Suntech Power Holdings Co., Ltd. (ADR) Investor Alert: Accounting Irregularities Investigation
Suntech Power Holdings Co., Ltd. (ADR) Investor Alert: Accounting Irregularities Investigation
PR Log (Press Release) – Feb 08, 2010 – An investigation on behalf of investors in Suntech Power Holdings Co., Ltd. (ADR) (Public, NYSE:STP) over Securities Laws violations in connection with possible accounting irregularities at First Solar was announced.
If you purchased shares of Suntech Power Holdings Co., Ltd. (ADR) (Public, NYSE:STP) or have additional information relating the investigation, you have options and you should contact the Shareholders Foundation, Inc at:
Email: mail@shareholdersfoundation.com or at: +1 (858) 779 – 1554
According to the investigation by a law firm the investigation focuses on reports of possible accounting irregularities at Suntech Power Holdings Co. Ltd. (NYSE: STP). Suntech Power Holdings launched its initial public offerings in December 2005.
According to an October 2, 2009 article in Barron’s, Gordon Johnson, a securities research analyst at Hapoalim Securities, warned in a research note issued to clients that Suntech Power Holdings may be guilty of “aggressive revenue recognition.” The Barron’s article further reported that Johnson questioned the “longer term quality of the industry’s growth” and noted that “[w]hen growth slows for industries . . . the participants often resort to what [Johnson] calls financial chicanery to hide the slowdown and that’s what [Johnson] expects from solar tech companies.”
According to the Barron’s article, Johnson questions revenue trends, including when companies’ cash flow from operations is less than new income for multiple quarters.
Johnson noted that:
Suntech Power Holdings (STP), similarly, has generated less cash from operations than net income for 11 of the last 12 quarters.
Suntech Power Holdings reported in 2007 Total Revenue of $1.34826billion with a Net Income of $171.28million and in 2008 Total Revenue of $1.9235billion with a Net Income of $88.20million. Shares of Suntech Power Holdings (STP) recently traded at $13.01 per share, down from its 52weekHigh of $21.38 per share, $47.81 per share in August 2008 and $81.84 per share in 2007/2008.
Suntech Power Holdings Co., Ltd. (Suntech) is a solar energy company that designs, develops, manufactures and markets a variety of photovoltaic (PV) cells and modules. It also provides PV system integration services in China. The Company’s products are used in a variety of residential, commercial, industrial and public utility applications in various markets. Suntech sells its products in various key solar energy markets worldwide, including Spain, Germany, the United States, China, South Korea, Italy, the Middle East, Australia and Japan.
Those who purchased shares of Suntech Power Holdings Co. Ltd. (NYSE: STP) or have additional information relating the investigation, have options and should contact the Shareholders Foundation, Inc at:
Email: mail@shareholdersfoundation.com or at: +1 (858) 779 – 1554
Updated 02-09-2010
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