There are subsidies specific to residential solar that aren’t available to other forms of solar. Essentially, homes without solar subsidize the ones with solar by paying higher electricity rates. I don’t think that this is sustainable in the long run. For there to be more residential solar, electricity rates will have to go higher and higher. (Ironically this improves the economics of subsidized residential solar.) At some point, I think that voters will ask for lower electricity bills. Eventually, politicians “ought” to reduce residential solar subsidies.
(The analysis in this post is superficial. I apologize in advance.)
There’s some interesting stuff in the latest 10-K that Avid has filed. While some of these details are good for the short thesis, I still think that there are better shorts out there.
I think that investors should pay attention to all of the costs being capitalized in the latest 10-Q.
John Hendricks, the founder of the Discovery Channel (DISCA/B/K), wrote a book on his life story. Here are my key takeaways from the book.
My Twitter will have more of my half-baked ideas and random observations.
In the past, I’ve written various posts about shorting US homebuilders. This post look at lessons that could be learned from the experience. I was largely right about which companies were the worst. However, I was hurt by the favorable macroeconomic environment for homebuilders.
For whatever reason, it seems that many institutional investors analyze this sector poorly. This creates wonderful opportunities for short sellers. To recap, this sector has attractive shorts because:
- It seems that many institutional investors don’t understand how oil and gas companies inflate their reserves.
- Inflated reserves are very common among oil and gas companies.
- Institutional ownership is high enough that there are reasonable borrows on these stocks.
- Many management teams use the company as their piggy bank to pay for corporate jets, expensive meals, etc.
- Valuations are high.
- A few of these companies are pump and dumps.