As messy as SolarCity's filing is, NC Solar's is much worse. The company has filed as an emerging growth company under the JOBS act. Its plan is to install solar panels on warehouse rooftops. But the company has only one customer so far, Duke Energy (DUK - Get Report).
One big red flag is that NC Solar's management doesn't have any solar experience. The filing reads: "Our management does not have any specific training in running a solar energy company. With no direct training or experience in this area, our management may not be fully aware of many of the specific requirements related to working within this industry." In addition to that, they have full-time jobs elsewhere.
Of course, it goes almost without saying, this is destined to be a penny stock as NC Solar is seeking to raise roughly 218,000, offering 1.45 million shares at a maximum price of 15 cents each.
If you think the government has lost its sunny disposition towards solar, the public market is right there with it. Solar stocks have plunged into darkness over the past year. First Solar (FSLR - Get Report) is down 44% for the past year, SunPower (SPWR - Get Report) has dropped 45%, and Trina Solar (TSL - Get Report) is off 50%.Venture capital and private equity funds have probably walked away too. So, a public offering, however dim the prospects may be, seems like their last best hope. -- Written by Debra Borchardt in New York.
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