This is just one reason that the "stimulus" won't work.
By COLIN SULLIVAN of Greenwire
Published: July 7, 2010
SAN FRANCISCO -- A Bay Area solar manufacturer's abrupt retreat last month from an initial public stock offering has analysts questioning President Obama's use of the company as a showcase for federal investments in renewable energy.
Solyndra Inc. enjoyed a national spotlight when Obama visited the company's Fremont headquarters in May to herald it as an example of the federal stimulus at work. The president saluted the solar-panel maker, which received a $535 million federal loan guarantee, as the kind of business that will help the U.S. economy turn the corner (E&ENews PM, May 26).
But the reality is Solyndra has been hemorrhaging cash and decided last month to pull back from an initial public offering (IPO) in favor of raising another $175 million from private investors. That brings its total investment from venture capitalists to $1.1 billion, said Shyam Mehta, a senior analyst at GTM Research.
Facts about the company's financial picture are relatively easy to uncover. In 2009, Solyndra lost $172 million, according to documents filed with the Securities and Exchange Commission. A year before, losses were $242 million.
1 comment:
With all the subsidies required for these kinds of ventures, it's no wonder they're called "green".
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