In the wake of several reports here on questionable federal loan guarantees for solor power companies — including the SolarReserve project near Tonopah ($737 million) and the First Solar plant near Primm ($2.1 billion) — an alert reader clued me in on another, this one in California.
Anonymous suggested, “And check out SunPower (SPWRA), a ‘green’ firm that just qualified for $1.2 Billion in loan guarantees from Uncle Sugar. This is estimated to create a stupendous 15 permanent jobs at a company whose stock has plummeted from $127 per share in 2007 to a rockin’ $8.00 per share today. If Wall Street won’t invest in this turkey, why are we?”
Good question, anon. But the stock actually peaked at $133.61 on Dec. 7, 2007. The stock market has not put much faith nor capital into the firm since. This morning it is trading at $8.07. But the Department of Energy is throwing our money at it.
According to Fox News report SunPower lost $150 million in the first half of this year and its debt is nearly 80 percent of its market value. Also, the company has been sued for allegedly misstating its earnings.
Like the aforementioned solar firms above, SunPower has a Democratic connection. California Democratic Rep. George Miller’s son is the company’s top lobbyist.
Investor’s Business Daily today asks in an editorial:
“So what exactly does SunPower have going for it?
“As the Daily Caller reports, it has paid lobbyist Patrick Murphy, a confidant of Senate Majority Leader Harry Reid, at least $290,000 in lobbying fees since 2009. SunPower’s political action committee gave $16,500 to Democratic congressional candidates in 2010, vs. $500 to the GOP.
“Reid got the largest single donation, $4,000.”
Give me the warm power of a campaign contribution.
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