By Jeff Siegel
Good news for solar investors …
Another solar financing/installation company is about to go
public. And if history serves as any indicator, this could be yet
another opportunity to land some pretty solid gains. As reported in the Wall Street Journal, Sunrun, Inc. is set work
with banks including Credit Suisse Group AG and Goldman Sachs
Group Inc. on an IPO.
No final price has be set at this time, but currently the company
is valued at more than $1.3 billion, which puts it roughly in the
same box with Vivint Solar (NYSE: VSLR).
The fastest horse in this race right now is SolarCity (NASDAQ: SCTY),
which is valued at just under $5 billion. SolarCity was certainly a great opportunity for investors back in
2012, when the company first went public. At it's highest, the
stock had climbed more than 700% since debuting. Check it out …
SolarCity is currently taking on a very aggressive growth
strategy, and with this growth has come growing pains which have
resulted in a sizable sell-off since last September. Still,
overall I like SolarCity and believe it's a force that will
continue to eat up market share. But for investors, 2015 is going
to be a bumpy ride.
Now Vivint Solar has only been public for about six months. After
the initial enthusiasm of its debut, the stock fell a bit and
found support around the $8.00 level. However, since the start of
the year, the stock is up about 40%.
Vivint Solar is also a force and should not be taken lightly. Of course, Sunrun is no slouch either. Solar installation and
financing companies aren't typically valued at more than $1
billion. The company has been in the game since 2007, has more
than 60,000 customers, and is in the right business, as
residential solar installation is expected to grow by 50% this
year.
I will be curious to see how they price this thing, though. With
so many investors so incredibly giddy over solar again, I won't be
surprised if Sunrun gets a rather large price tag attached to it.
In which case, I'll happily wait for the sell-off and scoop up a
few shares after the smoke has cleared.
http://www.altenergystocks.com/archives/2015/03/sunrun_the_next_big_solar_ipo.html
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