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There's a bold flag flying above the solar energy camp, and I like the dialog coming from at least one of the men raising that flag. T. J. Rodgers, CEO of Cypress Semiconductor Corp. (NYSE: CY), laid it on the line recently when he stated his opinion regarding CEOs like General Electric's (NYSE: GE) Jeff Immelt, Wal-Mart's (NYSE: WMT) Lee Scott, and Peter Darbee of PG&E. Rodgers was quoted by CNN Money as saying, "Every one of the names you just mentioned would flunk his ass in the most rudimentary test about global warming."
It's not necessarily that I agree with what Rodgers said, but any man who has stuck with a viable manufacturing concept for as long as Rodgers has stuck with the truth of solar electrical generation, and then has the gumption to call into question the motives of his peers in pursuing a similar path, gets a nod of respect from me. It's not about what he said, it's about why he said it.
With the major oil companies doing the dance of damnation upon our very heads, men like T. J. Rodgers are exactly what we need, and given the prediction that within five years electricity derived from solar energy shall arrive at grid parity absent of subsidy, solar investors like Rodgers can at last stand their own ground and boldly say their piece among the powerhouse players in the global energy game. Grid parity means that electricity generated through solar technologies will be cost competitive with today's current methods of generating electricity. They said it couldn't be done but some of us failed to believe that.
Rodgers has put his backing behind a twenty-year-old solar start-up company called SunPower Corp. (NASDAQ: SPWR) and its leader Dick Swanson. SunPower makes and installs photovoltaic cells for commercial and residential applications. That's all very nice, but what you're probably looking for are some supporting numbers. How about this; CNN Money reports that since going public two years ago, SunPower's stock price has grown by about 450% and the company expects approximately $160 million in profits on just over $1 billion in sales next year. To me, that seems like a pretty firm platform to shout from.
The icing on this solar cake was Rodger's comment regarding his opinion of that perennial pain in the rump, Al Gore. When asked by Marc Gunther, writer for Fortune, "What about Al Gore?" Rodgers responded: "I wouldn't trust Al Gore as far as I can throw him, which isn't very far -- he's gotten a little hefty since he left office."
For that comment alone I'd buy T. J. Rodgers a nice lunch.
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Reader Comments (Page 1 of 1)
8-23-2008 @ 1:10AM
Randy said...
TJ Rodgers is a jerk, and the day I believe he's doing something for other than merely stock profits is the day cows fly. He's bad for investors and worse for any poor sould who has tried to make a career in one of his companies. I know, I was one.
10-15-2007 @ 2:26PM
Sam Clarkson said...
Soaring Stock Prices do not make companies great in and of themselves.
SPWR (sunpower) is trading at 400 times earnings, and fifty times expected earnings for next year.
the last twelve months' revenues are 455 million dollars, and the company costs over Seven Billion.
this is a capital intensive manufacturing business, with oodles of competitors.
that soaring stock price is a recipe for disaster for today's investors.