 Good day, fellow investors. I continue with my research on solar stocks. Yes, I've checked more than 48 of them in the last few weeks, so I pretty much see what's going on there. And a very interesting stock that has a lot of potential, maybe not in the short term, but in the long term, is SMA Solar. It's a German stock that builds power inverters and all other kind of equipment for solar systems. Let's see. SMA's product offering goes from inverters, DC technology, and then also digital technology that is needed for the control of the whole power plant system. And they are developing data and system efficiency operation that are segments that are expected to boom alongside the continuation of the booming solar trend, at least in the long term. The mega trends that they see transforming the electricity ecosystem are decarbonization, sector convergence, the structural transformation of the energy system, and distribution in the electricity industry. So they see a five-fold increase of installed PV capacity by 2040 and tenfold by 2040, where better storage global capacity also increases more than 2000 times by 2040. And I must say I agree with their assumptions, but I don't know when this will become a good investment, because it will probably become at some point in time with all the cyclicality in the market, but not yet. Let's see. In the short term, things are not so rosy as we have discussed in yesterday's video about China cutting its quotas for solar electricity, cutting solar electricity prices that has really clamored the market for all solar stocks and all solar related producers, which might create an opportunity. So that's again a very interesting point. Now going back to SMA, we have had guidance with China growing or staying flat. They guide about 900 million to 1 billion in revenues for 2018. However, you can see here on the right side extreme volatility in their regional sales. They lost 50% of sales in the Americas in 2017, in confront to 2016. Other companies really gained territory there. And then they were growing in China and Europe and the Middle East and Africa. However, this volatility can now happen also in China, so I don't think they will hit the 900 million or 1 billion nor the EBITDA guidance they have shown. And that means a turnaround from profits. I think the profits was 0.8 on EPS in 2017 to quickly negative losses. And then the only thing that can save the stock price is the book value. And you can see here how the stock price has been going up and down, similar trends, short term cycle in the solar industry up and down, up and down. And what saves the stock price in a downtrend is the book value. The book value has been around 20-25 for the last 10 years and in 2015 it really went below that, but in 2017 it stabilized at around 25. Now, if it comes again to the book value, which is 17 at the moment, then it will really be an interesting investment as the downside will be limited, but the upside will be explosive. So I'm waiting for 17 here, 17-20, but I follow hundreds of stocks and I can wait and I'm very happy with just five of those 100 drop to my levels in a year. Just another look at the financials. If they have difficulties hitting those 900 million in revenue, the gross margin might drop from 21% to 15% and then we have losses instead of gains. And then everything changes. All the models the analysts use, changes, negative earnings lead to downgrades, guidance cuts and depressed stock prices. So I wouldn't be surprised if we see 20. It might not happen, but I don't have to invest in any stock that I think has potential. So they expect a flatish market development in China. Their addressable market might not grow at 14% as they expect. It might grow at 10 or it might remain flat and that changes completely their investments. They have invested in growth and now they might not see the profits they expected. So the company is really a leader in specific sectors. It is a good business. It has a lot of cash about 10-12 euros per share, which is the most part of the book value. So it's not a bad business. It has no debt. So it's a good business in a very, very positive trend. But it might not just yet beat the time to invest in it because I'm not going against the market. I like the price to stabilize or to really be below the intrinsic value, give me a margin of safety so that I can wait out one, two, three, four, five years and accordingly when necessary. So this is my discussion SMA Solar. I'm looking forward to your comments. What do you think about the stock? What do you think about my strategy? It is possible that it reverts. The China says, oh, we change our mind. It is possible. But you never know. So we'll see. We'll keep following. Keep an eyes on this stock on many others and then we'll find the best investments. Thank you for watching. Check my research platform for more research in detail and analysis on sectors and on stocks to invest in. I'll see you in the next video.