By: Tomas Ronolski - AllPennyStocks.com News

Tuesday, May 10, 2016

Shares of SolarCity Corp. (NASDAQ:SCTY), a California-based company engaged in the design, manufacture, installation and sale or lease of solar energy systems to residential and commercial customers, or sale of electricity generated by solar energy systems to customers, have plunged in trading today after investors were disappointed with the company’s quarterly results and outlook. While SCTY registered an 82% increase in its first-quarter revenue, investors are mainly disappointed with bookings. SCTY’s bookings were around 150 MW lower-than-forecast. As a result, SCTY also reduced its guidance for full-year installations from 1.25 GW to between 1 and 1.1 GW.

SCTY shares were down more than 24%, at last check. The stock is now hovering close to its 52-week low of $16.31.

However, it’s not a bad day for all solar stocks. In fact, shares of Canada-based Solar Alliance Energy Inc. (TSX-Venture:SAN) are sharply higher in trading today. Solar Alliance focuses on residential solar installations. Since its inception, SAN has developed more than 360 MW of renewable energy projects and subsequently sold them to utilities or large independent power producers. The company has installed more than 2,000 residential solar systems in southern California.

At last check, Solar Alliance Energy shares were trading 14.29% higher at $0.08.

SAN shares are gaining momentum in trading today after the company announced its 2015 financial results. For the year ended December 31, 2015, SAN reported net income of $5.5 million. On a per share basis, SAN reported earnings of $0.12.

In 2015, SAN completed the acquisition of Solar Alliance of America. Through this acquisition, the company now provides rooftop solar energy systems to homeowners, with its present operations focused in the San Diego area. SAN believes that solar adoption is still in the early stages and the penetration of solar energy systems will continue to accelerate for the foreseeable future due to overwhelming positive economic returns associated with the transition to solar.

Jason Bak, Chairman and CEO at Solar Alliance, said that 2015 was a year of change and significant growth for SAN as the company completed the acquisition of a San Diego solar company and received the final payment from the sale of its Cloosh Valley Wind Project. Bak noted that these two key events put it in a much stronger financial position with incredible growth potential. Bak added that the market for solar energy is growing at a rapid pace and the company is perfectly positioned to take advantage of it.

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