Hapoalim Maintains Sell on Energy Conversion Devices (ENER)

Hapoalim is out with its report today on Energy Conversion Devices ENER, maintaining Sell. In a note to clients, Hapoalim writes, "While ENER reported a FY2Q11 EPS loss of ($0.16), x‐1x items EPS of ($0.26) was relatively in line with the Street at ($0.27). Most importantly, consistent with our thesis, continued operating losses drove a resurgence in negative operating cash flow of ($19.5m) as working capital sources ran dry.With guidance pointing to free cash flow losses of ($44m) in FY11, we continue to question ENER's ability to refinance $263m in debt, relying instead on massive shareholder dilution. We maintain our Sell Rating and $1.50 target." At the time of posting, shares of ENER were trading at $4.16, down 3.26% from Wednesday's close.