A reader passed on some interesting investment advice.
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.”
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“.
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.