Quick Thoughts: Enphase

Summary

  • Enphase operates in a duopoly with Solar Edge in the solar microinverters space.
  • Enphase is expanding into energy management which is a natural flow.
  • I believe this stock will reach $200 per share by the middle 2020s. It currently trades around $50.
  • If you are a growth investor, you should look to acquire Enphase for a full position 2%-4% of net asset value.
  • If you are a primarily focused on income, but some growth is good too, then look to sell cash-secured puts on Enphase.

Enphase (ENPH) is suffering a small correction due to Coronavirus related slowdowns. Below are the buy zones marked in yellow boxes.

  • If you are more bullish and don’t already own Enphase, use the top box for your initial purchase of 1-2%. 
  • If you are bullish, but conservative, or already own some ENPH, then target the lower buy zone to start or add to holdings. 
Enphase ENPH chart
https://www.tradingview.com/x/MultLvvf/

Also found on the VSL Midcap Growth (check for updates periodically). 

Remember, you are looking for oversold conditions to buy stock or sell puts. 

One viable trade is to sell puts once the upper zone has been entered and use strike prices that at a given premium would result in a net cost basis in the lower buy zone. 

Disclosure: I am/we are long ENPH. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.