Peter Rive just sold ~9M in SCTY stock. I'm concerned that he may think SCTY has peaked

Discussion in 'Stock Market Forum' started by askanison, Aug 1, 2014.

  1. askanison

    askanison Guest

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    I'm concerned that he may think SCTY has peaked. He could have sold for any number of reasons. Since he is CTO of SCTY I'm thinking that maybe he is viewing the current price as a peak in the short term range. Any thoughts or opinions?
     
  2. JR Ewing

    JR Ewing Super Moderator Staff Member

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    If he sold several million worth of stock, it could be some cause for concern. Maybe dig around SEC filings and see if you can find out why? If he sold to pay taxes on a previous award of a larger amount of stock or options or whatever, it's probably not a big deal.

    I have a pretty modest stock position in FSLR, and a smaller one in DQ, and I have puts on both. Solar is a volatile industry.
     
  3. Profit5500

    Profit5500 Senior Investor

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    So if Peter sold all that stock what is he going to do now? Would he still invest like into a different companies stock like Microsoft?
     
  4. jtm

    jtm New Member

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    I think it's significant to ask: .. what proportion of his holding was $9 million? If you had nearly $30 million tied up in one stock, and it was clearly at a near term peak, in a market that is clearly headed for a near term correction...... do you think maybe you'd like pull a bit of cash out in order to wait for another opportunity as the market moves down... maybe even diversify those vastly more valuable holdings ??

    ... it's called rebalancing. He still holds twice that amount in SCTY stock. The company is building a tidal wave of long term cash flow with every new contract, and I believe at the end of the 20 year cycles their customers are most likely to stick with SCTY for their inevitable upgrades, so I can't see anything but bright future...

    ....as long as they execute and continue to grow awareness of their brand. I see far more aggresive advertising from smaller regional firms, and that leaves me with fears of an eroding base. Even though the company is universally well known among investors, it is still not a household word among consumers, and THAT troubles me. Other than that, the team, the quality, the evolving breadth of customer types etc show me that they are the absolute top of their industry.

    Disclosure: I hold SCTY (and play with the volatility to increase my income); I also have a little FSLR, and more important to me SPWR (a more direct rival to SCTY). FSLR has the problem of being locked into a single product line, their thin film panels, and have been, and still are, vulnerable to volatile prices for cheaper panels. SunPower and SolarCity are far more flexible and can move between manufacturers to hold costs down... and SolarCity has even bought their own manufacturer to make up differences and compete directly with their suppliers. A great move. SPWR and SCTY truly dominate the industry.

    SCTY: One of my most confident holdings in my portfolio of well over 100 stocks.
     
    Last edited: Aug 2, 2014
  5. askanison

    askanison Guest

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    I just did some digging as JR suggested and they were made according to a 10b5-1 trading plan. You can read the details Here. Makes me feel somewhat better knowing just why.
     
  6. JR Ewing

    JR Ewing Super Moderator Staff Member

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    These are all good companies, but the solar industry itself has a ways to go. Solar stocks are basically speculative holdings within my portfolio. I'm much bigger on the more viable oil drillers and servicers, as well as the nat gas plays to a lesser degree.
     

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