Also planned is to harness geothermal energy to generate electricity on Sedef islet. The project will include the production of hydrogen for energy.
Which companies might be the beneficiaries of a windfall in government money and thus be good stock investments right about now? Your guess is as good as mine. However, one small company that has already received a piece of the "renewable-energy-on-Turkish-islands pie" is GiraSolar Group, Inc. (OTCPK:GRSR). GiraSolar Group is a Dutch-American company, with its headquarters in Ann Arbor, Michigan. Ann Arbor is a long way from Anatolia, you might say, but GiraSolar Group does have a Turkish connection: it has a 51 percent interest in GiraSolar Turkey Ltd. Ste.Earlier this month, GiraSolar, Inc. announced that its subsidiary, GiraSolar Turkey Ltd., has received invitations to participate in renewable energy projects on two Turkish islands: Kizilada (Red Island) and Goekceada (Wind Island.) Kizilada, located in the bay of Fethiye, will be host to an entirely commercial project to supply this major tourist area with power, with a consortium gambling that a "trifecta" solution of solar, wind, and generator power will do the trick. Goekceada, located in the West of Turkey near the ancient city of Troy, will be a UN-sponsored project to demonstrate the value of solar and wind power as supplements to traditional power stations.
If you have ever been on vacation to Turkey, then you know that there the power can go out on a daily basis. Recently, one Turkish island was without power for weeks after a storm. So, you can perhaps understand the motivation to diversify their power sources, so that maybe the lights won't go out every day (though their real problem is probably their power grids.)
About the announcement of the invitation to participate in renewable energy projects, GiraSolar Turkey's resident MD, Erol Barendrecht, commented: "It is a great honour to have been selected to participate in these projects and a reward for our continuing efforts to bring solar into the spotlight in Turkey. It is also recognition for our team and their skill that we are now allowed to design these complex energy systems, involving solar, wind and grid or generator power, to assure reliable energy supply. These systems will be important demonstrations of how alternative energy in general and solar specifically fit into a more secure and diversified energy supply system for the entire region. Furthermore, the use of a lease construction in one of the projects is a first in Turkey and a major breakthrough in financing projects."
However, GiraSolar Group is in financial trouble. Will this project for its subsidiary be enough to save GiraSolar from oblivion?
GiraSolar Group is tiny and critically under-capitalized. According to their latest SEC filing for the period ending September 30, 2007, the company had only $297,000 in cash - an insufficient amount for the next quarter's operations. The company continues to operate via debt and stock sales. GiraSolar Group's subsidiary, GiraSolar Turkey, can't be much better off. Two islands seem like more than enough to keep GiraSolar Turkey occupied. Unless they can rapidly ramp up their staff, they may not receive invitations to work on the latest two islands to be targeted for solar and wind energy: Bozcaada and Sedef islet.
GiraSolar Group's stock, GRSR, made its debut in the second quarter of 2007 [correction: 2006]. The stock promptly folded up its tray tables and ever since has been on a descent towards landing at a price of zero. Despite the good news this month, its price sagged lower, now trading for just $.11 per share:
GiraSolar Group stock may be undervalued. Perhaps more likely, it is on its final approach to zero. Don't go plunking down your retirement fund on this tiny, high-risk, pink sheet company.
User comments
Above, "Slainte'" implies the article writer is guilty of various conspiracies. Realize that I KNOW there was no conspiracy, so from my point of view, Slainte' appears to be suffering from paranoid delusions.
My manager has not ever told me to cover a particular stock. I do not take any position on any stock I cover, nor do I receive compensation to promote or trash certain stocks.
The article was in reaction to an announcement from the Turkish government the day before, as suggested by the first word "Yesterday."
The article presents two basic facts. First, the company was in financial trouble according to their latest SEC filing. (It had a bank overdraft of $551,720 for that period, I'll add.) Second, the company's stock price sank (by 45%) after earlier news (on February 7) that GiraSolar would be involved in solar projects on two Turkish islands.
Therefore, the article reasoned, you should not expect the January 29th news of additional projects on Turkish islands to improve the situation with the stock price, especially since GiraSolar may not get a piece of that pie.
The article stated that either the stock is undervalued or it is in trouble. There is no conspiracy in a tautology.
GiraSolar's letter to shareholders came out on January 30, with news of new projects. And on this "good" news, GRSR stock sank another 45% from 11 cents a share to 6 cents a share today, March 6 at the time I'm writing this.
It alleges: "Two islands seem like more than enough to keep GiraSolar Turkey occupied. Unless they can rapidly ramp up their staff, they may not receive invitations to work on the latest two islands to be targeted for solar and wind energy: Bozcaada and Sedef islet."
The author does not realize that these projects are close to finished? Ignored the 10Q-s comments about the staff? Why does it say nothing of the valuation potential?
When a person frantically repeats ZERO CENTs! ZERO CENTs! over and over again that is not a rational argument and has an air of scam. Here is a hint: there are other analysis of the company that actually possess a command of the facts and make well reasoned observations unlike this one. They can be searched for without too much difficulty. The agencies and organizations working with this company actually know something about it.
The following do not take this screed's claims seriously:
Senternovem, ChinaSunergy, TrinaSolar, Aleo, the UN sponsors, the components of the African joint venture, and the entities invovled in REFLECTS, SELFLEX, and the agency which granted the GiraSi patent.
As it so happens the company will be having management team members in Sofia (they did not disclose why) in late February and they will likely pay a visit to the law firm that represents the official seat of hotstocked.
I wonder how the hotstocked rep wil react to that.
EU laws are not complicated in matters like this as the intentions count besides the facts and the judges are free to form their informed opinion befure ruling.
Fast and simple and deadly for wrongdoers. It is not the USA.
FD
PS: tens of millions of revenue in 06 and some estimated 20M in 07 is what Hotstocked calls tiny? An a pink sheet company that keeps up its pants without printing gazillions of shares is financially in trouble? How come Hotstocked reports very positive then on companies with no revenue and printing share after share, but is not positive on GRSR? Case is made, ruling clear: hotstocked gets burned and will have to find a new official seat.
Now that the sleezebucket Peter Klamka has been relieved of his duties of which he performed none other than work with others to destroy the grsr pps...you post this inuendo of doom?
And you received your information from where or actually whom? Did you fail to mention how in spite of the choking cash effect Peter KLamka may have had on GRSR, the filings came out and business continues to grow. Where is your update for today showing the shareholder letter which is self explainatory. GRSR will be adding zeroes as in 14.00 not going to zero. Check yourself and update your site if you wish to attain any credibility or we will think that you too are a Peter Klaka/Barton PK LLC cronie too and as you can see...they don't last too long. glta
Do your own DD
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