i had to spend money on a consultant, study esoteric accounting, and get @neroden's help to understand what is going on.
and it actually makes good sense to me. and i believe that using the hlbv accounting method it does reflect changes in value that are building towards solarcity. whether the market views it that way or not remains to be seen.
they are related to the number of deals in the spe's and the number of deals installed this quarter too (my view). the deals in the spe's determine depreciation that flows through to noncontrolling interests, the deals installed this quarter drive a cost vs. sale price adjustment. so those are the two big factors. a simple regression will show a good linear regression fit to cost of revenues (r-square 0.85).
while there is not specific information, there are numerous links i posted about hlbv's which discuss how the valuation method is done on alternative energy deals.
@neroden i've beaten this horse to death you want to take a shot to see if solarcity nci can be explained in plain terms?
and it actually makes good sense to me. and i believe that using the hlbv accounting method it does reflect changes in value that are building towards solarcity. whether the market views it that way or not remains to be seen.
they are related to the number of deals in the spe's and the number of deals installed this quarter too (my view). the deals in the spe's determine depreciation that flows through to noncontrolling interests, the deals installed this quarter drive a cost vs. sale price adjustment. so those are the two big factors. a simple regression will show a good linear regression fit to cost of revenues (r-square 0.85).
while there is not specific information, there are numerous links i posted about hlbv's which discuss how the valuation method is done on alternative energy deals.
@neroden i've beaten this horse to death you want to take a shot to see if solarcity nci can be explained in plain terms?
When you put the numbers like that it is indeed hard for me to keep saying there is doubt about their future performance. I guess my main hangup about it all is that I have a very hard time understanding how these losses work in reality. Ie, where do they come from? Are they from the installed base and therefore proportional to that number? Are they related to sales in the last quarter(s)? Etc. I guess what I am saying either these constructs go above my financial head or there is just too little information available to understand them. Either way, for me personally, I don't like investing in something where I don't even understand the basics.
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