Out Fox The $treet

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. 

Before anybody gets carried away, remember that when Warren Buffett buys something it's because the deal is too good to pass up. Or the seller might just be that desperate. In this case, it doesn't appear that First Solar ( FSLR ) was overly desperate to unload the project, but rather Buffett's MidAmerican Energy saw an opportunity to buy at an attractive price with locked in high power rates. Contrary to initial  Reuters reports  about the deal, this isn't likely a Buffett endorsement of the solar industry and if anything could be a signal that he and the executives at MidAmerica expect the solar model going forward to be not as appealing and possibly negative enough to limit supply. Would he really buy into a market where rates are going to crater due to oversupply? Well, maybe with a 25 year iron clad contract; though I'd be worried about the contract being voided if pricing deteriorated too far. Read the full article at Seeking Alpha.  Disclosure:...