The downward spiral that Ascent Solar Technologies Inc (OTCMKTS: ASTI) continues to experience is not exclusive to the company itself. Most, if not all the solar energy stocks are in a similar situation. A quick scan through stock price charts of solar energy ETF’s will reveal the state of the Solar industry as a whole. Both ETFs and solar power stocks show a similar pattern across the board. Almost every chart shows prices peaking in early to mid-2014, followed by a gradual downward slide. Finding a solar stock that has made a new high since is proving to be a challenge.A deeper analysis leads to the conclusion that the problem is not with individual solar companies, the problem lies with the entire solar industry. In early to mid-2014 when crude oil was trading above $100, and the Obama administration was unveiling sweeping regulations that would create a difficult business environment for the coal and oil industries in the United Stated, the viability of alternative sources of energy seemed inescapable at the time. The trend seemed to be expediting the use of alternatives energy sources, including solar.However, the subsequent sharp downtrend in crude oil prices that started in mid-2016 and took crude oil prices below $30 a barrel in early 2016, made oil more viable than the proposed alternatives. When we coupled this with the diametric change in government policy from the incoming Trump administration, it’s no wonder that the entire solar industry has again been relegated to the “experimental” category, causing investors to sour on the once heralded sector.For those who are not familiar with Ascent Solar Technologies Inc, it is a Colorado based company, that is a developer and manufacturer of state-of-the-art, lightweight, and flexible thin-film photovoltaic (PV) solutions. Their products are more flexible and affordable than most traditional solar panels, and can be can be integrated into many widely utilized building materials, aerospace applications, and consumer electronics for portable power. The technology can also be adapted for large scale terrestrial solar deployment. In 2011, Ascent Solar modules were named one of TIME Magazine’s 50 best inventions.When we last reviewed Ascent Solar Technologies Inc we learned that the company had secured new funding and that it had made credible strategic arrangements to enter into the solar market in China on a sizable scale. These positive steps however, haven’t had any positive effect on the stock price.
The price chart for Ascent Solar Technologies’ stock shows little to no movement in spite of the company’s business activities. The stock is currently trading at $.0007. Market capitalization now stands at $1.79 million, with 2.56 Billion shares outstanding as of March 31, 2017.Ascent Solar Technologies, Inc, reported results for the full year ended December 31, 2016. The Company posted net revenue of $1.75M in 2016, a decline of approximately 73.2% from $6.54M in 2015. Loss from operations in 2016, however, improved by $3.1M, or 11.2% from -$27.7M in 2015 to -$24.6M. Net loss for the year 2016 was -$38.9M, that included approximately $14.3M in non-cash interest expense and change in fair value of derivatives & extinguishment of liabilities that were associated with the outstanding convertible notes and convertible preferred stocks. Overall, net loss improved by $6.9M, or approximately 15% from -$45.8M in 2015 to -$38.9M in 2016. The company expects expenses and losses to decline further as the Company continues to restructure and streamline its operations in 2017.
"The Company has made significant progress in these developing high-value markets, and will continue to sharpen our focus in such areas where Ascent is truly at the forefront of the competition. Notable milestones include the recent announcements that the Company's superlight thin-film modules were selected by JAXA (Japan Aerospace Exploration Agency) for the second phase of evaluation for deep space mission, as well as the securing of a major contract from an Asian-based customer.”
The day will inevitably come when drilling for oil or gas, or burning coal to satisfy the demand for energy will become less viable than extracting energy from unlimited sunlight. Whether the transition results as a consequence of changes in the “political winds,” obsolesce, lack of supply, or because the complete destruction of the environment is “5-minutes in front of our faces,” alternative source of energy, solar in particular, will once again be in “vogue,” and companies like Ascent Solar Technologies will once again reign. We will be updating our subscribers as soon as we know more. For the latest updates on ASTI, sign up below!Disclosure: We have previously been compensated a fee of seven thousand five hundred usd regarding ASTI by a non affliated third party, Upstate Webwriters, Inc. This agreement has since expired.
Discover Hidden Gems
Don't miss the next big opportunity. Subscribe for timely alerts on potential market movers.
