Hey Putnid, any thoughts on the ENPH AH jump? Currently trading at $6.20, up 38%. Presumably on:
“Jun 12, 2018
Enphase Energy to Acquire SunPower’s Microinverter Business”
Thank you!
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Hello, utahchris!
So I was out bicycling and returned home after the Market closed and discovered that Enphase shares had exploded up some 30+%. Gotta say, that piqued my curiosity so I went searching for the reason. I found the reason:
https://finance.yahoo.com/news/enphase-energy-acquire-sunpow…
Here’s the thing: Back in 2014, Sunpower bought Solarbridge (the only other microinverter company at the time) for lotsa bucks. I forgot the price paid but it was waaaay more than Enphase now paid to acquire the assets. Not a big surprise because the Solarbridge technology wasn’t all that awe-inspiring. I was rather impressed by this acquisition. Sunpower is a big player in the panel market. Not that long ago, Sunpower began selling AC modules (panel + microinverter) and sales SKYROCKETED (don’t ask me for the numbers, I’m a senior citizen for chrissakes). At any rate, both Enphase and Sunpower knew AC modules were the future. No big surprise that Sunpower wanted Enphase to deliver the microinverters. Enphase, in return, would get a big boost in its IP portfolio and now has a partner that will sell a whole lotta AC modules. Looks like a win-win for both companies (hence the 30% price jump).
I’ve liked the Enphase story for a long time. I’m liking it even more this evening. Tomorrow, if share prices stay relatively the same as where they are right now, I will make another coupla years of living expenses. I consider that a good thing.
I now believe that Enpase could climb to $8.00/share this year…but that’s just the start…there’s more good news coming.
You’re welcome!
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I was just about to post something, too, since I bought some ENPH recently, the previous time it was around $4.50. The solar industry in general has had a lot of ups and downs from headlines - new U.S. tariffs, even newer Chinese dropping of subsidies. And the latest news you just mentioned - Enphase buying SunPower’s micro-inverter business.
I was about to put in an order to buy more ENPH when the market opens tomorrow, but then I saw the after-hours news.
Here’s a recent Fool article on the industry:
https://www.fool.com/investing/2018/06/05/the-rout-of-chines…
I wonder if it makes sense to buy some Solar Edge (SEDG) on its recent dip from the Chinese news.
Hello Ed -
Yeppers, the entire solar sector took a big hit when China announced big changes in its solar program on June 4. The panel makers took the biggest hits, but every player in the sector got hit (Enphase and Solar Edge included…even though ENPH derives NO revenues in China…I don’t know about SEDG). I took it as an opportunity to buy more ENPH shares. I had sold a bunch at $5.50+ (gotta pay those bills dontcha know). Bought all those shares back (and more) when the share price fell back to the $4.50 range. My investment thesis was simple:
China curbs spending on utility-scale solar. Lotsa Chinese panel makers are gonna end up with surplus panels. What do Chinese companies do when they overproduce? The sell their products cheap all over the world. What does that mean here in the good ole USofA? Probably means that solar panels will come down in price. They might even come down more than the 30% tariff the administration imposed on solar panels. If that happens, there will be no drag at all on the residential rooftop solar market here. If business here doesn’t shrink, then Enphase will blossom (particularly given its partnerships with an assortment of panel-makers). That’s why I kept buying as Enphase shares dropped in recent weeks. Yep, shares dropped by 20% since the China policy change. That was one fine sale if you ask me. Even with the price plunge, Enphase is still up 400% over 200 days and 87% year to date. Meanwhile, I loaded up the truck and look forward to tomorrow and tomorrow and tomorrow…
Would I buy more SEDG (instead of ENPH)? Can’t say I’m interested.
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