Actually 1000 shares – 119 average.
If you don’t know Enphase(ENPH) they’re in Solar industry and does residential/small scale micro inverters, batteries and software for the solar setup.
It’s beaten down because of the interest rates. Over the last year or more, they’ve rapidly expanded in EU. Their biggest market in US is California and it’s struggling because of NEM 3.0. NEM 3.0 makes it difficult for homeowners to break even unless they install batteries as well. Enphase offers batteries as well and has much higher margin than a typical micro inverter install.
Why I’ve invested now:
Their guidance is higher than previous quarter earnings, important because they’ve had 4 quarters of declining revenue. Peak of 726 million in Q1 2023 and most recent being 263.3 million in Q1 2024. Their CEO thinks they’ve reached bottom and ready for the next cycle. (I’m sure every CEO is optimistic but he’s a no bull shit guy)
While their sales in US decreases 34% in US, they’ve increased 70% in EU over the past quarter. Of course, they’re starting very low in EU and increase makes sense but I’m very optimistic.
I don’t know what’s going to happen with interest rates/inflation in US. Last few indicators seem good and this week’s PCE is going to be super important.
Needless to say, market is forward looking and this will jump before the action begins.
Also, ENPH is eating SEDG (their main competitor) market share. Look at the earnings if you like to.
Would love to hear your thoughts here..
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