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End game in sight for PV Crystalox

The solar wafer maker’s cash pile exceeds its market capitalisation and expect a decision on a cash return by the year-end
September 17, 2018

PV Crystalox Solar’s (PVCS:25p) cash pile has swollen to €39.6m (£35.3m) and will be boosted by a further €14.5m when the solar wafer maker receives the final cash settlement shortly from a leading photovoltaic company that failed to purchase wafers in line with its obligations under a sales contract.

This means that all of the company’s net asset value of €54.5m will be backed by cash worth 30.4p a share. The balance sheet is clean. What’s left is a glass and quartz cutting operation in Germany that services chip makers and the optic industry that could be sold to management or shut down. Ultimately, a likely cash return is the end game. Expect news on this front by the year-end. So, having last rated the shares a hold at 25p ('Endgame for PV Crystalox', 23 August 2018), I maintain that advice.

 

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