Summary
- Buying Silevo makes SolarCity into a vertical integrator in the solar space.
- Higher efficiency modules promised aren't as industry leading as promised.
- The stock valuations of vertical integrators in the solar industry leave a lot to be desired.
With the
announcement a couple of weeks ago that
SolarCity (SCTY)
was buying a manufacturer of solar modules, the market sent the stock
soaring for questionable reasons. The biggest issue with any vertical
integration is that the company is now somewhat trapped into a
technology instead of pursuing the most economical solution available on
the market. Secondarily, the solar module market has never lacked from
investments, nor is the manufacturers historically overly profitable.
Read the
full article at Seeking Alpha.
Disclosure: No position mentioned. Please review the disclaimer page for more details.
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