Out Fox The $treet

The economics of building a solar like utility continue to soar. The EPS loss for 2016 likely to exceed $10 after the big guide down for Q2. The long-term benefits of recurring cash flows do not matter to the investment equation until the company reduces operating costs. The collapse in SolarCity (NASDAQ: SCTY ) again proves that no matter what long-term economics a company can present to the market, the short-term numbers matter more. The whole scenario reminds me of the famous quote from the Wimpy character in  Popeye :  Read the full article on Seeking Alpha.   Disclosure: No positions mentioned. Please read the disclaimer page for more details.

Summary SolarCity reported Q4 earnings that missed analyst targets. A couple of negative trends continue to pop up. The stock isn't likely to gain traction without proper resolution of these negative trends. SolarCity (NASDAQ: SCTY ) remains good at installing new rooftop solar power systems at breakneck speed. The company though is slowly losing momentum in convincing investors that these systems make a good investment with the outlandish operating expenses. After another miss and more importantly continuing negative trends, investors don't appear so convinced that the growing solar deployments are adding the same value as proposed by the management team. Read the full article at Seeking Alpha. Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

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. 

With growth rates in most key metrics exceeding 100%, SolarCity ( NASDAQ: SCTY     ) seemed like the last company that would need to engage Groupon ( NASDAQ: GRPN     ) to hock its products. The installer of rooftop solar systems at monthly costs comparable to the local power utility, SolarCity doesn't appear to lack customers after reaching the 110,000 threshold in the last quarter. Typically Groupon provides promotions for small business clients to attract customer attention in crowded marketplaces. The business proposition relies on obtaining repeat business after getting the customer in the door for the first time. Read the full article here . Disclosure: No positions mentioned. Please read the disclaimer page for more details.

After warning investors back during mid-May to not fall for the hype on the soaring SolarCity ( SCTY ) , the stock spent the next five months in a downtrend. Only recently had the stock moved slightly higher than the warning level until Goldman Sachs ( GS ) issued an upgrade that caused the stock to soar over 11% at one point to a new all-time high at $67.14. SolarCity is a leader in the rooftop solar panel market and famously has Elon Musk as the Chairman of the Board. For those living under a rock, Elon is a revolutionary investor and inventor that is the CEO of both Tesla Motors ( TSLA ) and SpaceX . SolarCity offers solar power directly to consumers, businesses and government organizations for less than they spend on utility bills while taking care of the design and permitting process to get the panels installed. In addition, it handles all the monitoring and maintenance to ensure the rooftop solar panels continue to work properly. Read the full article at Seekin...

Editors Choice When Ruckus Wireless (NYSE: RKUS ) went public in mid-November, the stock immediately crashed from an opening price of $15 all the way to close at $12.25 for an 18% loss on the initial day. A month later the stock has soared to a high of $20 highlighting the issues with the IPO market. The market for IPOs remains as arcane as decades ago with institutional investors blocking out individual more » Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

With the SolarCity Corp (SCTY) IPO last week, investors got another reminder of the time demands of Tesla Motors (TSLA) CEO Elon Musk. Not only is he busy attempting to make Tesla into a force in the auto sector, but also he is busy launching rockets to Mars via SpaceX and now prominently involved with another public company. If anything highlighted the issues with his time, it had to be the IPO interview on CNBC. In general, it is odd for the chairman to be involved in the post-IPO interview. On top of that, the interviewers kept attempting to steer the questions towards Tesla. That isn't necessarily the fault of Musk, but it does highlight the issues that the stock market will place on his priorities now that he runs two public companies. While all three of his companies are revolutionary and worthy of attention, none of the companies are exactly more than developmental at this point. Tesla, as a prime point, has been public for over two years yet the market became excited base...

Anybody following this blog knows that Stone Fox Capital has been negative on Tesla Motors (TSLA) because the CEO, Elon Musk, is actively involved in multiple firms. In what is seen as his 3rd firm, SolarCity (SCTY) debuted to on the Nasdaq. The CNBC interview this morning highlights the issue with him so focused on other firms. As only Chairman, it's odd for him to be interviewed along with the CEO. Typically its the CFO if anybody that shows up on tv. Note how the conversation goes directly towards Tesla when the CEO can't hear the interviewers. Just the confusion on this interview highlights the risks in these stocks. Elon is clearly highly involved with this firm along with SpaceX. As the CEO of Tesla, he should be spending all of his time on that firm. The guy is obviously brilliant, but his competition is completely focused on one company and sector. Disclosure: No positions mentioned. Please review the disclaimer page for more details.