Knobias Clip Report (11-30-2007)

Submitted By Knobias ClipReport

Alternate Energy Names Get Another Drink From the Well

Friday’s session saw the Dow try to extend a two day rally into three as many of the financials gained while tech names fell, basically swapping places from the past few weeks. Dell shares led the way down as earnings were lighter than analyst estimates. On the commodity side, crude slipped again as speculation OPEC would increase production circulated the floors while the dollar index climbed.

In the small cap space, alternate energy names were in the news again following their recent rallies. Two of the names raised money through private placements, diluting shareholders but at the same time, raising money at ideal times to sustain their growth and implement their plans.

Canadian Solar Inc. (CSIQ) announced that it plans to make a private offer, subject to market conditions and other factors, of approximately $75 million of its convertible senior notes due 2017. Canadian Solar intends to grant the initial purchaser of the notes an option to purchase up to an additional US$11.25 million in aggregate principal amount of the notes to cover overallotments. The notes will be offered to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933. The notes and Canadian Solar's common shares issuable upon conversion of the notes have not been registered yet.

The Company anticipated using the net proceeds from the offering for working capital, general corporate purposes and potential future acquisitions. The announcement comes after a two month rally in the shares that have seen prices spike from $10 to highs in the $18 area before Friday’s close of $15.84. Over a 50% rally will then be followed up with a potentially dilutive financing.

Altair Nanotechnologies Inc. (ALTI) announced the completion of a $40 million private placement of its common stock to Al Yousuf LLC. Under the purchase agreement, Altairnano has agreed to issue an aggregate of 11,428,572 shares of common stock to Al Yousuf LLC at a purchase price of $3.50 per share. The shares will be contractually restricted from resale for at least two years, with one-third of the shares being released from this restriction on the second, third and fourth anniversaries respectively.

The proceeds were noted as being used to support manufacturing growth, working capital and general corporate purposes. The deal comes after shares have experienced a rally over the past two months from the $3 area to highs in the $5 to Friday’s close of $4.05.

Al Yousuf is a leading commercial group in the United Arab Emirates. It’s becoming somewhat apparent that the Middle East is an area that domestic companies are turning to for financing with Citigroup’s recent transaction with Abu Dhabi’s sovereign fund.

In any event, many alternate energy names have seen increased attention over the past few months which put them in excellent shape to raise funds at attractive levels. With many in the same boat, this trend could continue which investors would be wise to watch.




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