Does anyone follow this stock? I received a report stating CY's stake in SunPower is more than their current enterprise value? Making it's solar position worth more than it's entire semiconductor business.
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Does anyone follow this stock? I received a report stating CY's stake in SunPower is more than their current enterprise value? Making it's solar position worth more than it's entire semiconductor business.
CY's investment is only good for cash if they cash it out, after that what value is there? They arent getting a return to the income statement, thus the only value is if they sell the shares.
One time events like this really cannot be priced into the stock since it isnt a part of core operations and is not repeatable.
I imagine they will either spin it off completely to their shareholders which adds NO value to the stock, or they sell it and they get cash..which would hurt the other company stock and is a one time blip.
I wouldnt own CY based on their investment in SPWR personally.
Here is the problem with that thinking.
CY's investment is only good for cash if they cash it out, after that what value is there? They arent getting a return to the income statement, thus the only value is if they sell the shares.
One time events like this really cannot be priced into the stock since it isnt a part of core operations and is not repeatable.
I imagine they will either spin it off completely to their shareholders which adds NO value to the stock, or they sell it and they get cash..which would hurt the other company stock and is a one time blip.
I wouldnt own CY based on their investment in SPWR personally.
Thanks, I don't know or understand semi or solar business enough to invest. However as I said a Newsletter, which has provided some decent picks in the past, based it's whole May Newsletter on CY calling it the Hilary/Obama Trade in conjunction w/ the Sox Index being at 1996 levels. I'm sure you've heard on these guys Stansberry Research True Wealth. For the record they also like ITB, IYR,PBE, BIPIX, and KRE. Talk about bottom fishing
Wallstreet,
Thanks, I don't know or understand semi or solar business enough to invest. However as I said a Newsletter, which has provided some decent picks in the past, based it's whole May Newsletter on CY calling it the Hilary/Obama Trade in conjunction w/ the Sox Index being at 1996 levels. I'm sure you've heard on these guys Stansberry Research True Wealth. For the record they also like ITB, IYR,PBE, BIPIX, and KRE. Talk about bottom fishing
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