Another Fan of SunPower?

Just a quick note here for you, no complicated teaser to suss out.

I received a brief email from Steve Sjuggerud, one of those Daily Wealth missives, and in it he teased a recent recommendation as follows:

“For my paid subscribers, I uncovered an extraordinary opportunity – the “Hillary Trade.” I found a tech stock that happens to own half of a solar power company… and its stake in the solar company is worth more than the tech company’s entire stock market value!

“Out of respect to my paying subscribers, I can’t share that opportunity here. But there are other ways to make this bet… and spread your risk… For example, you could own one of a handful of alternative energy exchange traded funds (ETFs), like the PowerShares WilderHill Clean Energy Portfolio (PBW).”

Now, I obviously can’t be certain because that’s a pretty limited clue, specifics-wise … but I think I can be almost certain that this is teasing …

Cypress Semiconductor (CY)

Avid readers will remember that we looked at this one a little while back, as part of a writeup of a Navellier solar teaser … Cypress does own a bit more than half of SunPower, which technically isn’t quite worth more than CY’s market cap, but it is getting close, and you could make the argument that half of SunPower is worth more than $4 billion if you argue that SPWR is currently undervalued, as some folks do. Nothing of substance has changed at either company since the comments in this space a couple weeks ago.

I don’t know whether or not they’re right, but I do appreciate that SunPower is the big American company in this business, with the most efficient traditional solar panels and a good distribution network, and if Sjuggerud’s “presidential trade” is right and we’re going to see even more investment in solar energy under the next administration, this would be considered one of the leading companies to benefit — along, of course, with the other big ones like First Solar and Suntech power, and probably many of the tiny ones, too.

And just as an aside, my next door neighbor here in Washington, DC just had solar panels put on his roof, which he calculates will take about 20 years to pay for themselves even with the (fairly modest) federal tax credit — the city apparently doesn’t throw in more credits like California does. But who knows, if natural gas goes much higher and skyrockets electric rates, or he gets to sell his carbon credits someday, he might get to cut that number down significantly. And there’s the psychological benefit, too, even if you don’t consider the environmental benefits — he does seem to get a bit giddy when he stands out by the electric meter on a sunny day, watching the numbers roll backward.

The panels were put in by an authorized SunPower provider, by the way, who bragged about that connection with big signs on his truck.

And no, sadly, the installer was not Akeena Solar.


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