Topic: How To Invest

Could you please provide a critique of Day4 Energy? The company’s patented process shows competitive promise in the expanding renewable energy market place. What is your opinion?

Article Excerpt

Day4 Energy, $0.81, symbol DFE on Toronto (Shares outstanding: 36.7 million; Market cap: $29.8 million), designs and makes solar panels using its patented electrode technology and silicon cells. Day4 believes that its technology converts sunlight into electricity more efficiently than existing technology. The company has been severely hurt by the weak economy and falling prices for solar cells and panels. Its revenues have dropped, it is losing money, and it is reporting negative cash flow. As well, advances in solar technology add considerably to the risk of solar-power companies that depend on a single technology. They constantly risk being overtaken by competitors with a superior product. Then too, the belief that new and improved technology is coming may lead customers to hold off on buying solar equipment. Day4 Energy’s loss per share may drop to $0.18 a share this year from $0.32 in 2009. But while the company’s solar-technology research looks promising, it needs a rebound in solar-power technology prices to show a..