Hoku Scientific Inc (NASDAQ: HOKU) subsidiary, Hoku Materials, just signed a pact with SunTech Power Holdings Co Ltd (NYSE: STP) wherein Hoku will sell and deliver polysilicon to Suntech beginning in mid-2009. The deal, which was announced yesterday after the markets closed, has sent the stock skyrocketing up nearly 60% to $7.97 in after-hours trading. SunTech closed yesterday at $32.28 and later gained 9c in the extended trading. Shares of Hoku and SunTech are currently trading up $7.38, or up 60.65%, and at $33.00, or up 2.11%, respectively.

The $678M agreement, which has a 10-year term and also allows either company to opt out of the last two years, provides for the delivery of polysilicon, used to make solar energy panels, at set prices. This deal follows an agreement in January between Hoku and Sanyo Electric Co Ltd (OTC: SANYY) that may bring an additional $370M in payments to the materials science company.

Hoku is currently in the process of building a $220M polysilicon production plant in Idaho in order to transition further into the solar industry. The plant will produce polysilicon for its own solar panel business, creating 200 jobs in the process, and will offer excess supply to the semiconductor market.

Analysts at investment bank Thomas Weisel believe this could be a good deal for Hoku, particularly amid its transition into the solar industry. The firm, however, is still concerned about Hoku's ability to raise $150M in debt financing, which it is seeking for the plant. Hoku believes it is currently on track with the plant, but if the company is unsuccessful in building the polysilicon plant or if it does not meet certain milestones with its products, the initial direct deposit must be returned to SunTech.

The Commercial Finance division of General Electric Co. (NYSE:GE) is proposing a buyout of Japan's Sanyo Electric's (Other OTC:SANYY) credit operations for a cool $1.1 billion in cash. The board of Sanyo is recommending to the shareholders the acceptance of this deal. For GE, it is the smart move.

General Electric is a hugely diversified company with products ranging from light bulbs, aircraft engines, medical imaging equipment, kitchen and laundry appliances to water processing to media -- with its ownership of the NBC Network. GE has had a difficult time posting up growth numbers since CEO Jeff Immelt took the reins from the legendary Jack Welch some seven years ago. Welch was certainly in the right place at the right time and guided GE for a couple of decades as this company became one of America's largest corporations. Along the way, shareholders were amply rewarded by holding this stock.

The past few years have seen GE stall out and the shares have been a subpar performer. From early 2002 to present, the stock has been range-bound between $39 and $26 -- not exactly enamoring the long-term shareholders. Also, because of GE's massive presence in the S&P 500, institutions must own the shares. The pressure has mounted on Mr. Immelt to grow this companies earnings.

General Electric seems to be focused on the financial divisions to grow the earnings line more aggressively, and they are correct to do so. The GE Commercial Financial division has over $230 billion in assets and operates in more than 100 countries worldwide. There is leverage in this division that somehow the light bulb division will and cannot match. GE is acting more and more like a commercial bank, and with commercial bank margins. Using its mighty cash position and the currency of its shares, GE needs to acquire more assets in the commercial/consumer lending area if it expects to attain a solid 10% growth in revenues and earnings.