Tuesday, 17 June 2014

SCTY - a ray of light for SolarCity

Whilst the broader market saw somewhat choppy moderate gains, there was real hyper strong action in the solar stocks. SolarCity (SCTY) gained an extreme 17.7%, settling in the $64s. There is near term easy upside to the 68/70 zone.

SCTY, daily


*I don't generally follow or chart, the solar stocks, hence the blank chart above!

Suffice to say.. I was made aware of this one today when it was around 10% higher. I did consider chasing it higher in the morning, but I was already content with my current long positions.

As for SolarCity itself...

see key stats @ yahoo finance

The obvious issue remains that the company is not currently profitable, and doesn't pay a dividend - the latter of which is something I generally want to see in a company I am considering getting involved in.

I'm pretty positive on the company in the longer term, but this is very much a momo stock that will be equally susceptible to renewed weakness later this year - not least if the broader market also rolls over.

From a pure price perspective... near term is offering a chance of the $70 threshold, but I would be surprised if we break the February high of $88, any time this summer.