Solar panel maker Evergreen Solar (ESLR) jumped 16% on the week after it signed two solar panel supply contracts worth a total of $1 billion. One of those deals is with German-based Ralos Vertriebs, a major European installer of solar power systems. It’s worth about $750 million alone.
Our “Surprise Friday” guest is the company’s CEO Richard Feldt. Following is a summary of the main points made during the interview.
What exactly do you do?
"We’re an integrated manufacture," replies Feldt. "We make solar wafers out of silicon and we turn those wafers into solar cells. (In other words something that can convert sunlight to electricity) And then we assemble a bunch of cells together and we put it in a glass lamination with an aluminum frame and it becomes the solar panel that you recognize."
Do you sell directly to consumers?
"No, we sell to installers and distributors who will get that on your roof for you."
Is demand for solar directly correlated to demand for oil?
"It’s not directly related to oil but the demand for solar remains very strong," he replies. "Solar panels generate less than 1% of the electricity produced today. So the demand for solar is virtually infinite, right now."
Traders, what do you think of ESLR stock?
Not right now, says Jeff Macke.
I’d buy them on dips, counters Jon Najarian.
For an in-depth explanation about how solar power is generated please watch the video.
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Trader disclosure: On May 23, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (HAS), (MSFT), (INTC), (WMT); Jon Najarian Owns (AAPL), (AMR), (BHI), (BUD), (DELL), (FTO), (VLO), (OII), (CPX); Jon Najarian Is Short (LEH); Seymour Owns (AAPL), (F), (INTC), (MER), (MSFT), (TSO); Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE)