# SolarCity (SCTY)



## kaleb0 (Apr 26, 2011)

I took up a small position in my TFSA (100 shares) halfway into the current rally/pop after Elon Musk announced they would vertically integrate by acquiring high-efficiency PV Cell manufacturer Silevo, and subsequent plans to build a solar 'giga factory' in upstate NY.

To be honest I see any shorter term upside in this stock as mostly all momentum (not unlike tsla), but I am also a huge Elon Musk fan and would love to see pretty much all of his ventures pan-out long term.

I see this stock breaking through $70 in the next couple of weeks before coming back down to the $50~ range once the hype wears off.
Anyone else in on SCTY?


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## doctrine (Sep 30, 2011)

It seems to be very expensive. I'd be happy to see any math that puts them at a reasonable valuation. The quick math I've done is not very pretty - they have $2.5B in contracted revenue over the next 20 years. Apply a 23% gross margin and a 8% yearly discount and you're paying an insane price for profits that will take 20 years to fully arrive. P/B is 10(!).


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## PatInTheHat (May 7, 2012)

Great stock to day trade but an incredibly risky one to hold long term. I would be careful with it and would not consider a position unless you are ok with stopping out. It would not surprise me to see it loose over 50+% of its value sometime in the near future.


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