09/10/2026
For Portfolio IV
Increase short sell position for CAVA by 10%,
Initial a short sell position for SEDG equal to 2X of current holding position.
To counter and protect from market volatile.
It is a short sellers' heaven, geopolitical conflicts, inflation pressure, lukewarm job market, bond market rebellion. Following them seems a good idea now, for a short term. At the end, economic activities still count as the most important factor for stock market.
Those short position will always be temporary. Long term goal is the same, holding quality companies as long as they are prospering.
Be careful to use short sell. Usually, brokerage films require short sellers to maintence an adquate margin on their short sell position. It means that investors can not just short sell security without put money in. Due to the fact, market value fluctuates and money from short sells may not enough to cover buy-back-close-short-position; therefore, margin maintance requirement. For example, CAVA short sell margin requirement is 50% for an intial deposit and 30% for market value. It mean that $50.00 is required to deposit in order to initiated a short position of $100 and $36.00 (excluding short sell's market value) is required to maintence the margin requirement if the marktet value of short position goes up to $120.
Again, concentration investing involves higher risk of significant loss without the protection of diversity.
Each individual investor should always consider their own investment goal, risk tolerance, investing span and objectives for their investment positions. Investing in securities involved the risk of total losses. Investors should always consult with financial professionals.
08/14/2026
For Portfolio IV
SolarEdge Technologies (SEDG), CAVA Group Inc (CAVA).
Reduce 50% of current holdings for SolarEdge in Portfolio IV.
Increase the position of CAVA Group to 10% in Portfolio IV.
Investment relocation.
The business of SolarEdge was improving but slower than Enphase Energy (or slower than market like). Also, it still has negative operating cash flow. Since inflation worry, lack of renewable energy incentive are still the major depression for both European and north American solar energy industry, residential market recovery is still unclear. However commercial market has been picking up for both companies. As for stock price of SolarEdge, it is still subject to the pressure from short sellers (17% short selling of outstanding shares from the Charles Schwab last reported). However, there is a silver lining that maybe this is the bottom of solar energy industry, no government help, low on free spending money for consumer to build home solar system. At this point, Enphase should have better experience to navigate the depressed economy situation since Enphase had recovered from the brink of bankruptcy led by current CEO in 2017.
At another topic, CAVA Group has proved itself as leader in fast-casual restaurant industry. Business execution is well under founders-team management and the path of continuous growth is even more clearer. In here softwaterinvestment, CAVA Group maybe is the one with lots of wet snow and a long down hill to make a big snow ball. Finger cross, no promise.
Again, concentration investing involves higher risk of significant loss without the protection of diversity.
Each individual investor should always consider their own investment goal, risk tolerance, investing span and objectives for their investment positions. Investing in securities involved the risk of total losses. Investors should always consult with financial professionals.
05/26/2026
For Portfolio IV
SolarEdge Technologies Inc (SEDG), Enphase Energy Inc (ENPH)
Reduce 25% of current holdings for both SEDG and ENPH in Portfolio IV.
Keep more cash in hand and reduce the weight of two companies in Portfolio.
It is purely cash relocation for raining day and other investment opportunities.
Again, concentration investing involves higher risk of significant loss without the protection of diversity.
Each individual investor should always consider their own investment goal, risk tolerance, investing span and objectives for their investment positions. Investing in securities involved the risk of total losses. Investors should always consult with financial professionals.
09/15/2025
For Portfolio II, IV
SolarEdge Technologies (SEDG), Cadence Design Systems (CDNS), Synopsys Inc (SNPS), NVIDIA Inc (NVDA), Netflix (NFLX).
Reduce the position of SolarEdge 70% for both portfolios
Reduce the position 50% for Cadence Design Systems, Synopsys Inc, NVIDIA Inc and Netflix Inc for both portfolios
Adjustment for the position of investment
Taking some profit and reducing the exposure of downside risk for SolarEdge is a sound idea now due to the geopolitical tension and slower improvement in operating cash flow.
50% of investment reduction for above mentioned securities are related to following reasons:
Higher stock market valuation comparing to a potential slower economic growth on business and jobs.
Tension and uncertainty on global economy, especially in Asia.
Create larger pool of fund for raining days.
This is not a fair valued stock market.
Again, concentration investing involves higher risk of significant loss without the protection of diversity.
Each individual investor should always consider their own investment goal, risk tolerance, investing span and objectives for their investment positions. Investing in securities involved the risk of total losses. Investors should always consult with financial professionals.
03/06/2025
For Portfolio III, IV
Enphase Energy (ENPH), SolarEdge Technologies (SEDG)
Initiate 4% position for each of ENPH and SEDG
For long term and medium term investment
The price of both companies have been on a down trend for almost two years due to the weakening demand for household solar energy.
The stock price for ENPH and SEDG have probably hit the bottom. However, as today's economic environment, further price depreciation is possible if recession really hits.
Investing in equal weight for both companies is due to following reasons. Enphase's products is slightly better than SolarEdge because products from Enphase are more integrated and streamlined with less possible multiple times of converting between DC and AC. Also, Enphase has a better market position in the United States than SolarEdge whose focus is on Europe. However, SolarEdge's depressed price give a better chance of price appreciation.
Attention should be paid on the business progresses for both companies, especially the solar demand in Europe whose demand for solar energy is weaker than the United States. Both CEOs were very caution in their language of answering questions from analysts. Positive free cash flow is one of important elements to watch in their reports in future quarters, particularly SolarEdge.
Again, concentration investing involves higher risk of significant loss without the protection of diversity.
Each individual investor should always consider their own investment goal, risk tolerance, investing span and objectives for their investment positions. Investing in securities involved the risk of total losses. Investors should always consult with financial professionals.
03/24/2024
For Portfolio III
Close positions and invest in index ETF/Cash
SolarEdge Technologies Inc (SEDG).
Use the processing to invest in index ETF or stay in cash in Portfolio III.
Solar industry still has a lot of growth ahead, but the growth rate of solar panel installation has come down from the high of pandemic. Comparing to Enphase, it looks like that SolarEdge is more expensive now. Its products is less advantageous for home installation. Plus, the risk of geopolitics is much higher for SolarEdge investors.
Again, concentration investing involves higher risk of significant loss without the protection of diversity.
Each individual investor should always consider their own investment goal, risk tolerance, investing span and objectives for their investment positions. Investing in securities involved the risk of total losses. Investors should always consult with financial professionals.
10/20/2023
For Portfolio III
Reduce position in investment
SolarEdge (SEDG)
Reduce 50% of holdings for SolarEdge in Portfolio III.
We believe SolarEdge is a good business and in good financial condition. However, its high valuation and P/E ratio did not live up investors' expectation now. Cutting loses will be a better strategy. Will this prices be the bottom for stock shares? It is uncertain for sure, but as an investor, a decline in price is a sweet opportunity. Cheaper is better for later.
SolarEdge
Renewable energy is still the future, and it will continue to grow for sure. But each sector of economy always has its up and down.
As expected, SolarEdge is getting into utility grade inverter market with its advanced technologies. We believe that is SolarEdge's advantage.
Again, concentration investing involves higher risk of significant loss without the protection of diversity.
Each individual investor should always consider their own investment goal, risk tolerance, investing span and objectives for their investment positions. Investing in securities involved the risk of total losses. Investors should always consult with financial professionals.
07/21/2021 - SolarEdge Technologies - (2021 Review)
Newly updated information is included in Financial Data and Studies.
02/08/2020 - SolarEdge Technologies
Reduce current holding by 50%
07/07/2018 - SolarEdge Technologies
It is certain that inverter business will dominate company’s revenue. The industry trend is a favorite factor, and recent California mandate is likely to push other states to adapt the trend in a long run.
Patent infringement is filed against a Chinese company for its inverters. It is not surprising that inverters are highly profitable, fast growing and beneficial to solar panel installers and owners. It is expected that company share price will be highly volatile in the run.