{"id":1134414,"date":"2019-08-22T10:23:51","date_gmt":"2019-08-22T15:23:51","guid":{"rendered":"http:\/\/oilandgas-investments.com\/?p=116"},"modified":"2019-08-22T10:23:51","modified_gmt":"2019-08-22T15:23:51","slug":"solar-stocks-are-hot","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1134414","title":{"rendered":"SOLAR STOCKS ARE HOT!!"},"content":{"rendered":"

Solar stocks are flying \u2013 especially those that make & sell inverters, like Enphase (ENPH-NASD) and SolarEdge (SEDG-NASD).<\/strong><\/span><\/p>\n

Quick refresher: inverters\u00a0 are devices that try convert power from DC (solar panels) to AC (what your home uses).\u00a0 There are lots of inverters out there, with slightly different technologies, but all are meant to maximize the AC power out of your DC photovoltaic panels.<\/p>\n

This market has just gone CRAZY this year \u2013 out of the blue. It\u2019s a grassroots demand scenario that has COMPLETELY taken the Market by surprise.\u00a0 <\/em><\/p>\n

How do I know this?<\/p>\n

Look at the gaps in the stock charts<\/strong> of both ENPH and SEDG \u2013\u00a0the Market had not priced anywhere close to the kind of growth<\/span><\/em> <\/em>these two inverter market leaders are going through right now.<\/p>\n

\u00a0\"1\"<\/a><\/p>\n

\"2\"<\/a><\/p>\n

This is happening despite trade wars, despite Chinese tariffs (SEDG is opening a 2nd<\/sup> plant in Vietnam now; ENPH is opening one in Mexico).<\/p>\n

Sell side research I\u2019m reading says component parts pricing has come down A LOT\u2026 making solar much more economic.\u00a0 There does appear to be areas where solar can compete against greenfield coal baseload power or against natgas peaker plants (expensive back-up facilities that are only used during peak power times during the day).<\/p>\n

SEDG CEO Guy Sella said on the Q2 conf call that nobody buys solar for subsidies anymore.\u00a0 I would argue that’s not quite true, as analysts are suggesting the end of subsidies is now actually pulling forward demand.<\/p>\n

But the volume of units sold and the stock charts say he is mostly right.<\/p>\n

SEDG is a big story on both<\/span> sides of the Atlantic, in both Europe and the USA \u2013 Europe was 48% of business and the USA was 41%.\u00a0 The ROW \u2013 Rest of World \u2013 was 11%.<\/p>\n

The Market is right to love this story \u2013 SEDG \u2013 as the growth is phenomenal, it\u2019s organic, it\u2019s not just about the USA, it\u2019s both residential and commercial\u2026 and the balance sheet is pristine.<\/p>\n

AND\u2026 the Market is excited about new products for utility sized solar and energy storage\u2026<\/p>\n

AND\u2026 management keeps showing innovations not only in new products (mgmt. has made several M&A moves recently, vertically integrating their business and using various technologies together in new ways) but also reducing costs on existing products<\/p>\n

AND\u2026 there appears to be room for everyone.\u00a0 Competitor Enphase announced 100% increase in YoY revenues, and it had the same kind of jump recently.<\/p>\n

Here are some of the quick financial highlights from SEDG Q2:<\/p>\n