Dear John, Shalini, Jerry, Shannon, and Brad,
I enjoyed reading your research and appreciate your contributions to this case study. Thank you for participating! Sincerely, Adrienne

To Shalini, Jerry, Shannon, Brad, Martha and Adrienne

I appreciate each of your input over the last few weeks and the time everyone spent reviewing the stocks. This is my first time to be a part of a study like this and I found it to be a great experience. I think it encouraged me to stay focused and it allowed me to see things with other eyes, yours. It also helped build my confidence in my conclusions about the stocks as many times I was in agreement with the group. This was very important for me as sometimes when we as students reach conclusions; it’s nice to know we are going down the right path.

Thanks

***************************************************************************************
RESTING DAY STUDY HALL - WEEK 5 REVIEW

I agree with your overall assessment of STP. For now it is a watchlist stock and has plenty of work to do technically and fundamentally. But it is a young IPO with a strong future potential. With such a steep descent an inverse head and shoulders is a likely bottom formation especially with the current price action on weekly charts.

I am very proud of your work. Great job.

Martha
*************************************************************************************

**************************************************************************************
**************************************************************************************
RESTING DAY STUDY HALL - WEEK 5 ASSIGNMENT

#1. Brad
Folks:
I just wrote a few paragraphs and lost them all so I will summarize: Based on the data we have covered up to this point I think STP has the potential to be an leader in the solar industry. Although the indicators and signals are not currently showing a buy and 6 of the 12 prerequisites failed, I think when it completes its bottom those things will change and it will be a good candidate for a position buy. It is worthy of being on a watch list in my opinion. Brad

#2. Shalini
I agree with Brad, despite the fact that currently STP does not meet the criteria for Long Term, and the chart patterns are not ideal, I am still interested in keeping this stock on a watch list. In the current market condition as we transition from one cycle to another, I will be monitoring the solar industry to see if it lives up to its promise. Shalini

#3. John
Review of STP
STP seems to be on its way to becoming a leader in solar energy. In review of its stock scans and its financials I think that this company is as many good companies, a victim of the current market and economic times. I think this stock is a good watch list stock. However, there are a few concerns that it needs to overcome. First, it seems to have good products, but it doesn’t seem to be concerned about being a totally “green” company. For this industry, the “first buy” folks will want that type of company before it spreads to the large numbers. Second, it may need more distribution outlets for its products. It appears most of their sales is located in California, which for this product is probably the leading area of concern as they tend to be greener and also move on new tech ideals faster than other parts of the country. Third, they need to continue to improve the products, as do all the solar companies. At this time, I’m not sure there is enough bang for the buck. The efficiencies of the panels need to improve to make a faster pay back of the initial investment. A fourth area, which we did not really review, is how to store the energy produced. If they could come up with a way to couple storage of the energy so once the sun goes down the energy could be used in a house or commercial facility they would really have a sweet product.

For now I will watch. As fuel increases in price I think we will see this company’s financials and scans greatly improve, or if they break the efficiency barrier of the solar panels then they will really move up. John

#4. Jerry
I too agree that in the long run STP will be a leader in solar power. As John indicated STP is doing business in California by signing a deal to build a solar power plant in Santa Barbara last week. This relates to several other countries that they have offices in and/or doing business world wide. STP ought to get a boost just from trying to help solve the pollution problem in it's home base of China. They have re-negotiated production of it's solar panels to lower cost. As indicated by John, Brad and Shalini the technicals do not look good but I will continue to watch STP for improvement. As alternate energy gets more attention and acceptance I believe STP will be in the lead pack. Jerry

Brad, Shalini, John, and Jerry
*************************************************************************************
*************************************************************************************

*************************************************************************************
RESTING DAY STUDY HALL - WEEK 4 REVIEW

Excellent summary by Shalini, thank you.

STP faces many challenges at this time even though they have a lead in productivity capability. FSLR has the lower cost and other firms are creating new technologies that could potentially be displacement technologies. All of this points to the fact that right now solar energy dominance is anyone's opportunity to grab.
I would not discount STP but it needs to step it up.

Great work,

Martha
****************************************************************************

Shalini,
Thanks, well done.
John