SolarCity (SCTY) Buys Silevo; Stock Soars

 
SolarCity (SCTY) stock rocketed 15% in afternoon trading after the installer of rooftop solar systems said that it had signed a deal to buy solar panel maker Silevo for as much as $350 million, Investor’s Business Daily reported.
 
The announcement was made in a blog post by SolarCity Chairman Elon Musk and other top execs on the company's website. Fremont, California-based Silevo makes photovoltaic solar panels. Musk noted in his blog post that Silevo's solar products "have demonstrated a unique combination of high energy output and low cost."
 
"Our intent is to combine what we believe is fundamentally the best photovoltaic technology with massive economies of scale to achieve a breakthrough in the cost of solar power," Musk wrote. "Although no other acquisitions are currently being contemplated, SolarCity may acquire additional photovoltaics companies as needed to ensure clear technology leadership and we plan to grow internal engineering significantly."
 
SolarCity will pay $200 million in stock for Silevo and up to $150 million more in stock if Silevo meets certain conditions, according to SolarCity's filing with the Securities and Exchange Commission on Tuesday.
 
SCTY was recommended in Timothy Lutts’ “Stocks to Buy and Hold Forever” for Cabot Wealth Advisory. Tim is the Chief Analyst of Cabot Stock of the Month.

 


Stock Picks

General Motors

The top dividend stock in the auto industry is General Motors (GM), a leader in big high-margin models, both in the U.S. and in China.

Anheuser-Busch Inbev

Revenues at the company fell 7% last year, while earnings shrank 4%, but the stock is holding up surprisingly well.

Monster Beverage

Thanks to its Coca-Cola agreement, Monster Energy drinks will hit shelves in Australia and New Zealand later this month.

Cabot Wealth Advisory

Grace Groner and the Power of Dividend Reinvestment Plans

By Paul Goodwin on May 27, 2016

Buying and holding stocks and enrolling in dividend reinvestment plans aren't exciting ways to invest, but they're an effective way to build long-lasting wealth. For evidence, look no further than Grace Groner. Read More >

One of the Leading Biotech Stocks Is Now on Sale

By J. Royden Ward on May 26, 2016

Standard & Poor’s lists a whopping 196 biotechnology companies in its database, but AbbVie (ABBV) stands out above the rest. The company is growing rapidly but due to the correction in biotech stocks, it’s now an undervalued stock.Read More >

The Best Small-Cap Dividend Stocks to Buy Now

By Tyler Laundon on May 24, 2016

While small-cap dividend stocks don’t always make for juicy storylines, the fact is that many of the best performers in the stock market today are these little income producers. And if you have the willpower to stick with them, you may easily find their performance rivals that of the best performing growth stocks. Here are three stocks for your review. Read More >