Carter

Mark Carter

I am a private investor living in Scotland. I am a computer programmer by trade.

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