Cowen & Co.

21.12.07 Cowen says their recent plant visit indicates ingot/wafer capacity is ahead of the year-end target, thanks to installation of jumbo multi-crystalline furnaces. Firm says polysilicon supply and cost remain risks, but mgmt sees several potential sources to achieve aggressive 2008 production goals. They say TSL plans a series of investor meetings, January 7-17th, which should include an update on the polysilicon plant project and likely lift the shares. At under 17x Street 2008E EPS (and <12x>firm believes the risk/reward is very attractive.
Debt financing the early stage of poly plant should minimize dilution 2008. The equity component would likely dilute 09 earnings but be offset by strong results from 2010 onward.