Jun. 4, 2014, 9:13 AM
May 29, 2014, 2:45 PM
- SunEdison has filed an S-1 for its anticipated solar project spinoff. The spinoff, named TerraForm Power, will own a slew of SunEdison-built solar projects, while generating revenue (and distributing related cash flows) from electricity sale agreements.
- The IPO might pave the way for other companies with sizable downstream project portfolios, such as First Solar (FSLR +2.8%), JinkoSolar (JKS +9.7%), and Trina (TSL +8.2%), to do spinoffs of their own. SunEdison's move comes after SolarCity (SCTY +5.6%) twice raised funds by selling solar asset-backed notes.
- Solar stocks are following SunEdison higher (TAN +2.6%). In addition to the aforementioned companies, gainers include SunPower (SPWR +2.5%), Yingli (YGE +3.5%), Canadian Solar (CSIQ +4.6%), and Daqo (DQ +1.5%).
May 28, 2014, 9:13 AM
- Xcel Energy (XEL) and SunPower (SPWR) have signed a power purchase agreement to construct a 50-megawatt solar photovoltaic power plant in Colorado's San Luis Valley.
- "This expansion of our renewable portfolio in Colorado is yet another example of how Xcel Energy brings solar power to its customers in the right way," declares CEO of Xcel Energy David Eves.
- The company predicts the plant will generate enough electricity for approximately 13,500 average Colorado homes. Xcel Energy currently supplies energy-related products and services to 3.5M customers. Construction is set to start in 2015, and to be fully operational by the end of 2016.
May 7, 2014, 11:45 AM
- A Q1 beat and full-year guidance hike aren't enough to keep First Solar (FSLR -4.2%) from selling off. Possibly contributing: In spite of the guidance hike, First Solar stated on its CC (transcript) Q2 EPS "will be significantly lower" than a $0.60 consensus due to project timings; that implies 2014 results will be very back-end loaded.
- Also: First Solar disclosed in its earnings slides (.pdf) its expected future systems/3rd-party module revenue is down $400M from the end of 2013 to $7.1B. However, expected module shipments are up by 100MW to 2.8GW, and potential booking opportunities have risen by 1.6GW to 12.2GW.
- Module production totaled 441MW, -1% Q/Q and +19% Y/Y. Conversion efficiency rose 10 bps Q/Q and 60 bps Y/Y to 13.5%, with lead-line efficiency rising 30 bps Q/Q and 120 bps Y/Y to 14.2%. The company is aiming for 18.1%-18.9% lead-line efficiency by 2017.
- Other solar stocks are also off (TAN -2.8%), as investors continue showing a take-no-prisoners attitude towards momentum stocks in general. Canadian Solar (CSIQ +0.3%) has given back the premarket gains it saw following a Q1 guidance hike.
- Notable decliners: SCTY -8.8%. SUNE -7%. TSL -5.5%. CSUN -5.1%. YGE -4.8%. SPWR -4.2%. DQ -5.7%.
Apr. 28, 2014, 2:15 PM
- The latest rout in once-high-flying tech momentum plays isn't leaving solar stocks unscathed. The Guggenheim Solar ETF (TAN -6.2%) is now down 21% from its March 7 high of $51.07.
- Likely adding fuel to the fire: Credit Suisse has slashed its 2014 Chinese solar installation forecast by 500MW to 11.5GW, soundly below the government's 14GW target (set in February). CS thinks policy changes related to utility-scale projects, feed-in tariff reimbursement, and distributed solar incentives are needed for investment to pick up.
- The firm adds JinkoSolar (JKS -10.8%), Trina (TSL -12.2%), and Canadian Solar (CSIQ -12.8%) are well-positioned to profit from downstream projects, given they have access to financing from the China Development Bank and other sources. On the other hand, it thinks Yingli (YGE -4.1%) and ReneSola (SOL -8.8%) are "less likely to access project capital due to their strained balance sheets." Yingli recently priced a stock offering expected to yield $83M in net proceeds.
- Other decliners: FSLR -5.3%. SCTY -7.1%. SUNE -6.8%. CSUN -9.8%. JASO -9.4%. DQ -9.3%. HSOL -5.9%. SPWR -5.1%.
Apr. 24, 2014, 4:36 PM
- Pandora (P) expects Q2 revenue of $213M-$218M and EPS of $0.00-$0.03, below a consensus of $219.3M and $0.05. Full-year guidance is for revenue of $880M-$900M (up $10M from prior guidance) and EPS of $0.14-$0.18 (up $0.01) vs. a consensus of $892.3M and $0.16. Shares -5% AH. (Q1 results, PR)
- SunPower (SPWR) expects Q2 revenue of $575M-$625M and EPS of $0.15-$0.35, largely below a consensus of $628.3M and $0.30. Full-year guidance is stronger: revenue of $2.5B-$2.65B and EPS of $1.10-$1.40 vs. a consensus of $2.55B and $1.21. Shares +0.9% AH. (Q1 results, PR)
- Broadcom (BRCM) expects Q2 revenue of $2B-$2.1B vs. a $2.07B consensus. Gross margin is expected to rise 75-175 bps Q/Q. Shares -0.2% AH. (Q1 results, PR)
Apr. 24, 2014, 4:08 PM| 2 Comments
Apr. 23, 2014, 9:17 AM
Apr. 23, 2014, 8:41 AM
- Google (GOOG) and SunPower (SPWR) team to provide financing for about $250M of residential solar lease projects, with Google committing up to $100M and SunPower about $150M.
- The program is expected to allow thousands more to finance solar power systems through SunPower, joining about 20K who already do so.
- Press release
- SPWR +8.6% premarket
Apr. 22, 2014, 3:56 PM
- Solar stocks are among the biggest winners (TAN +5.2%) on a good day for momentum stocks.
- SunEdison (SUNE +11.6%) is leading the pack after David Einhorn disclosed he has added to the position he started in Q4, and predicted lower solar costs and rising electricity prices should make the company a "winner." Einhorn is less crazy about tech momentum plays in general.
- Meanwhile, Canadian Solar is benefiting from a Japanese module deal, and SunPower (SPWR +6.5%) and SolarCity (SCTY +6.4%) are getting a lift from a Goldman note calling the companies its two best solar ideas. SunPower reports on Thursday.
- Other notable gainers: YGE +7.9%. DQ +9.2%. JKS +7.4%. SOL +6.8%. HSOL +6.7%. ENPH +6.2%. JASO +4.5%.
Apr. 16, 2014, 9:43 AM
- The U.S. Energy Department plans to offer up to $4B in loan guarantees to renewable energy projects, focusing on advanced electric grid technology and storage, biofuels that can be used in conventional vehicles, energy from waste products and energy efficiency improvements.
- Despite the high-profile collapse of Solyndra, the Obama administration believes most of its energy investments have done well, and it credits the program with strengthening the U.S. solar industry.
- Solar stocks: TAN, JASO, SPWR, TSL, FSLR, LDK, CSIQ, YGE, SOL, JKS, CSUN, SCTY, HSOL, EMKR, SUNE, DQ.
- Battery related names: PLUG, BLDP, CBAK, ZBB, ABAT, ULBI, ENS, HPJ.
- EV cars: TSLA.
Apr. 11, 2014, 3:20 PM
- Solar stocks are broadly lower following Yingli Green Energy's (YGE -5.1%) warning of greater than projected declines in PV module shipments in Q1.
- The first solar company to make a Q1 pre-announcement, YGE estimated Q1 shipments fell by the low 30s in percentage points from Q4, below prior company guidance of a mid-20s decrease, due to softness in China and project delays in Algeria.
- YGE reiterated its FY 2014 shipment guidance of 4.0-4.2 GW, and sees higher prices lifting Q1 margins more than expected.
- Although some of YGE's weaknesses may have been company-specific, the warning has cast a shadow over solar stocks today: SUNE -2.4%, FSLR -2.9%, TSL -2.6%, SCTY -1.7%, SPWR -5.2%, JKS -7.6%.
- ETFs: TAN, KWT
Apr. 10, 2014, 4:01 PM
- Following a two-day rebound, high-beta tech stocks are seeing monumental losses once again. The Nasdaq is closing with its biggest one-day decline since 2011 (eclipsing last week's 110-point drop).
- Security hardware/software providers were hard-hit following Imperva's (IMPV -43.8%) big warning: FEYE -11.6%. PANW -6.4%. PFPT -9.8%. FFIV -4.7%. KEYW -6.5%. FTNT -6.9%. QLYS -10.4%.
- Other high-beta enterprise names didn't fare much better: DATA -10%. SPLK -10.3%. WDAY -9.3%. VRNS -8%. EOPN -7.9%. FIO -7.6%. BLOX -9.7%.
- Major Internet decliners: P -11%. YELP -10.6%. ZNGA -6.6%. YY -7.3%. QIHU -9.3%. SINA -6.6%.
- Solar: TSL -10.4%. CSIQ -10.4%. JKS -7.9%. SPWR -7.4%. JASO -6.8%. CSUN -8.2%.
- 3D printing: DDD -10.6%. VJET -13.3%. ONVO -8.1%. XONE -7.7%. SSYS -6.7%.
Mar. 26, 2014, 11:49 AM
- SunPower (SPWR +2.2%) has sold over 70MW of solar cells to Chinese JV Huaxia for use in two projects within China's Inner Mongolia region.
- The projects, expected to be completed in 2015, make use of SunPower's C7 Tracker, which uses mirrors and a single-axis sunlight tracker to improve cell efficiency.
- The Chinese solar market has largely been dominated by local firms. SunPower calls the Huaxia deal "a first step" in its efforts to crack the market.
Mar. 24, 2014, 7:27 PM
- As U.S. corporations sit on $1T-plus in cash and with many facing organic growth challenges, Morgan Stanley lists 44 multi-billion dollar cap companies it thinks have a high likelihood of receiving at least one tender offer over the next 12 months.
- In the energy sector: NFX, SD, TDW.
- In materials: CLF, AXLL, UFS, RGLD.
- Consumer discretionary: SBGI, WEN, TPX, EAT, BYI, DWA, JCP, AEO.
- Consumer staples: INGR, HAIN, HSH, WWAV.
- Health care: CELG, ESRX, WLP, REGN, ALXN, AET, CI, BDX, CERN.
- Financial: NSM.
- Tech: BRCD, ONNN, TIBX, SPWR, IM, JBL, SUNE, TER, ARRS, NSR.
- Telecom: CCI, SBAC, LVLT, WIN, FTR.
Mar. 4, 2014, 1:34 PM
- With the help of positive earnings news from Trina and Yingli, volatile solar stocks are among the standouts (TAN +6%) on a very good day for equities.
- Trina posted mixed Q4 results, but also issued a strong 2014 module shipment forecast. Yingli has pre-announced its Q4 module shipments will be soundly above prior guidance.
- Notable gainers: SPWR +8.6%. JASO +8%. CSUN +6.6%. CSIQ +7.3%. STRI +10.1%. DQ +8.4%. SOL +6%.
- SunEdison (SUNE +10.5%) is taking off with the help of a Morgan Stanley upgrade. Analyst Timothy Radcliff thinks the commercial-scale solar market could grow to 129GW by 2018, with a rush of activity prior to a 2017 federal tax credit cut. He also thinks SunEdison's solar project yieldco spinoff could sport a $1.6B valuation within 12-18 months, and notes such instruments "trade at premium valuations given [their] predictable and growing cash flows."
- JinkoSolar (JKS +14.8%) is more than recouping yesterday's post-earnings losses with the help of positive commentary. Roth (Buy) notes Jinko's 2014 module guidance of 2.3GW-2.5GW beat the firm's 2.1GW estimate, and thinks Jinko is the first Chinese company to see its non-silicon processing costs drop below $0.40/watt.
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