Friday, October 21, 2016

SolarCity Ain't So So Bad

Ticker Symbol: SCTY

I have always been a fan of renewable energy. It's my belief that at some point in the future, whether it's in my lifetime or my kids, as a world we are going to have to start to rely heavily on renewable, cleaner energy. Solar and wind are a couple of my favorites. I have recently been looking into SolarCity Corp because a number of factors. So, let's start there.

ONE:  Elon Musk is the magic man. JK, I don't really like him that much. I respect him and the company and legacy he has already built, but his

proposed purchase of SolarCity was kind of an iffy decision.  For Musk, it's all part of his "master plan." Other people, me included, think it's a waste of Teslas funds that could have been put to better use in their vehicles. Regardless of what I think, being under the umbrella of Tesla would great for marketing their name. (Tesla shareholders vote on the merger November 17).

TWO: Hillary Clinton.  She has SAID that she will do a lot for renewable energy research and SolarCity is already one of the most well known and largest in the market. Actually 2nd in market cap behind First Solar (FSLR). The companies who are already big will most likely receive a subsidy of sorts allowing them to research more heavily and save their cash flows.

THREE:  SolarCity Corp is hovering above all time lows. I don't want to support the greater fools theory when I say that. Just because it has gone up in the past doesn't mean it will go up in the future. But I am going to go back to some technical analysis.

Once again if we look at the MACD and the 9 day moving average we can see the black line [MACD] just crossed over the moving average. It's hard to see but if you look closely it has. The stochastic indicators show a similar story. However, the black line is only touching the red. It could bounce off and rebound, but it could come right back down. It's in a very interesting place technically and is one that I am watching very closely.

FOUR:  SolarCity just made a deal with Airbnb that SCTY will give up to $1,000 to owners of homes with solar panels. They partnered up with one of the fastest growing peer to peer businesses in the world to create an incentive to rely more heavily on renewable energy. I love it!

Alright, that's all I got for ya. Again, if you made it this far I'd appreciate a comment on what you thought. If you agree or disagree.

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