I can’t for the life of me own a stock where the PEs are higher than the temperature of the energy source they are trying to harvest from. Solar stocks are in the stratosphere, I thought about buying FSLR and writing the calls, but I don’t quite want $27.5K dedicated to one position….nor the downside.
That leads me to thinking about the companies who will benefit from Solar.
During the tech boom, we all poured money into innovation, and it’s why the internet runs so smoothly today. Without the fiber optic cable all the big boys paid to lay with share holder money, well, I might not be blogging right now. Most of the guys that did the leg work to set up the networks had major problems reaping the revenue when they commoditized their product. Turns out, some of them went bankrupt, and since you can’t pull up already laid cable the bankrupt companies were sold off by banks for pennies on the dollar.
Same thing is likely starting now, we’re pouring money into solar stocks, and the innovation from the money will eventually lead to grid parity solar energy prices.
So when this grid parity happens - who wins? That’s a million dollar question we got a little time to think about.
Anybody want to discuss? Any ideas? I’m looking for names who are going to install these products and improve margins as they sell un-used energy back to the grid.
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