GRSR - Girasolar

[englishman26]

This little dutch solar company finally filed it's financials and has more news coming. Getting lots of buying today.

[microhedge]

Checking them out, thanks Englishman

[jasno999]

This little dutch solar company finally filed it's financials and has more news coming. Getting lots of buying today.

I can't fidn any good info on this company. I see they are up 26% today but I would liek to knwo more about them before purchasing.

[englishman26]

Yeah it's hard because most of the business is in Holland, Spain and parts of Africa. There's a discussion on Ludlow capital about them.

This really should be in the pennies section on this site.

[chinaman711]

I have traded GRSR a few times and the only thing wrong with it is that its a pinkie. Check out pinksheets.com for quotes and info. Its a nice little trader when good news hits as it will move to .46 and then .60. Might even be a real good long term play as long as solar stays hot. Another little penny to watch is CXTIE was over $2 about two weeks ago and tanked due to CFO leaving the company and cxti not knowing how to address this. Was a great trader about 2 years ago and who knows could come back. Worth the risk imo.

[englishman26]

There's been talk of them uplisting for the last year but they couldn't get their act together and submit audited financials. The head of the US arm of the company was clearly useless but they swapped him out a couple of months ago and it seems things are finally moving. A lot of the news on the company is around on the internet but it's in Dutch! Anyway - I think it's a safe bet for a double/triple from here and maybe a long term hold although it's best to trade it because they have a history of being unreliable. Maybe things will be different going forward.

[englishman26]

GRSR vs. ESLR

FOR FISCAL YEAR ENDED DEC. 31, 2006

TOTAL REVENUES

ESLR = $102,252,000
GRSR = $55,886,830

GROSS PROFIT

ESLR = $11,942,000
GRSR = $1,340,396

NET LOSS

ESLR = ($26,669,000)
GRSR = ($2,295,402)

EPS

ESLR = ($0.41)
GRSR = ($0.10)

-----------

On the bottom line, GRSR is still a better value then ESLR with only a (.10) EPS loss compared to (.41) EPS loss in ESLR.

US GAAP audited

[englishman26]

GRSR vs. WWAT

FOR FISCAL YEAR ENDED DEC. 31, 2006

TOTAL REVENUES

WWAT = $17,116,789
GRSR = $55,886,830

GROSS PROFIT

WWAT = $2,719,587
GRSR = $1,340,396

NET LOSS

WWAT = ($11,427,614)
GRSR = ($2,295,402)

EPS

WWAT = ($0.08)
GRSR = ($0.10)

-----------

On the bottom line, GRSR still has a smaller net loss as compared to WWAT. WWAT also has 134 million shares outstanding, as compared to 35.5 million shares out in GRSR but still WWAT's EPS is 20% better.

US GAAP audited

[microhedge]

Nice comp Englishman, thanks for the post...

I'm starting to like Dutch solar real well...

[englishman26]

On a price to earnings ratio, GRSR is many times undervalued relative to these two other solars - but perhaps more speculative given the lack of information available. It's very difficult to really evaluate a foreign pinkie like this one, but if you fancy the risk, the rewards could be large.

[englishman26]

Solar Price/Sales ratios

based on yahoo statistics. How many times revenue are they trading.

STP = 6.6
ESLR = 8.8
SPWR = 15
WWAT = 17
HOKU = 30
FSLR = 31
ASTI = 321
DSTI = 510
XSNX = 7,750

GRSR = less then 1 (0.22)


I'm quite sure this represents the lack of transparency and non-existent good PR that the company has had in the US. Hopefully this will change in the near future!

[microhedge]

Well I'm in ASTI, DSTI and WWAT so I think I can take the plunge here as well, worth the upside potential...

[chinaman711]

I got in yesterday, thanks Englishman for the news update. I have traded this 1 before and it has had some real nice runs when news hits. Im looking for a move back to .46 and if they put out any good news a move to .60 plus, also looks real good long term as they have sales while many of the other solar companys don't have any sales yet. From yesterdays 10k--Changes in Balance Sheet. As of December 31, 2006, we had current assets of $6,732,748 as compared to $60,901 at December 31, 2005, total assets of $12,941,123 at December 31, 2006 as compared to $122,030 at December 31, 2005, total current liabilities of $8,980,602 as compared to $1,262,130 at December 31, 2005 and stockholders' equity (deficit) at December 31, 2006 of $3,939,653 as compared to ($1,140,100) at December 31, 2005. The increase in assets, increase in liabilities and stockholders' (deficit) is the result of the merger with GiraSolar B.V.

[englishman26]

Ludlow has put a price target on it at $4.63:

http://www.ludlowcapital.com/reports/grsr.htm

[chinaman711]

If they were to put out some news in this hot solar market the thing would take off.

[englishman26]

The problem is that the relative lack of news and exposure they have had in the US, allied with the destruction of investor confidence with the "late" (it's a pk - not really late - but not good!) means that they are going to have to do a lot of PR work to get this thing moving. Obviously I hope they do but their US COO has only been in the job 2 months so he might need more time. We'll see I guess!

[chinaman711]

Well at least my CXTIE is moving today : )

[englishman26]

GRSR just released some news. They should having a series of PR and 10Q releases in the coming weeks and months. Definite possibility of a 10-bagger here.

http://biz.yahoo.com/iw/070925/0306771.html

[microhedge]

Those are some serious numbers englishman!!!!

They've got my attention... especially at .398)

[englishman26]

Their original projection for 2007 earnings was $35M but they executed $16M early (in 2006) therefore if there is zero extra business they will have earnings of $19M in 2007 giving them a valuation of ~$1.60 per share. This is a conservative estimate though. Just 4 times higher than todays price! (Maybe take until 2008 for 10-times).

[microhedge]

Yup, duly noted and great for a long play imo...

[englishman26]

Seems to be getting some visability as it's up 20% (to 0.44) today on much bigger than average volume (although that's not saying much). I'll re-iterate that this is just the beginning as my medium term target on this is ~$1.60. (Long term; $4). GLTA.

[chinaman711]

Nice call Englishman and if it gets thru .46 look for .60 again imo. Good luck

[englishman26]

Bought some more of this morning. I like the added attention it's getting and I think it can go to 0.60 in a week or so. GLTA.

[chinaman711]

Hit that .46 should see .60 again imo

[englishman26]

Well this has declined precipitously since I last mentioned it but the 10Qs for the first half of the year just got released.

This stock is irritating because there's a lack of belief that it's real but everything about the financials, press releases, related media, and background of the head of the company in Holland seems very real. It seems like a phenomenal investment compared to every other solar company's valuation.

Another issue that has been holding back the stock is lack of trust in the CEO of the US shell of the company. But it now appears that he doesn't have control of the company at all anyway.

I really think that some kind of true valuation of this company will start to happen now.

[blynch]

Englishman, the 10Q doesn't look to good to me, what did you think of it?
I have a small position in this, but I don't really see a near term catalyst for this thing to move up. If they receive a patent on their silicon production process the stock will blow up, but I see that as a very long shot.

[englishman26]

The 10Qs don't show as much revenues as I'd hoped but they are still good.

The main catalyst here is that the company is still very undervalued. Plus possible uplisting now that their accounts are in line.

Their management is very good and they just need continuing contracts - like any company. Patent would help too.

[CaveatEmptor]

Englishman26,

There are several things that are concerning about this stock although the revenues (compared to the valuation) on the surface appear attractive.

1. Wieland Koornstra may very well be a shady character. He seemed intent on merging his company with USCY and IPWG (both seem to have been shady shells like LVCP). It is hard to buy the claim that Peter Klamka and his gang "tricked" Koornstra. Still, there is a chance that he is clean. If he is clean one really wonders how he was ever talked into doing such a screwed up reverse merger. GRSR, Inc still only owns 51% of Girasolar BV and then there are all those debts. Plus many of the paid pumpers were already lined up.

2. They took out even more debt which can be converted into stock in 2007 (although the CEO did convert some of debt though nowhere near the bulk of it). It is hard to believe that one man is going to get $5 million or more out of this stock. If GRSR ever returns to $2 then Klamka will be a very rich man even if he only converts a part of the debt (to avoid damaging the price too much) and dispenses with the rest. Can it really work out so simply? If they do get a new CEO will they be able to pay the guy?

3. The gross margins are very low. WWAT has a lot better. It does not look like they are able to improve their gross margins very easily since they are engaged in wholesale trade (I think so).

4. The current ratio is below 1. Their current liabilities exceed their current assets by a substantial margin. Even if all the debt (most of which seems to be held to company officers and is convertible into stock) and all interest from it are taken out of the equation then they still have more current liabilities than current assets (especially easily spendable assests such as cash).

Just a few things to keep in mind when looking at this stock.