Sunrun: Stuck In Earth's Gravity

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About: Sunrun Inc. (RUN), Includes: NOVA, SPWR, VSLR
by: Joseph Kowaleski
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Joseph Kowaleski
Growth at reasonable price
Summary

My valuation-based bearish thesis is playing out.

Given long-term uncertainty shares are not worth much more than net earning assets; dilution has decreased shareholder value since June.

Sunrun is the leader in solar installations in the United States, but the competitive nature of the business makes competitive advantage difficult to establish.

The solar industry faces numerous headwinds and challenges; the picture is too murky for long term investors.

Should shares decline towards $9.36, a 20% discount on net earning assets, consider Sunrun as a value trade.

Thesis

Sunrun Inc. (RUN) was a position I held for a brief period of time in mid-2018, as chronicled. Sunrun is no longer in deep value territory, net earning assets have slowly