Company Notes


May 30, 2025

We Upgrade Sunrun to HOLD from SELL on: (a) Recent Collapse in Share Price + (b) Risk that Senate Budget Bill Language Favors Resi Solar = Risk of N-Term/Swift Move Higher in Shares; L-Term, we Still See Core Business as Structurally Flawed (due to RUN understating the O&M expenses associated with its SPVs)

By Gordon L. Johnson II

We are Upgrading Sunrun to HOLD from SELL as the “Solar Friendly” Senate is Set to Return from Adjournment Jun. 2nd (i.e., Monday). While we continue to see RUN’s business as structurally flawed (given our…

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May 30, 2025

We Upgrade SolarEdge to HOLD from SELL on: (a) Recent Collapse in Share Price + (b) Risk that Senate Budget Bill Language Favors Resi Solar = Risk of N-Term/Swift Move Higher in Shares; L-Term, we Still See Core Business as Structurally Flawed (due to SEDG’s microinveters being too expensive/its lack of innovation in the battery storage market)

By Gordon L. Johnson II

We are Upgrading SolarEdge to HOLD from SELL as the “Solar Friendly” Senate is Set to Return from Adjournment Jun. 2nd (i.e., Monday). While we continue to see SEDG’s business as structurally flawed (given our view…

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May 29, 2025

A Simple Comparable Company Analysis Suggests Nippon is Overpaying for U.S. Steel by (at least) 63%-to-612%; Our Bet that Trump Would ‘Cave’ was Right (i.e., it’s time to move on); Downgrade from BUY to SELL

By Gordon L. Johnson II

In the Words of Porky Pig… “Ba-Deep, Ba-Deep, That’s All Folks”. We downgrade U.S. Steel’s shares from BUY to SELL, and strongly recommend anyone who purchased when we upgraded to BUY 9/9/24 (when the stock…

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May 21, 2025

Does the Bull Thesis on SolarEdge Rest with the Idea that Because the Stock is Down a Lot + the Company Put Up One Quarter of Better Than Expected (yet still negative) Earnings = It’s a BUY? Our 2025E Yr-End PT Edges Higher to $6.90 from $3.90 Prior

By Gordon L. Johnson II

SolarEdge is Up +70.7% Over the Past Month vs. +15.2% for the S&P 500; is the Move Justified? A few weeks back, SEDG reported 1Q25A sales that beat Cons. by +7.5% and GLJe by 11%….

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May 7, 2025

Tesla’s Week 5 China Sales Miss Consensus by a “Whopping” -44.7% & its European April Car Registrations Plunge (Falling -65.1%, -59.5%, & -45.9%, YoY, in the Key Markets of the U.K., France, & Germany); What’s it Mean for 2Q25E Deliveries vs. Wall Street’s Current Estimate?

By Gordon L. Johnson II

Even the Tesla “Faithful” are Beginning to Realize the Stock Price Could be in (Big) Trouble Should its Car Sales Continue to Falter in 2025. When a Mag7 stock (i.e., TSLA) trades at 138x its…

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May 1, 2025

First Solar 1Q25 Review: Upgrade to BUY from HOLD on Assumption that 45x Credits Remain Intact & “Guidance Revision Medicine” Has Been Taken; PT Adjusts Higher to $172.37/shr

By Gordon L. Johnson II

What Happened? FSLR’s stock came under pressure yesterday following reduced 2025E guidance provided earlier this week, which was worse than expected as we warned in our 4/15 note titled: “Are Investors Underestimating the Top Twelve…

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April 25, 2025

Does: (a) Cheaper String Inverters with MLPE-Like Functionality + (b) a Shift to Lower-Margin Battery-Based Systems + (c) a Pending Flood of Chinese Inverters/Solar-Storage-Systems into Europe + (d) an Exhaustion of Enphase’s High Margin NEM 2.0 California Backlog = >30% Incremental Downside in Enphase’s Shares Thru 2025E?

By Gordon L. Johnson II

1Q25 Results/GLJ’s Take. Earlier this week, ENPH reported results that missed expectations on a number of fronts, namely: (a) when adjusting out safe harbor, 1Q25A “core” revenues of ~$302mn were below Consensus and guidance, (b)…

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April 21, 2025

GLJ Research 1Q25E Tesla Earnings Preview Sheds Light on Rather One Should be Short, Neutral, or Long into Tomorrow’s Quarterly Report

By Gordon L. Johnson II

We have Updated our Bottoms-Up Tesla Earnings Driver Model and See a “Big Problem” w/ the Current 1Q25E non-GAAP EPS Consensus Est. In the following update, when considering the impact(s) from: (a) TSLA’s transition from…

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April 17, 2025

Has the Collective of Wall Street and TroyTeslike Made a “Grave Error” in Forecasting Tesla’s 2Q25E Car Deliveries (in favor of “TSLAQ”)?

By Gordon L. Johnson II

Is Consensus Making a Grave Error in its Estimate for Tesla’s 2Q25E Global Auto Sales? The best investing opportunities arise when there are material dislocations between what Consensus expects vs. what is most likely to…

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April 2, 2025

Does the +15%/+24% 2025E-27E Revenue CAGR (as Well as Surging Margins Over the Same Timeframe) Wall Street is Modeling for Enphase/SolarEdge Match Up with Recent On-The-Ground Checks?

By Gordon L. Johnson II

At the Margin, a Company’s Actual Results vs. Wall Street’s Estimates Determine the Path of the Stock Price. In this note, following recent on-the-ground U.S. solar residential market checks, we seek to answer if the…

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March 31, 2025

GLJe Tesla 1Q25E and 2025E Delivery Estimate Update – What will Tesla Tell Us Tomorrow, and is it “Priced In”?

By Gordon L. Johnson II

GLJ Tesla 1Q25E and 2025E Delivery and Production Estimate Update. While we have, previously, generalized TSLA’s 1Q25E deliveries at 360K-370K, in what follows we provide the thought process around the evolution of our TESLA 1Q25E/2025E…

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March 12, 2025

Are the “Uranium Bears” Overplaying Their Hand, Setting Up (Yet) Another Opportunity to Buy the U3O8 Miners? And, Fire-Side Chat w/ Cameco Addresses Key Questions; Maintain BUY Rating; PT Edges Higher to C$75.68/shr

By Gordon L. Johnson II

Cameco Recently Reported Better Than Expected 4Q24A Results. A few weeks back, Cameco reported adjusted 4Q24 EPS of $0.36, besting Consensus’ $0.33. More important, the company reported adjusted EBITDA of C$524mn (+70% QoQ and +56%…

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February 27, 2025

CLF’s ‘Terrible, Horrible, No Good, Very Bad Day’ Q4 Brings our Yr-End 2025E PT Down to $12.90/shr; Yet, We Maintain BUY on ‘Trump Put’, but Recommend Hedging by Shorting Sep. HRC $879/t Futures & Iron Ore Stocks

By Gordon L. Johnson II

Cleveland Cliffs Reports 4Q24 Results that (Largely) Disappoint. This week, CLF reported 4Q24 rev/non-GAAP EPS of $4.3bn/-$0.68 vs. Cons’ $4.3bn/-$0.69 ests. (GLJe $4.4bn/-$0.53). The company also posted lackluster free-cash-flow (“FCF”) of -$677mn, missing the Street’s…

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February 12, 2025

Nearly Halfway Thru 1Q25 Tesla’s Global Demand Headwinds are Proving Acute/Structural; & Why the Company has a Serious/Budding “FSD Problem”

By Gordon L. Johnson II

Tesla’s Week 6 China Sales Update Yesterday = No Bueno; U.S./European Sales Show (very) Troubling Signs; and June Unsupervised Robotaxi Rollout Appears Set to Severely Disappoint. In this note, we update TSLA’s global sales trend…

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