Why JA Solar is a Smokin’ Hot Buy Option $JASO
Beacon Equity Research
JA Solar Holdings Co. Ltd. (NASDAQ: JASO) today announced it has entered into strategic supply agreements with BP Solar in which JA Solar will provide more than 185 MWs ofmono-crystalline and multi-crystalline solar cells this year andthroughout 2011.
Per the agreement, BP Solar will be supplied with more than 100 MWnext year, starting in the first quarter. Under a separate agreementbetween the two companies, JA Solar will provide more than 85 MW to BPSolar, a majority of which JA Solar has already supplied. The companywill deliver the remainder through the fourth quarter of 2010.
Dr. Peng Fang, CEO of JA Solar, noted that the companies have workedtogether since 2008 and is very pleased to extend its relationship,which provides the company with firm orders through next year. Dr. Fengsaid that with the company’s leading cost structure, it offers BP Solar a cost advantage in the residential, commercial and utility markets.
JA Solar last month announced that it entered into a FinancialPartnership Agreement with China Development Bank in which JA Solar will be provided with RMB 30 billion of credit facilities and financing thebank. The agreement supports JA Solar’s long-term growth and corporatedevelopment plans.
Apart from the financing agreement, JA Solar also signed a series ofsupply agreements over the last few months. In June this year, JA Solarsigned a multi-year supply agreement with MEMC Electronic Materials Inc. Following this, the company signed a 70 MW supply agreement withSolar-Fabrik AG in July. The company also signed strategic agreementswith Innovalight in July.
JA Solar Holdings Co. Ltd. stock has a 52-week range of $3.57-$9.47. The shares are currentlytrading above their 50-day and 200-day moving averages. The shares have a support level at $8.20 and a resistance level at $8.89. Year-to-date,the shares are up an impressive 54.06%.
Source
