I'm increasingly led to believe that when it comes to the solar market, it's not what you know, but whom you know.
In my take on First Solar's
After sucking wind in the fourth quarter, JA Solar acknowledged that Q1 would be even worse. Management wasn't kidding. Revenue plummeted another 76% sequentially, bringing the top line to a paltry $34 million in sales. On the conference call, management stated that sales into China accounted for 77% of revenue in the quarter, versus 60% in Q4. The collapse in Chinese demand hit JA significantly harder than SunPower
In addition to a pretty solid liquidity position, JA Solar has an attractive cost structure. For example, its long-term polysilicon contracts are still some 10% lower than the current spot price, which has imploded in recent months. The company just needs to make some connections to move up in the world.
The company does have a friend in BP