Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Why You Need To Be Bullish On Sunedison Inc (SUNE) And Bearish on SolarCity Corp (SCTY)?

SolarCity Corp (NASDAQ:SCTY) and Sunedison Inc (NYSE:SUNE) sunk in the market although the latter bounced back after the two alternative energy companies failed to meet Wall Street expectations on earnings. The two companies have not enjoyed the best of runs in the recent days according to Gordon Johnson, Senior Research analyst at Axiom, on suggestions that oil pricesmight have bottomed. During an interview on CNBC, Johnson, reiterated that Sunedison could spike in the market when it hosts its analyst day next week where it is expected to shed more light on its operations.

Solar Energy First Solar FSLR Solarcity SCTY 4

Sunedison Inc (NYSE:SUNE) rebounded in the market after dipping on posting an adjusted loss of 16 cents a share on adjusted revenues of $625.5 million. SolarCity Corp (NASDAQ:SCTY) on the other hand closed the day on the negative having posted an adjusted loss of $1.33 a share for the fourth quarter. Against analyst estimates of a loss of $1.27 a share.

“Sunedison is a well-run company, what is going to be of focus today I think is the backlog, megawatts produced, gross margins on the megawatts they actually sell, and what they do with respect to their pipeline. [..] We like this stock we’d still be long the stock into the earnings today and more importantly into the earnings next week,” said Mr. Johnson.

Sunedison according to Johnson maintains an advantage in the solar market place on the fact that it is the only solar stock on a yield co compared to the likes of SunPower Corporation (NASDAQ:SPWR) and First Solar, Inc. (NASDAQ:FSLR). Johnson does not expect the proposed Investment Tax Credit that seeks to accelerate the development of solar and other alternative energy sources to come into play anytime soon. An offering that would have had a major impact on solar stocks

The analyst remains bearish on SolarCity Corp (NASDAQ:SCTY) noting that competition could have a huge bearing on the stock going forward. Insider selling has also gone to show how the stock remains vulnerable at the back of a high Apex according to Johnson.

“My number one issue with SolarCity Corp (NASDAQ:SCTY) is competition is increasing. The way that they calculate net asset value I think is coming under scrutiny. I think there is more completion, and I think this earnings release  into the winter period where you are potentially not going to have many deployments installments I think it might have some disappointments there,” said Mr. Johnson.

I jsut made 84% in 4 daysI Just Made 84% in 4 Days By Blindly Following This Hedge Fund

I just made 84% in 4 days by blindly imitating a hedge fund’s stock pick. I will tell you how I pulled such a huge return in such a short time but let me first explain in this FREE REPORT why following hedge funds’ stock picks is one of the smartest things you can do as an investor. We launched our quarterly newsletter 2.5 years ago and not one subscriber has, since, said “I lost money by EXACTLY following your stock picks”. The reason is simple. You can beat index funds by creating a DREAM TEAM of hedge fund managers and investing in only their best ideas. I just made 84% in 4 days by blindly imitating one of these best ideas. CLICK HERE NOW for all the details.

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!