What: Shares of solar installer SolarCity (NASDAQ: SCTY ) are up 17% today after announcing another financing deal.
So what: Direct Energy and SolarCity have created a dedicated investment fund that will offer up to $124 million to build solar projects. Direct Energy will contribute up to $50 million to the fund, which will service commercial and industrial customers.
Now what: To put this move into perspective, SolarCity's market cap is up about $400 million after announcing $124 million in financing. The fund is really business as usual for SolarCity, who didn't raise guidance so there won't be an impact to operations this year. I like SolarCity as a company but have a hard time seeing the stock as a value today, especially with crazy pops on financing that will generate about $25 million in earnings. That's why I'm not a buyer today.
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