Efficiency is huge when it comes to margin over thousand of panels. And with residential rooftop (with limited space) growing faster than commercial...efficiency is even more important. Meanwhile, CSIQ has not even entered the rooftop market as yet as far as i have hear.
Getting new investors into SPWR.....who see it as a great stable long term blue chip type stock.
There are 69 ways to argue it....but one way is that when you look at all the good news coming out for almost all solars...and then you look at SCTY and their valuation with no profits...for those who take a good look you see that SPWR is in a great position over the next five years. Many investors are looking at a 5-10 times frame. Why not just get into SPWR and not miss out. They are not here to stare at their screen. They just want the best solar play. SPWR is truly another double over the next year. Mark my words.
Chasin...I appreciate your warnings....you help me find the balance. I have had some crazy crazy swings. I am in good shape at the moment. It is very high market....but I don't see it crashing down if the economy keeps growing. Give it a couple years. Will I stay concentrated in SPWR and GTAT? Today I am. I am looking for another 15% going into earnings. Hope I don't screw myself in the next month.
Volume last week got us to $40.99. It does not take volume to wallow around within a range that was established on Volume. If we want to move over $42 and stay there it takes volume....if SPWR sneaks up there on low volume.....sell.
One way is simply growth relative to PE. If SPWR grew 27% and the share price stayed the same....then the PE would become 1. When you compare all the different growth stocks...it is possible to come up with reasonable valuations. SPWR is expensive relative to some solars...and very cheap relative to growth stocks in general. In January the PE was 56. So if the market decides to value SPWR at that PE again....then the share price can easily be $80
As long as solar can continue toward and beyond grid parity...making it the lowest cost of energy available...then SPWR will continue to rise even when the economy goes through its next rough patch. In terms of this market reaching a peak....perhaps...but markets don't fall because they are high...they fall because of economic crisis. If the economy continues to grow...the market should not fall...it should at the very least flatten out, while high growth stocks continue to move up. When the next 10% correction does occur, it may be from a DOW of 25,000. SPWR might correct 20%....but from a share price of $80. Nobody knows exactly, but we do know that SPWR is not overly priced currently relative to its near term growth....and it is certainly underpriced relative to its long term growth.
I got GTAT at $15.29....was way up....kept loading up like an idiot until I was margined out with 18000 shares...nearly washed out completely...but managed to hold onto 8000 shares...and now I am doing ok...but still not back to where i was back in Febuary.
As long as he keeps buying at $40.01 it ok though.
I once one a blue ribbon for a little card board box with a tray of ice and a light bulb showing the water cycle. Just saying!