SolarEdge Technologies (SEDG): Insider Selling, Rival Actions Cool Off This Stock
by Sonya Colberg, Senior Editor, 6/23/2016 11:48:38 AM
Just beneath investors' radar, SolarEdge Technologies (SEDG) is fighting a feud worthy of the infamous Hatfields and McCoys. There will be no "hog trial" this time around but today's revenge-fueled struggle would make those rival clans proud.
(Clan leaders William "Devil Anse" Hatfield, Randolph "Rand'l" McCoy. Source: tourpikecounty)
Indeed, SolarEdge's chief rival, Enphase Energy, is heating up the feud with the launch of a potential game-changer. One solar contractor predicts Enphase's new battery backup system for homes will make SolarEdge technology virtually obsolete.
And risks just keep piling up against this solar power systems inverter. (Inverters change solar panels' DC electricity into AC or alternative current for use by in-home appliances and community electricity grids).
When the gunsmoke clears this time, a most unfortunate loser will stumble out ... current SolarEdge stockholders.
Investors may find other viewpoints on Israel-based SolarEdge here. Meanwhile, TheStreetSweeper presents a brief executive summary, followed by details on the top reasons we dislike this stock.
Executive bullet points:
*Extreme insider selling exceeding $25 million. What do they know that the market has missed?
*Singularly focused rival Enphase pressures SolarEdge with new technology and severe, continuing price cuts.
*SolarEdge has been forced to cut prices. And its new rollout has been delayed by as much as half a year.
*Chinese vendors are crowding into the commercial side of SolarEdge’s business with bargain rate products, likely forcing more price cuts.
*1. Smart Insiders: Bid SolarEdge Stock Goodbye
Insiders have been unloading their company stock. Year-to-date, insiders have sold well over $25 million worth of stock - an action that could be a sell signal for other investors, too.
Indeed, insider buying is virtually nonexistent compared with insider selling:
Maybe insiders know something the market has missed ... something like the following huge risks....
*2. Grudge Match: Old Nemesis Plots Revenge - Aggressive Price Cuts, New Tech
Not long ago, Enphase Energy (ENPH) was a big ol' boy in the business.
The maker of solar microinverters claimed bragging rights until SolarEdge came along with a cheaper alternative and stole away market share.
A grudge match ensued. Now Enphase is determined to shove SolarEdge aside by introducing new technology and aggressive price cuts.
*3. Kicker: "Rolls Royce" Enphase Ups The Game
"Enphase ... is the Rolls Royce of all inverters in the industry," according to a solar contractor who spoke with TheStreetSweeper.
He said Enphase has introduced a battery backup for homes that is incompatible with SolarEdge.
The SolarEdge technology involves DC current that must be converted to usable energy before it can charge a battery. Enphase's microinverter, however, has already converted DC to usable AC energy that charges the battery.
The new AC battery is part of the Enphase system, including microinverter, networking hub and an energy tracking system that lets homes and businesses monitor how much solar energy they are generating and using. Then the system determines whether the solar energy should be stored or used.
(Source: Enphase energy storage system)
Enphase launched the AC battery last month in Australia and New Zealand as part of its international expansion. The United States launch is planned later this year.
"We expect the initial demand to be driven by installers looking to retrofit existing residential solar PV systems," Enphase executive Nathan Dun told PV Magazine. "Emphase expects the next wave of demand to be driven by new solar PV system owners enticed by the elegance and simplicity of our solution"
If people like the new Enphase system well enough, SolarEdge could lose serious market share...
StraightPath Communications (STRP): Investors Beware
by Sonya Colberg, Senior Editor, 6/22/2016 10:27:23 AM
StraightPath (STRP) fans haven't recognized it yet, but the Federal Communications Commission Chairman dropped the "C" bomb right on top of StraightPath.
"C" as in competition. Chairman Tom Wheeler told members of the National Press Club that America needs to "open up vast amounts of spectrum for 5G applications."
But Mr. Wheeler's interest in kickstarting the 5G frontier actually rips away some of StraightPath's mojo.
"...competition in the supply of backhaul remains limited and that can translate into higher prices for wireless networks and higher prices for consumers," he said.
So the big picture is that plans are to increase competition for licensed and unlicensed network providers.
Additionally, 5G networks won't even be available until 2020!
Enthusiasm over the possibilities of 5G high frequency spectrum has irrationally stretched StraightPath's stock price.
Now, the latest 5G excitement is actually a huge disappointment to the company. When investors realize this, we believe the price will quickly reverse.
Some key issues facing StraightPath:
*The company has a history of poor-to-no earnings.
JAMN Finally Spills the Beans -- And It's an Ugly Mess
by Janice Shell, 6/2/2011 10:32:51 AM
To be sure, the 10-K offered investors little reason to sing. For starters, the filing reveals, this once-hot “coffee company” sells no coffee of its own at all. JAMN relies on a supplier based in frigid Canada – far away from the tropical Jamaican home of its co-founder Rohan Marley – to provide the company with an actual product to sell to its customers instead.
Back in April of 2010, JAMN inked a “supply and toll agreement” with Canterbury Coffee of British Columbia that gave it access to some brew. According to that agreement, JAMN relies on Canterbury to fulfill every role – save a minor one – normally satisfied by a firm that classifies itself as a coffee company. Canterbury purchases the coffee beans. It roasts them. And it then packages them in bags supplied by JAMN – the company’s only real product – for sale to the public.
JAMN signed this deal more than a year ago, right before Shane Whittle – a notorious Vancouver stock promoter – officially resigned as CEO of the company. But the company never mentioned that agreement, seemingly material enough to warrant at least a quiet 8-K report, in a single regulatory filing until now.
Jammin Java (JAMN): Hot Stock ... Bitter Aftertaste?
by Janice Shell, 6/2/2011 10:30:25 AM
It’s time to wake up and smell the coffee! That’s exactly what Jammin Java (OTC: JAMN.OB), a heavily promotedcoffee company, and – for very different reasons – TheStreetSweeper would like investors to do.
Since the beginning of the year, JAMN has miraculously risen from the ashes of the “Grey Market” graveyard to become one of the liveliest – and richest – stocks in the entire microcap arena. JAMN has seen its stock shoot straight toward heaven, soaring from 55 cents to peak above $6 a share on massive daily volume, with its market value nowtopping $355 million despite the company’s limited resources and operating history. (As covered in more detail below, two of the Internet tout sheets pushing JAMN the hardest effectively vanished -- disabled by their Internet servers -- on the day the stock’s trading volume exploded past 20 million shares.)
CCME: Few Signs of Life at 'Healthy' Chinese Firm
by Roddy Boyd, 3/23/2011 9:30:34 AM
Also, and this cannot be understated, hanging out on a sidewalk in Fujian–the sidewalks double as parking spots when the streets, which appeared to have been designed in the Han Dynasty, fill up–was not a viable option. There was also the matter of the world-class headache the Financial Investigator was developing from Fuzhou’s diabolical smell, an epic conflation of poor sewage treatment, air pollution and the smell of cabbage that made getting the hell off Dongjie street a matter of vital importance.
The Financial Investigator and his traveling companion for the trip, an American investor with extensive experience in China, decided to head upstairs despite our interview with the CFO having been cancelled at the last minute (with no explanation given.) We thought a quick tour of the offices and meeting a few other executives might open our eyes to a few things.
Though the language barrier was a little steep with the young receptionist–when we asked for writing paper, she provided Kleenex–we were in short order shown to their conference room and told to wait. It did not escape notice that pride of place in the conference room belonged to a framed certificate of participation from the Fall 2010 Rodman & Renshaw conference, the World Cup for reverse merger companies and the pumpers and touts who peddle them.
Eventually chief operating officer James Yu came down and after spending 30 minutes trying to understand who we were, concluded that giving us a tour wouldn’t hurt. Soon enough, his colleague, Vinne Ye–the chairman’s assistant–came out and took us around.
It was most eye-opening.more...
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