The fed will rush to raise on second half once it becomes clear the economy is more than strong. More likely, by October data will come in to reflect this. Short gold, don't get stuck with commodities. Neither oil. Go long USD on dips and go long small caps russell 2000. SPX will stall by year end.
There is an article today in Bloomberg on how he is financing issues within his companies.
He owns large chunks of three: Tesla, Solar City and SpaceX. The latter has won government contracts. It appears he has SolarCity issuing "solar bonds" that SpaceX has been acquiring. Therefore, transferring hundreds of millions helping finance their operations. SpaceX has been buying about 70% of issuance. He has also used Tesla stock and SolarCity stock as collateral for personal loans.
This type of financing is not only highly risky for the margin calls -there has been already a congressman trying issue some law to stop the "solar bonds" arguing he is milking the government coffers- but also speaks of his character. I may say, shady character. You don't borrow from Peter to pay Paul having Joan as collateral if the businesses you are running have a shot at making it.
Unfortunately, this gives Musk and therefore SolarCity some edge. But the day will come that market forces will instill some discipline too. Just like they did with Valeant.
I do not think any of the above matters.
And as oil prices continues to rise this will determine the trade for all solars as governments will find it imperative to push alternatives.
You are clouding the issue.
A 32% increase in MW shipments sequentially is a big deal. Guidance for next quarter. No matter how you look at this number it proves their strategy works.
Forget about the dollar cost for a few quarters. Or even, many.
Growing market share aggressively is what it takes. Gross margins and earnings will come later, in spades. In an extremely competitive market you initially play to kill competitors no matter how. Just like amazon.
Read my lips:
Great guidance. Specially in MW shipments.
The rest will follow.
It took years for amazon playing with razor thin margins and losses quarter after quarter.
You must compare 1Q with 2Q sequentially as they come out of the hole.
Next set of numbers will prove you wrong. Except that they will maintain a similar level of losses by design. How many times they said they are after market share through price manipulation? What part of that strategy -that is now working- you don't get?
We needed that guidance as proof. And it was there.
So for 2 quarters they go into debt, as it was said in the c/c. No dilution to equity. A little more costly. But within 6 months they expect to get that run rate noticeably down with much higher sales and cost containment. capicci?
Oh, I agree with you. They do need someone who can run the company better. All I am saying is that this is worth more than $2.
Their main issue is their refusal to cut expenses, mainly R&D. This doesn't make sense at this point. Unless they are diverting money from profits into personal endeavors by which only upper management benefits. Read, stealing.
crashing like gopro. Gordon Johnson issued a sell rating a few days ago. Target for scty is $7. Musk pumpers rejoice. I imagine sedg is crashing in sympathy. Chanos is full blown short Elon Musk.
Where does that leave enph?
Look for Gordon Johnson (Axiom Research) re solar city. Just published. ZeroHedge has the print.
The meat of the story is that while the solar industry is relatively stable and robust in the US, scty isn't really a solar company but a finance outfit and as such faces much more hurdles than a regular solar rooftop company and is greatly overvalued.
GJ has been very accurate with SUNE. He predicts $7 for scty by years end and an earnings miss on coming call. Perhaps enph might find some solace after all their struggle.
Revenue for sedg flat sequentially. Upper guidance estimate for next Q is 7% or again flat at the bottom of the range. Enph revenue guidance 23% higher and 30+% on MW shipped. Enph looks good here.
Liked it at $50.
Loved it at $30.
Adored it at $20.
Did swear by it at $17 and they will mortgage their mothers at $7.
You know who you are.
Don't worry JoeBig. There is nothing wrong with crashing after earnings. It's just a great buying opportunity. lol.
Buy enph on its way up instead.
Meanwhile, it won't hurt to keep the lid on SGA and RD. Which the company clearly has a problem with.
The central issue is: are they diverting earnings that belong to shareholders to a black box that we know nothing about or can be conveniently morphed?
More than 95% of public companies have management teams dedicated to screw their own shareholders via special vehicles, stock options and other ingenuous schemes, ie. research and development.
This is not Buffett's times anymore. In 1929 the 1% were the directors of companies. Now, that 1% are upper management.
Never underestimate bad management.
Those 100k blocks of shares they purchased were wagers by some hedge fund outfit, not real buys from the CEO or CFO. This is how it works. Someone invested in the company throws that "carrot" in front of them by enticing them to "do better".
If numbers grow and the stock appreciates they get all the value above cost while the outfit gets its cost back after the block is sold into the future.
The second block purchased on behalf of the ceo/cfo was a second -misguided- attempt at the carrot in front of them.
I'd say if next quarter numbers won't get substantially better hedgie will dump the 200k shares can call it quits. Not even this call option can make this management deliver!!