Evergreen Solar (ESLR) NewsBite - ESLR Sells $325M Convertible Notes

Posted on Friday, June 27, 2008 10:57 AM

Evergreen Solar Inc. (ESLR) opened at 9.90. So far today, the stock has hit a low of 9.80 and a high of 10.30. ESLR is now trading at 10.03, down 0.80 (-8.08%). The stock hit its 52 week high of 18.85 in December and set its 52 week low of 7.52 in March. ESLR slipped at the beginning of this year, but is showing signs of rebound recently. Evergreen Solar shares have been plunging following a dilution from a convertible debt offering announced today and a related stock-lending agreement. Evergreen said it priced $325 million of 4% senior convertible notes due 2013. Technical indicators for the stock are bullish but slightly deteriorating while S&P gives ESLR a very positive 5 STARS (out of 5) strong buy rating. If you’re looking for a hedged play on this stock, consider an August bear-call credit spread above the $12.50 range. ESLR stock could rise up to 24.6% before expiration and this position would still be profitable. [RHF - Seven Summits Strategic Investments NewsBite]