Market Analyst Value Line Issues Strong Warnings Against Major Solar Companies …Only For “Most Risk-Tolerant Of Speculators”!

A reader passed on some interesting investment advice.

Market analyst Value Line,the most trusted name in investment research” has issued warnings against investing in two major US solar energy companies: SOLARCITY CORP and SUNEDISON CORP.

234 million 3rd quarter loss

Value Line informs market participants that Solar City reported “a much great-than-expected net loss” in the third quarter: $234 million, thus “shocked market participants”. Value Line hints that the company is misleading the public by stressing the company’s “impressive operational statistics” adding that the company has had an “inability to translate the gains into anything coming close to a profit“. Value Line also reports of a huge increase in company debt.

Despite the projected growth in sales of solar modules, Value Line does not see any profit for Solar City. Value Line’s advice:

In sum, only the most risk-tolerant of speculators should consider this equity.”

Getting hammered…

The advice is not any better when it comes to renewable energy giant Sunedison, originally the wafer-making arm of Monsanto, now a global leader of solar and wind power. Value Line informs that the company “used loads of debt to buy alternative power entities” and that the “company’s timing could not have been worse” in a sector that “has been getting hammered“.

Value Line

Here Value Line offers the same advice that “all but the most speculative investors to steer clear of this volatile equity“.

Largest bankruptcy in Spanish history

Meanwhile the London-based Global Warming Policy Foundations reports here how Spain’s renewable energy firm “Abengoa has announced the start of insolvency proceedings. International banks’ total exposure to a full Abengoa bankruptcy stands at about $21.4 billion, meaning the company’s downfall would end up being the largest bankruptcy in Spanish history.”

Ironically world leaders are meeting in Paris with the aim of steering people into investing in this junk-grade equity. A wonderful way to destroy wealth and people’s savings.

35 responses to “Market Analyst Value Line Issues Strong Warnings Against Major Solar Companies …Only For “Most Risk-Tolerant Of Speculators”!”

  1. Windsong

    Pierre, do you have a direct link to the VL article? I tried to search for the article on their site and came up empty. A generic search on Google only provides your post above. Thanks.

  2. mwhite
  3. robk

    There’s got to be a big risk associated with an industry that relies on subsdies from tax payers by governments wanting to artificially reprogram markets in a setting where the conventional energy is in over supply and economies are struggling, even without such negative interference.

  4. DirkH

    First hint at how the warmunist warlords want to proceed at Paris:
    -Year after year increase destruction of economic activity and totalitarian power grab until pseudoscientific scare is handled (i.e. never)
    http://www.n24.de/n24/Nachrichten/Politik/d/7691882/klimaaktivisten-stoppen-sonderzug-mit-ministerin-hendricks.html
    After opening floodgates to Muslim immigration to 10.000 a day in Germany and continuing to press Muslims into the country at this speed, force them on the municipalities and enforce their wellbeing, Merkel is NOT finished! She is all gung ho for warmunist madness! She is a destruction machine! Is she an American agent? Is she a Russian agent? Whatever she is, German she ain’t!

  5. Mindert Eiting

    ‘largest bankruptcy in Spanish history’. There is one comfort. Already centuries ago bankrupt firms had to deposit all their written correspondence at some court. For historians these sources are of tremendous value.

  6. DirkH

    As usual, God sends a greeting card to the warmunists in Paris.
    This time, a snow storm about to wreck the UK.
    http://www.dailymail.co.uk/news/article-3337216/Stay-indoors-Britain-braced-19-INCHES-snow-amid-warnings-gale-force-winds-nearly-foot-rain-weekend.html

    1. DirkH

      I assume warmunists explain this with unseasonal heat over the arctics in the summer of 2012 which has now finally made its way spiralling around the planet hitting the UK, having turned into extreme cold in the meantime, caused by humans.

      1. DirkH

        Computers say.

  7. DirkH

    SunEdison chart at NYSE.
    https://www.comdirect.de/inf/aktien/detail/uebersicht.html?ID_NOTATION=82074477
    Looks like a Cumulus Effect power drop-off.

  8. yonason

    Investment in “renewables” is perfectly safe. Just ask the Google engineers.
    http://www.theregister.co.uk/2014/11/21/renewable_energy_simply_wont_work_google_renewables_engineers/

    …or maybe not?

    1. DirkH

      Sounds like the wind turbines are the legacy of the current ruling elite (and will warn coming generations forever of the perils of soviet style central planning after our societies have collapsed).

      1. yonason

        Yes. Now if only voters will remember who’s responsible, and vote accordingly (assuming that there’s anyone else worth voting for, of course).

  9. John F. Hultquist

    Chiefio (E. M. Smith) has 2 interesting posts:
    1. Screw Them All (about muslims); and
    2. Maurice Strong has Died (self explanatory).

  10. StewGreen

    ..Hangon- how are friends over at Hanergy the world’s biggest failing solar corp ?
    Still not up ..and Ikea has pulled out of selling Hanergy panels.
    Jinzhou Bank which heavily lent to Hanergy is going to try to float on Nov30th …There maybe a shortage of buyers

    What about SunEdison ?..fallen by 85% this year Look at the graph down from $31 to $3.20

    NRG down from $31 last year to $11.60 now

    One time these corps solar were all charged up , now they are having difficulty recharging

  11. sod

    Well Paris can deliver the secure environment in which those renewables companies can prosper again.

    So how is the coal industry doing, with even Britain declaring to phase out coal plants?

    http://www.bbc.com/news/business-34851718

    Investment opportunities everywhere!

    1. yonason

      If by “prosper” you mean like the businessman who, while he lost a little on every sale, expected to make it up in volume, than yeah, they’ll certainly “prosper,” all right.

    2. David Johnson

      As long as it’s a good investment opportunity for you and your ilk I see you you are still pedalling your “screw the poor with expensive energy” strategy?

  12. DirkH

    Global Warming is Asteroid impact in slow motion, says top warmunist Schellnhuber, is responsible for current Turbo Islamisation of Germany, but can be coped with by eating less meat.
    http://www.welt.de/wissenschaft/article149395039/Klimawandel-ist-Asteroideneinschlag-in-Zeitlupe.html

    One Schellnhuber = the unit of having completely lost it.

  13. John F. Hultquist

    DirkH says: One Schellnhuber = the unit of having completely lost it.

    That’s funny, and a great comment.
    What’s the scale and how far along it is “sod?”
    [O/T: Google Earth allows length to be measured in “smoots” – named after Oliver Smoot’s height.]

    And while here, I’ll fix sod’s comment; written as:
    Well Paris can deliver the secure environment in which those renewables companies can prosper again.

    The fix:
    Well, Paris will not deliver the Left’s utopian totalitarian Hell in which those renewables companies can suck subsidies from taxpayers and further impoverish the world’s poor.

  14. sod

    There is some real stuff to worry about:

    Germany is losing its position in the car market, because we completely fail in the electric car segment, which will be the future.

    http://www.n-tv.de/wirtschaft/China-haengt-Deutschland-elektrisch-ab-article16457941.html

    Yes, that must be those chinese “left-wingers”, looking for a reason to raise taxes. Makes a lot of sense!

    1. DirkH

      Why would anyone want an electric car in the country with the highest electricity prices in the world?
      I pay 3 Eurocents per km fuel cost with my LPG Kübelwagen (VW Polo).
      At say 20 kWh per 100km for an electric car, fuel cost at 25 Eurocents per kWh is 5 Eurocents per km – plus, you get a tiny range.
      Electric cars are expensive luxury toys for people who don’t need a car.

      1. sod

        “I pay 3 Eurocents per km fuel cost with my LPG Kübelwagen (VW Polo).
        At say 20 kWh per 100km for an electric car, fuel cost at 25 Eurocents per kWh is 5 Eurocents per km – plus, you get a tiny range.”

        On the web, you can find real life use of 6.25 km per 1 kwh or about 16 kwh per 100km for a Tesla S.

        So you are comparing a VW Polo at optimistic use (3 liters diesel at 1€ per liter, both numbers are optimistic) to a sportscar?

        And you are using subsidised Diesel to electricity prices which include the EEG part of alternative power?

        1. DirkH

          “And you are using subsidised Diesel to electricity prices which include the EEG part of alternative power?”

          sod, you don’t even know what LPG is? I know you don’t know what a wind turbine is, but not knowing fossil fuels. I thought Green warmunists were EXPERTS on fossil fuels.

          I guess you don’t use a car because you sit in a wheelchair in a nursery home in the Black Forest.

          1. sod

            “sod, you don’t even know what LPG is?”

            Sorry, i missed that one.

        2. DirkH

          As to the comparison, I used 20 kWh per 100 km because the Chevy Volt is advertised as using 19 kWh per 100 km; very graciously I assume that that is what it really consumes; and that that is a typical consumption for electric commuter cars.

          Whether Musk claims his monster 3 tonners consume 1 or 2 kWh is of no interest to me, as I discount that as wild eyed dreaming; and give more credence to the carmakers at GM who have been building cars forever and know where they end up if making false promises.

          1. sod

            “As to the comparison, I used 20 kWh per 100 km because the Chevy Volt is advertised as using 19 kWh per 100 km;”

            The Volt is a plug in hybrid, without a range problem.

            So your comparison is between the lowest fuel consumption you can get (LPG) and a hybrid?

            And the LPG can barely win that one? Well, that is good news for the fossile fuel industry, perhaps they can hang on…

          2. DirkH

            “The Volt is a plug in hybrid, without a range problem. ”

            Your way of arguing is, politely expressed, erratic.
            The Volt can run on batteries alone and is therefore just as good a benchmark as any other electric commuter car.

          3. sod

            “The Volt can run on batteries alone and is therefore just as good a benchmark as any other electric commuter car.”

            No, it is not. Either you use a all-electric vehicle then you get better usage numbers or you use a hybrid, but then range is not a problem.

          4. DirkH

            sod 2. December 2015 at 11:03 AM | Permalink
            ““The Volt can run on batteries alone and is therefore just as good a benchmark as any other electric commuter car.”
            No, it is not. Either you use a all-electric vehicle then you get better usage numbers ”

            And those numbers are? The 16 KWh for the Tesla S? You were outraged that I compare a VW Polo to an electric hedge fund billionaire toy.
            Yet that was the example you gave. 16% better than my number for the Volt.
            Ok, that gives us 16*26 Eurocents per 100km, that’s 4.16 cents per km. I consume 3 cents of LPG per km. I beat the Tesla S bei 28% still.

            You say, that’s just barely beating it? No, that’s winning by a landslide. Hey, the hedge fund billionaires can afford running an expensive toy, I have no probs with that.

            I just don’t have the time to wait all day each time I need a refill. I’m busy.

        3. DirkH

          And, Green Warmunist: Diesel is not SUBSIDIZED. It is TAXED. With the so called MINERAL OIL TAX. Plus “Biotax”. Plus VAT.

          Is there anything you actually KNOW? Did they teach you that you can spout any lie you want and people will believe you?

          Thing is, No, lies actually do not build trust in your arguments.

    2. DirkH

      Obviously, sod, the socialist SPD-CDU government of Germany wants us comrades to drive LPG cars, not electric cars – as the wise comrades of the Central Comittee have made electricity far more expensive than fossil fuels.

  15. DennisA

    Stern is, maybe now was, a member of the international advisory board of Abengoa. Also a Board member is Professor Mario Molina, IPCC author who shared the Nobel Prize for Chemistry in 1995 for his work in the 70’s on CFCs and the (alleged) depletion of the ozone layer. He is a member of WWF-México’s Senior Advisory Council and as Professor of Chemistry and Biochemistry at the University of California at San Diego, he was a member of President Obama’s transition team.

    Professor Molina also happens to be a member of the Earth League with Lord Stern of the Grantham Institute, John Schellnhuber Potsdam Director and climate advisor to the Pope, Jennifer Morgan of World Resources Institute, former head of WWF political campaigns on climate, a member of Schellnhuber’s Potsdam Scientific Advisory Board, as was again Lord Stern until last year.

    Other IPCC authors in the Earth League are Schellnhuber’s deputy at Potsdam, Ottmar Edenhofer, Nebosja Nakicenovic, Sir Brian Hoskins, Director of Imperial College Grantham Institute, Professor Ramanathan of the Scripps Institute and Pamela Matson at Stanford, WWF board member and board member at John Podesta’s ClimateWorks Foundation.

    Back to Abengoa’s advisory board, we have Kemal Dervis of the Brookings Institute, formerly the head of the United Nations Development Programme, the UN’s global development network, from August 2005 to 28 February 2009. He was also the Chair of the United Nations Development Group, a committee consisting of the heads of all UN funds, programmes and departments working on development issues at the country level. Another member Bill Richardson, was Energy Secretary to Bill Clinton.

    A network analysis of the whole AGW crew would fill several football pitches.

  16. Mervyn

    The definition of the green renewable energy industry dream may very well end up being reduced to one word, and one word only – ABENGOA.

  17. StewGreen

    Piers, more solar news What is a yieldco? How’s it killing Wall Street?

    At an event in October last year, David Einhorn of Greenlight Capital called SunEdison “a well‐run, financially savvy company, benefiting from an open-ended growth opportunity trading at a bargain price.”
    He priced the stock at $32 a share. It’s now trading at about $3

    Similarf report aty the FT but behind a premium paywall, not viewable from my free account.

    News of destraught Hanergy seems to highlight trickery. To get cash it’s selling a stake in a profitable hydropower BUT on condition the buyer must also buy 15% of Hanergy Film Power..#2 Jinzhou Bank listing was in trouble due to its ties to Hanergy debts, but at the last movement their was a “Bejing boost” where someone like the gov stepped in to support the share price.