A short while ago, I posted an upbeat summary of UBNT’s earnings report. Yeah, I’m still smiling…but I forgot to mention the shares were up 18+% in the after hours. My smile just grew larger.
But, hey, my friends, there’s the yin-yang of investing that must be respected. Here’s a well-detailed, well-reasoned Seeking Alpha article that I suggest everyone invested in the solar sector contemplate:
It’s a long article, fairly well thought through (in my opinion), and detailed enough such that I won’t try to summarize.
I’ll simply state that the author examined California’s revised rules regarding feed-in tariffs and time-of-use programmatic changes and concluded that the PPA-pushers are hurtling towards certain death.
Now, I’m not nearly as negative as the author. After all, he focused exclusively on Nevada and California, whereas I tend to contemplate the entire planet but, nevertheless, he raises valid points.
I hope that everyone who has any money invested in the solar sector reads the article and contemplates it soberly. Those of you with dollars invested in SolarCity, Vivint or Sunrun should really think long and hard about the changes coming in the solar/utilities arena. Even those of us invested in the ancillary industries (e.g., the panel makers and the inverter manufacturers) should contemplate the headwinds blowing our way.
Having said all that, I’m still bullish on the sector and still believe the industry will grow by 30-40% in the coming year. However, I do expect stormy seas.
I’ve no interest in the PPA-pushers. This article simply provides another cogent reason why.