GOE 0.00% 2.7¢ go energy group limited

I votes for holding the divvie at the quantum of the last half,...

  1. 761 Posts.
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    I votes for holding the divvie at the quantum of the last half, or suspending it altogether to concentrate funds for expansion.

    Solco is a panel wholesaler in a rapidly expanding market (Australian installation expected to expand from around 30MW in 2009 to possible 130MW in 2010)=good
    Panel prices halved in 2009 and may drop another 25-30% in 2010 taking supply chain margins down with them = bad for SOO
    Solco managed to supply about 17% of Australian module installations last year (open to correction), SOO has to at least maintain this in the face of competition from AFT/AIR/CBD/EnergyMatters/ORG and so on.
    This market is developing very rapidly on expanding module production, and declining installed cost which is driving rapid vertical consolidation.
    If SOO slips behind it may not be able to recover.
    SOO needs to build on its relationship with AstroEnergy, inverter suppliers and cement its relationship with the equally rapidly maturing (read centralizing) installer market while the market is still establishing.
 
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