A commodity producer just got a whole lot of money to expand from a Wall Street firm. This means someone doing hard math has confidence that either A. This company will expand in size and make use of the $40 million well, or B. The price of silicon for solar will stay flat, supporting healthy margins. There are other mixes also – some price falls, but lots of growth, etc.
Stanley has taken a 5.1% stake in China-based polysilicon producer Daqo new Energy, according to an SEC filing. The banking giant said that as of May 14 it owned 16.4 million ordinary shares of Daqo, equivalent to 656,100 of the U.S.-traded American depositary shares, as each ADS represents 25 ordinary shares.
Source: Morgan Stanley buys 5.1% stake in Daqo