Posco is undergoing restructuring. (Korean Times...query POSCO ENERGY news) Recent moves by the new CEO have garnered Posco “buy” “outperform” “long” ratings from numerous analyst. Posco has chosen to get out of the solar business, seeking buyers for its solar installations in the US, stating: “The decision for huge investments in the solar industry was wrong,” adding: “Latecomers to the market expecting a high margin business are going to be confronted by compressing margins in an increasingly competitive business.”
Chairman Kwon Oh-joon, who took over in march, said the Steel industry is in a prolonged global wide slump and Posco will concentrate its efforts on three core areas going forward: Steel...Energy (FUEL CELLS)...Materials (lithium and nickel). Emphasis, demands a replay of the most important statement the CEO made, pertinent to Fuel Cell investors: “LATECOMERS TO THE MARKET EXPECTING A HIGH MARGIN BUSINESS ARE GOING TO BE CONFRONTED BY COMPRESSING MARGINS IN AN INCREASINGLY COMPETITIVE BUSINESS. As Solar is concerned, Posco got to the game too late...with Fuel cells, they are determined not to make the same mistake. Knowing FCEL is setting up for a first place run away, Posco and NRG, in early for the trident lead. |