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Timminco Benefits from Bailout

by: FP Trading Desk October 06, 2008 | about stocks: KWT / TAN / TIMNF.PK    

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The United States Treasury introduced the $700-billion bailout to try and save the economy from disaster. According to Paradigm Capital analyst J. Marvin Wolff, an odd side effect of that bailout could prove to be a big win for solar-grade silicon maker Timminco Ltd. (TIMNF.PK).

One piece of legislation that was attached to the bill extends investment tax credits in the solar industry to 2013. Mr. Wolff noted that this "bodes very well" for the solar industry just as it is building steam in the U.S., which should support strong pricing for solar-grade silicon.

He wrote in a note to clients:

In addition, as new polysilicon production build-outs experience delays and funding challenges in tight capital markets, the demand for Timminco's upgraded silicon should remain strong and the ability to attract new mandates should remain robust.

Mr. Wolff expects Timminco to come out with some positive news through the fourth quarter as its solar purification line moves along the commissioning ramp and the company commissions the ingoting furnace. He maintained a "buy" rating on the stock and a one-year target of C$45.00 a share. That is nearly quadruple the current price.

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This article has 1 comment:

  •  
    Oct 12 04:40 PM
    Tax credits are all well and good, but aren't there still questions about whether Timminco can meet its production goals? Schimmelbusch and his team have promised a lot, but have yet to deliver.
    Reply
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