Saturday, February 26, 2011

Valuation of DayStar Technologies, Inc.

DayStar Technologies, Inc. (NasdaqCM: DSTI ) ( ) DayStar Technologies, Inc., a development stage company, engages in the development, manufacture, and marketing of solar photovoltaic products to the grid-tied and ground-based photovoltaic markets. The company offers solar photovoltaic modules to convert sunlight into electricity. It provides monolithically integrated copper indium gallium selenide modules on glass laminate substrates for centralized utility power plants, commercial building roof tops, and smaller residential roof tops. The company was founded in 1997 and is headquartered in Santa Clara, California.

As of February 26,2011, it had a 52 week stock price range of $0.72 - 3.69. As of December 31, 2009, the company had a net income loss of $25,040,000 as well as losses in 2008 and 2007. As of December 31, 2009, it had no long term debt and net tangible assets of $23,141,000. (Source: Yahoo Finance)    

Since its founding, DayStar has been focused on developing a manufacturing process based on sputtering technology that would enable high volume production to achieve the lowest costs for the highest solar cell performance. ( Source: DayStar Website )

DayStar Technologies is in the process of positioning itself to take a leading spot in the Solar Energy market which shows promising potential. However, they are currently still in the development process. Other green initiatives, such as recycling and water use reduction in their operations, by the company were not found on their website.

This is a Green Business according to all available information. Currently, the business is properly valued as a company in its start up phase even though it is over 10 years old. The company is developing a new product and manufacturing process which takes time and, in the energy market, lots of financial commitments. However, the company does have some assets and no long term debt as of 2009. The stock price is still very low, and if the company’s product succeeds, then the company should have no problem selling its product.

Overall, investing in any company with income losses or if the company is still in development phase should be considered with caution.