SolarEdge Technologies Inc. (SEDG)
03/06/2025
For Portfolio III, IV
Enphase Energy (ENPH), SolarEdge Technologies (SEDG)
Initiate 4% position for each of ENPH and SEDG
For long term and medium term investment
The price of both companies have been on a down trend for almost two years due to the weakening demand for household solar energy.
The stock price for ENPH and SEDG have probably hit the bottom. However, as today's economic environment, further price depreciation is possible if recession really hits.
Investing in equal weight for both companies is due to following reasons. Enphase's products is slightly better than SolarEdge because products from Enphase are more integrated and streamlined with less possible multiple times of converting between DC and AC. Also, Enphase has a better market position in the United States than SolarEdge whose focus is on Europe. However, SolarEdge's depressed price give a better chance of price appreciation.
Attention should be paid on the business progresses for both companies, especially the solar demand in Europe whose demand for solar energy is weaker than the United States. Both CEOs were very caution in their language of answering questions from analysts. Positive free cash flow is one of important elements to watch in their reports in future quarters, particularly SolarEdge.
Again, concentration investing involves higher risk of significant loss without the protection of diversity.
Each individual investor should always consider their own investment goal, risk tolerance, investing span and objectives for their investment positions. Investing in securities involved the risk of total losses. Investors should always consult with financial professionals.
03/24/2024
For Portfolio III
Close positions and invest in index ETF/Cash
SolarEdge Technologies Inc (SEDG).
Use the processing to invest in index ETF or stay in cash in Portfolio III.
Solar industry still has a lot of growth ahead, but the growth rate of solar panel installation has come down from the high of pandemic. Comparing to Enphase, it looks like that SolarEdge is more expensive now. Its products is less advantageous for home installation. Plus, the risk of geopolitics is much higher for SolarEdge investors.
Again, concentration investing involves higher risk of significant loss without the protection of diversity.
Each individual investor should always consider their own investment goal, risk tolerance, investing span and objectives for their investment positions. Investing in securities involved the risk of total losses. Investors should always consult with financial professionals.
10/20/2023
For Portfolio III
Reduce position in investment
SolarEdge (SEDG)
Reduce 50% of holdings for SolarEdge in Portfolio III.
We believe SolarEdge is a good business and in good financial condition. However, its high valuation and P/E ratio did not live up investors' expectation now. Cutting loses will be a better strategy. Will this prices be the bottom for stock shares? It is uncertain for sure, but as an investor, a decline in price is a sweet opportunity. Cheaper is better for later.
SolarEdge
Renewable energy is still the future, and it will continue to grow for sure. But each sector of economy always has its up and down.
As expected, SolarEdge is getting into utility grade inverter market with its advanced technologies. We believe that is SolarEdge's advantage.
Again, concentration investing involves higher risk of significant loss without the protection of diversity.
Each individual investor should always consider their own investment goal, risk tolerance, investing span and objectives for their investment positions. Investing in securities involved the risk of total losses. Investors should always consult with financial professionals.
07/21/2021 - SolarEdge Technologies - (2021 Review)
Newly updated information is included in Financial Data and Studies.
02/08/2020 - SolarEdge Technologies
Reduce current holding by 50%
07/07/2018 - SolarEdge Technologies
It is certain that inverter business will dominate company’s revenue. The industry trend is a favorite factor, and recent California mandate is likely to push other states to adapt the trend in a long run.
Patent infringement is filed against a Chinese company for its inverters. It is not surprising that inverters are highly profitable, fast growing and beneficial to solar panel installers and owners. It is expected that company share price will be highly volatile in the run.