Re: Solar Stocks are hot

a very good time to buy. After a setback they will come back very strong,

MARLBORO, Mass. (AP) - Shares in solar panel maker Evergreen Solar Inc. plunged nearly 28 percent Monday on investor concerns related to a convertible offering underwritten by now-bankrupt Lehman Brothers.

The stock dive followed the largest-ever bankruptcy filing ever by Lehman Brothers Holdings Inc., which filed for Chapter 11 protection after being felled by the credit crisis and lower real estate values.

Lehman underwrote a deal for Evergreen in July pricing $325 million of 4 percent senior notes due 2013. As part of the transaction, Evergreen agreed to lend Lehman 30.9 million shares for hedging transactions for up to five years.

Investor doubts about the fate of the loan sent Evergreen shares down $1.74 to $4.56 in Monday trading. The stock is now down 64 percent since the start of 2008.

The company issued a statement late in the trading session noting that it lent the stock to Lehman affiliates that have not filed for bankruptcy protection. It said the agreements covering the shares were structured to provide Evergreen Solar with as much legal protection as is customarily available in such transactions.

"While the ultimate impact of the situation is expected to unfold over the next few months, we are availing ourselves of all legal remedies to protect our company and its shareholders in this very fluid situation," Chief Financial Officer Michael El-Hillow said in the statement.

El-Hillow said the company has sufficient cash to pay its debts and support its operating needs as it drives toward profitability in 2009.

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