Solar panel maker SunPower seems to stuck around the 2CentView FV of $33 (tweeted on Feb 24). Investors are waiting for more news on the YieldCo and it’s partnership with $FSLR.
For patient and yield investors, it makes sense to wait – the SpinOff may realise more upside and the resulting YieldCo may be worth holding if you want an good income.
For Impatient investors, if you ar considering selling out of $SPWR, $CSIQ (Canadian Solar) would be a good – but riskier – bet – it has had a good run recently up from $35 to $39 – but still looks cheap – 2CentView FV = $60 on $CSIQ.
2CentView has a core position in $SPWR.
Last tweeted this name in Mid December 2013 along with $SPWR as being cheap. 2CentView opted to go for $SPWR rather than $CSIQ.
With $SPWR (SunPower) moving to a yield co, the upside for the stock seems to have disappeared.If you would rather not wait for the yield Co spin off, and want to take some risk, it maybe worth a switch to Canadian Solar. Bear in mind although it is canadian, all the manufacturing is done in China…
$CSIQ is a volatile name name, but FV=$60, there is room to make money with a smaller position with wide stops:
Suggested trade: Buy here at $35, Target $55 Stop $24.
2CentView does not plan to switch from $SPWR to $CSIQ at this time.
Tweeted 3 solar names back in Mid December 2013 as being cheap and worth taking a posiiton if you believe the Solar Industry will grow over the next 5 years.
It is crazy that Solar stocks and Oil prices are so highly correlated – Solar produces electricity???
Icahn says on his twitter he makes make money from the markets ‘natural stupidity’ – like when $YHOO was trading at $33 when it was worth $50 – is this another example of natural stupidity where an Industry which has very little to do with oil trades with oil? are Electricity prices going to become cheaper because of lower oil prices?
All 3 stocks have done well since mid december and yesterday’s announced that $SPWR and $FSLR are to create a YieldCo.
A yieldCo is like a utility stock – it should have a reliable cashflow stream the earnings of which are distributed to shareholders – the Apple Solar Farm announced recently could go into in the YieldCo. The YieldCo would be spun off as a separate company some time this year.
$SPWR FV=30 and $FSLR =48 Before this announcement – not sure exactly what the yieldCo SpinOff would be worth – but assume 10% so FV=$33 and $53 respectively.
If you got in at $24 on $SPWR trade, then consider taking some profit around here – there is still risk the yieldCo Formation may fall apart. Keep a core position.
2CentView has a trading and core position in $SPWR opened at $24 mid December 2014, and looking to take some profit around here. Will keep a core position.
The rapid fall in oil has seen an amazing collapse in Solar stocks – 2 particularly – $SPWR (SunPower) and $CSIQ (Canadian Solar).
Both these stocks were trading around $40 in September – they are now $23!
2CentView is that the solar industry will not slow down in growth due to lower oil prices – there is still a need to reduce electricity bills and for cleaner energy to stop global warming killing wild life and polar bears in the Artic.
Was stopped out in $FSLR earlier in the year – but the current levels are very attractive if you believe the Solar industry – which is also making technological progress in making fuel cells produce more energy from the sun with the same or lower costs – will continue to move forward regardless of what happens to oil prices.
$SPWR = 30
$CSIQ = 45
$FSLR = 48
2CentView pick is $SPWR as they sell to retail as well as Industry, and judging by the growth of Solar City there is a growing market.
The Stocks are STILL VERY Risky though with oil prices falling – so manage risk and set 25% downside stops – look to take profit at 50% up.