Friday, July 31, 2020

The #Solar Industry is Witnessing a Global Consolidation Amidst the Pandemic (OTCQB: $SING) (NASDAQ: $RUN) (NYSE: VSLR) (NASDAQ: $TSLA) @_Singlepoint_ @Sunrun @VivintSolar @Tesla

The #Solar Industry is Witnessing a Global Consolidation Amidst the Pandemic (OTCQB: $SING) (NASDAQ: $RUN) (NYSE: VSLR) (NASDAQ: $TSLA) @_Singlepoint_ @Sunrun @VivintSolar @Tesla

 

Point Roberts WA, Delta BC, July 31, 2020 – Investorideas.com, a global news source and leading investor resource covering cleantech and renewable energy stocks issues a sector snapshot looking at acquisitions and consolidation in the solar sector, featuring SinglePoint, Inc. (OTCQB: SING). 

 

Read this article, featuring SING in full at https://www.investorideas.com/news/2020/cleantech-climatechange/07311Solar-SING-RUN-VSLR-TSLA.asp

 

The solar industry is witnessing a global consolidation amidst the pandemic.  According to CX Tech, “Fresh data from China’s solar power industry association suggests the sector is consolidating, as big companies produce a greater share of the world’s largest solar market’s cells and components and smaller ones are pushed out.”

 

“The nation’s ten largest photovoltaic companies by output accounted for some three quarters of China’s solar cell production in the first half of 2020, up from about 55% in January.”

 

What does this mean for the sector?  According to Shawn Kravetz, Esplanade Capital, this is very bullish, noting, “After Consolidation, Solar Will Shatter Expectations.”

 

On trend within the sector in the US, SinglePoint, Inc. (OTCQB: SING)  just announced that its majority owned subsidiary, Direct Solar of America, LLC , has entered into a Letter of Intent (“LOI”) to acquire Standard Eco Solar (“Standard Eco”), a developer and installer of grid-tied solar electric systems in Texas, Illinois, and Arizona for a combination of cash and stock. Direct Solar and SinglePoint are currently conducting due diligence and SinglePoint will issue common stock once the definitive agreement and audit are completed, facilitating this investment through Direct Solar of America. The transaction is expected to close no later than December 2020. Standard Eco achieved unaudited revenues of $11,345,061 in 2019 and was operationally profitable in both years.

 

From the news: Pablo Diaz, CEO of Direct Solar of America, stated, “We are excited to have entered into this LOI and to begin the work necessary to complete this important acquisition. We believe there is a significant opportunity to embark on a roll up strategy in the solar industry and we see this potential acquisition as an important first step forward for Direct Solar in achieving the goal of being the premier national residential and commercial solar provider. We look forward to reaching a definitive agreement and to add the experienced management and financial strength that comes with this acquisition, as we work to build significant long-term value within our business and for the SinglePoint shareholders.”

 

From the news This is the first acquisition from the recently announced national solar expansion through targeted business acquisitions for SinglePoint and Direct Solar. This intended acquisition will broaden the combined service offering expertise and increase the revenue base in additional to expand gross profits. Standard Eco represents an ideal acquisition that is well positioned to leverage and compliment the sales and customer acquisition platform built by Direct Solar that has recently expanded its nearly national footprint to cover 34 states, including Texas, Illinois, and Arizona where Standard Eco currently operates. Direct Solar intends to use this potential transaction, when completed, as a catalyst for its recently announced national solar installation roll up strategy. We will continue to target accretive companies within the Solar and Renewable Energy space that can benefit from our national footprint and meet our previously announced acquisition strategy. Our goal is to become the national leader in residential and commercial solar solutions and offerings operating in all 50 states.

 

From the news: “Our intended acquisition of Standard Eco complements our overall strategy of providing full spectrum, market leading solutions to Direct Solar’s solar customers as we continue our national expansion through a combination of organic growth and targeted acquisitions that will enhance and deepen our services within our footprint,” said Wil Ralston, President, SinglePoint Inc. “This acquisition leverages many of Direct Solar’s core capabilities and we look forward to the opportunity to expand and grow the overall revenue through expanded solar services.”

 

 A major deal in the US made headlines on July 6th as Sunrun (NASDAQ: RUN), a leading provider of residential solar, battery storage and energy services, and Vivint Solar (NYSE: VSLR), a leading full-service residential solar provider in the United States announced the companies have entered into a definitive agreement under which Sunrun will acquire Vivint Solar in an all-stock transaction, pursuant to which each share of Vivint Solar common stock will be exchanged for 0.55 shares of Sunrun common stock, representing a combined Enterprise Value of $9.2 billion based on the closing price of Sunrun’s shares on July 6, 2020. Vivint Solar stockholders are expected to own approximately 36% and Sunrun stockholders are expected to own approximately 64% of the fully diluted shares of the combined company. The exchange ratio implies a 10% premium for Vivint Solar shares based on closing prices on July 6, 2020, and a 15% premium to the exchange ratio implied by the three month volume weighted average price of Vivint Solar and Sunrun shares.

 

From the news: “Americans want clean and resilient energy. Vivint Solar adds an important and high-quality sales channel that enables our combined company to reach more households and raise awareness about the benefits of home solar and batteries,” said Lynn Jurich, Sunrun’s Chief Executive Officer and co-founder. "This transaction will increase our scale and grow our energy services network to help replace centralized, polluting power plants and accelerate the transition to a 100% clean energy future. We admire Vivint Solar and its employees, and look forward to working together as we integrate the two companies.”

 

The deal, according to Quartz “is the biggest consolidation in the solar industry’s history, posing a threat to Tesla (NASDAQ: TSLA), the number-two competitor for rooftop panels.”

 

Bloomberg reported on the deal calling it, “The second major U.S. energy deal in as many days -- following Berkshire Hathaway Inc.’s $4 billion purchase of Dominion Energy Inc. assets -- also threatens to further weaken Tesla’s grip on the rooftop-solar market and could inspire more sector consolidation. Sunrun and Vivint combined provide about 75% of new residential solar leases each quarter, according to BloombergNEF.”

 

The solar consolidation trend is indeed global, as PV magazine reports on deal flow in France noting,“Two module manufacturers, Systovi and Voltec Solar, plan to join forces to create a bigger player in the French solar manufacturing space.”

 

What does this mean for investors? This trend is their friend as Barrons reported following the Sunrun and Vivint Solar deal. “Investors clearly like the idea. Sunrun stock, which has nearly doubled this year, was up 24.5% to $26.57 near midday Tuesday. Barron’s had recommended the stock last year, when it traded at $14.93. Vivint Solar was up 36.7% to $14.53, while the Dow Jones Industrial Average was down 0.6%.”

 

Want to get more info on the sector?  Visit the Cleantech and Climate Change Podcast page at Investorideas.com

 

Visit the renewable energy stocks directory: http://www.investorideas.com/Companies/RenewableEnergy/Stock_List.asp

 

About Investorideas.com - News that Inspires Big Investing Ideas Investorideas.com is a recognized news source publishing third party news, research and original financial content. Learn about investing in stocks and sector trends with our news alerts, articles, podcasts and videos, looking at cannabis, crypto, AI and IoT, mining, sports biotech, water, renewable energy and more. Investor Idea’s original branded content includes the following podcasts and columns : Crypto Corner , Play by Play sports and stock news column, Investor Ideas Potcasts Cannabis News and Stocks on the Move podcast and column,  Cleantech and Climate Change , Exploring Mining  the AI Eye .

Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. Contact management and IR of each company directly regarding specific questions. Disclosure:  This article featuring SING is a paid for service on Investorideas.com (two thousand) More disclaimer info: https://www.investorideas.com/About/Disclaimer.asp Learn more about publishing your news release and our other news services on the Investorideas.com newswire https://www.investorideas.com/News-Upload/ and tickertagstocknews.com Global investors must adhere to regulations of each country. Please read Investorideas.com privacy policy: https://www.investorideas.com/About/Private_Policy.asp

 

Follow us on Twitter https://twitter.com/Investorideas

Follow us on Facebook https://www.facebook.com/Investorideas

Follow us on YouTube https://www.youtube.com/c/Investorideas

Download our Mobile App for iPhone and Android  

Join our Investor Club https://www.investorideas.com/membership/

 

 

Contact Investorideas.com

800 665 0411

 

 

RenewableEnergyStocks.com: investing ideas in renewable energy stocks

Like Renewable Energy Stocks? View our Renewable Energy Stocks Directory

Get News Alerts on Renewable Energy Stocks

 

 

No comments: