The Great Solar Reversal (Sector Deep Dive 1)
Why the market's most hated sector is setting up for a massive run
Happy new year everyone, May you obliterate your goals and desires
I promise to provide more alpha and insightful posts this year
Back in May/June, the battery sector was dead money. Nobody wanted to touch it. But contrarian investing is about identifying value before the crowd arrives. The market has finally understood the importance of storage. Most names in my watchlist delivered 4-6X returns in just a few months
Just look at this insane stock prices.
Now Solar is shifting gears.
The sector is catching a bid, charts are bottoming out, and we are seeing breakouts from long bases. This is the ‘sweet spot’ for entry.
Allright, let me show you exhibits of why this sector is going to nail it in the next months/years
EXHIBIT 1
Hate him or love him, but nobody’s made money SHORTING him
EXHIBIT 2
TAN, the Solar ETF broke out of it’s 4-5 year trend.
EXHIBIT 3
The economics and the markets are clear on this one
EXHIBIT 4
Most new additional capacity added was Solar. Yes, even under Trump Regime.
EXHIBIT 5
You can now pack your Solar power in a lunch box and eat it when you please. Pack me some Sun please!!
EXHIBIT 6
It’s one of the fastest and cheapest way to bring power online quick
EXHIBIT 7
Big companies are signing very long renewable contracts. Microsoft recently signed 20 year contract. And now Google and META. These companies are Pro’s and they know what they are doing
EXHIBIT 8
Regardless of unclear policies in the coming years, Solar and Batteries are the biggest interconnection request in ERCOT
In the Following posts, I will be detailing my favorite names. Some with higher risks and some with the best R/R. There’s a large number of stocks to choose from for different risk spectrums
Stay tuned for the next one. I will do a deep dive into a name I am currently accumulating, and hope would become my next TE like conviction