SolarCity Corp Strategies To Remain Intact After CFO Exit

0

SolarCity Corp (NASDAQ:SCTY) CFO Bob Kelly is exiting the company after serving for two and a half years. Brad Buss, an ex-employee of Cypress Semiconductor, will be in charge after Kelly leaves. It is always disheartening to see senior executive leaving a company, however the step in no way signifies a major transition in the strategy of SolarCity, states analyst Josh Baribeau at Canaccord Genuity, in a report dated 4 August 2014.

Play Quizzes 4

 

No major change in strategy for SolarCity

This Is What Hedge Funds Will Need To Do To Succeed In The Long Term

InvestLast year was a banner year for hedge funds in general, as the industry attracted $31 billion worth of net inflows, according to data from HFM. That total included a challenging fourth quarter, in which investors pulled more than $23 billion from hedge funds. HFM reported $12 billion in inflows for the first quarter following Read More

Kelly’s substantial input in taking the company public and helping in the monetization of the company’s third-party ownership TPO model alongside industry’s first solar asset-backed notes will be remembered. The ability of SolarCity to source tax equity of other forms of structure finance will not be impacted after the exit of Kelly.

Buss has deep insight in the semiconductor manufacturing, which will be significant in resolving the company’s shortcomings previously pointed out by the analyst, when the “the company embarks on building its own solar cell/module factor.” Canaccord analyst is not very fond of this “commercially unproven technology and probable distraction to the company,” and believes Buss’s experience in the field would bring down some operational risks.

[drizzle]

Buss is a director in sister company Tesla Motors Inc (NASDAQ:TSLA), which again is a strategic advantage strengthening the position of the SolarCity in Solar energy storage technologies in the future, as well.

Canaccord Genuity has assigned Buy rating to SolarCity with a price target of $94.00

What to expect in 2Q results?

SolarCity Corp (NASDAQ:SCTY) is expected to release its second-quarter results on Thursday, where analysts are expecting it to post a loss. On an average analyst are expecting the company to post a loss of $73.3 million, or 99 cents per share compared to a loss of 31 cents per share in the previous year.

Sales are expected to come in at $63.2 million, compared to $37.9 million in the second-quarter of 2013. SolarCity shares gained 68% in the past 12 months and 23% so far this year.  In last three months, the company has gained 30%.

Key areas that analysts are focusing this quarter are updates on the reduced cost or any plans for the same. Also, the company is expected to talk about its targets for Silevo and probable timing of the planned Solar panel plant, which will be set up in the New York.

[/drizzle]

Updated on

Aman is MBA (Finance) with an experience on both Marketing and Finance side. He has worked as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, reviewing tech gadgets, playing PC games and cricket. - Email him at amanjain@valuewalk.com
Previous article Drawing Parallels Between Company Quality and Economic Strength
Next article Investors Flock To Frontier Markets In Search Of Yields

No posts to display