Apr 7, 2021
[1 min Read]
SOL is gearing up for something big with plans to develop 1GW of solar panels across Europe. Institutional ownership is at 33%. Roughly 290M $ was raised in Jan 2021 through a registered direct offering (these investment funds retards thought it was a good ideea to buy the stock when it was trading at 20$+ so they obviously believe in the long term success of the company) + another 24M EUR from the sales of the 15.4MW project in Romania. Another 12.3MW project was recently sold in Hungary, estimated sale price is roughly 18-20M EUR.
The board was discussing possible M&A plans in the recent shareholder conference with the use of the recently acquired capital. Current EBV is 2.8 and SOL has roughly 5.4$ in cash for each share. The data is not actually reflected into the balance due to delays in finishing the deals, but they will be reflected in the May quaterly report.
I've personally averaged in since early March 2021; my avg px is 10.86, good entry points are at the 9.8-10 tripple support, exit points at 13-16$ for short term trading. I've sold 7.5 Put options during the dips and May 17.5 Call options during the rally in mid March.
MACD currently points towards a weak buy signal, RSI indicators show signs of possible bearish trend reversal, the 200D EMA has been acting as support, while the 50D has been acting as resistance. I believe the momentum is going to reverse after the quaterly reports in May.
My estimated fair valuation for the company is upwards of 1.5B within the next year.
Disclaimer: SOL is highly volatile and this is not financial advice, proceed at your own risk. I just like solar stocks.