Thursday, May 19, 2016

Buy, Sell Solar City

I bought (CRM) today for the following reasons;
- Quarterly results outperformed.
- Marc Benioff is a charismatic and effective founder & CEO.
- Helping people sell more is a basic business need and Salesforce is a recognized leader.
- SAS business model wins in the long run.
Price: $82.03
Trade/Portfolio: 3.01%
Position/Portfolio: 3.01% (opening position)

I sold SolarCity (SCTY);
- Quarterly results included bookings at half the estimate.
- After limited research on Nevada's feed-in tariff controversy, it appears that while retroactive repricing seems unethical, state has legitimate case to create solar farms and reduce feed-in tariff's moving forward.
- Purchase plans gaining market share over leasing in which SolarCity has a funding advantage.
- Too many regulatory dependencies affecting stock.
Price: $20.31
Trade/Portfolio: 4.22%
Position/Portfolio: 4.22%

Monday, May 9, 2016

Sell Lending Club

I closed position on Lending Club (LC) today because;
- CEO Renaud Laplanche resigned along with 3 top managers after internal audit discovered loans were brought against customer's instructions. Limited details were provided but the fact that the founder and CEO had to resign doesn't make me want to wait to fully understand.
- Profits lower than expected, $0.01 versus $0.05 consensus.
- Stock has underperformed market for last 3 quarters despite beating expectations. This, coupled with ethics questions, could mean they were cooking the books.
- There at least a small probability that traditional banking interests are colluding against loan market places, but it's time to shoot first and ask questions later.
- Sad day for the revolution in banking :(
Price: $5.45
Trade/Portfolio: 4.70%
Position/Portfolio: Closed