Solar Stocks Commentary with J Peter Lynch; Market Continues to turn Positive
New York, NY - January 30, 2012 (Investorideas.com renewable energy stocks newswire) www.Investorideas.com, a leader in renewable energy and cleantech stock research for independent investors issues market and solar stocks commentary from solar expert, J. Peter Lynch, a regular columnist at Investor
New York, NY - January 30, 2012 (Investorideas.com renewable energy stocks newswire) www.Investorideas.com, a leader in renewable energy and cleantech stock research for independent investors issues market and solar stocks commentary from solar expert, J. Peter Lynch, a regular columnist at Investorideas.com
Solar Stocks Commentary with J Peter Lynch at Investorideas.com
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As I mentioned in my last article most of my indicators (technical) have turned positive and despite all the terrible news in the press about the U.S. economy and in Europe what appears to be happening NOW is a buying opportunity.
There is an old saying that a rising tide lifts ALL boats.
The solar sector has literally been destroyed and NONE of the stocks in our solar stock list have given a strong longer term buy signal � but I have gotten so many e-mails regarding what to buy if an investor wants to �bottom fish� in the solar area.
I took a look at the sector over the past few days and we �bought� (simulated, not actual) the following 5 solar stocks yesterday (1-10-2012) at the close these are the best five stocks, in my opinion, if you want to take a chance and bottom fish in the solar industry sector. But keep in mind this is a trading play and should be classified as higher risk money. An additional positive note - all five of these stocks has given a short term �buy� by trading above its 50 day moving average.
The portfolio has done extremely well in only 3 weeks and certainly it would not be a terrible idea to take all your profits or at least sell � of your positions. We are going to set very close stop orders (orders to sell) at roughly 10% below the closing prices on Friday to protect our profits and yet also let some of these profits run if their respective stocks continue to climb.
2012 Solar Portfolio
Stock Buy Price # shares Current Price % Gain
csiq 3.1 1,000 3.92 26.5
gtat 7.99 1,000 8.75 9.5
ldk 4.68 1,000 4.91 4.9
tsl 7.3 1,000 8.67 18.8
yge 4.12 1,000 4.54 10.2
Portfolio Gain 13.20%
** All stocks purchased at the closing price on 1/10/2012
** Current prices are the closing prices on Friday the 27th
The General Markets
At the current time the general markets are short term very overbought (i.e. run up too far to fast) I would not be surprised to see a 5% or so correction here and then the market continue its upward movement. Most of my longer term indicators are positive and getting stronger, so I would only expect the next move, if downward, to be a short term move.
In addition, the solar stocks seems to be getting a little attention because of the oil situation and all the new "noise" in the middle east with Iran - this could give our stocks a little bit of a run up and we are positioning ourselves (with the stops) to cut any losses short but also potentially take advantage of a short term run up in prices due to oil related news by letting our profits run higher.
Background Notes
Keep in mind that there are two basic types of equity (stock) analysis. Below are a brief description of each and its primary purpose:
Fundamental Analysis - this is the analysis of the fundamental financial condition of a company to identify which stocks you may want to buy when the timing is right. This form of analysis will give you NO indication of the best time to buy a stock or sell a stock.
Technical Analysis - this form of analysis will tell you "when" to buy a stock and when to sell the stock. It will do this by showing you (in chart format) the basic interaction of supply and demand and when the two change and shift which will indicate a time to buy or a time to sell.
Mr. Lynch has worked, for 35 years as a Wall Street security analyst, an independent security analyst and private investor in small emerging technology companies. He has been actively involved in following developments in the renewable energy sector since 1977 and is regarded as an expert in this field. He was the contributing editor for 17 years to the Photovoltaic Insider Report, an early publication in PV that was directed at industrial subscribers, such as major energy companies, utilities and governments around the world. He is currently a private investor and has from time to time been a financial/technology consultant to a number of companies. He can be reached via e-mail at: SOLARJPL@aol.com. Please visit his website for the promotion of solar energy � www.sunseries.net.
Read Solar Stocks Commentary with J Peter Lynch at Investorideas.com
http://www.investorideas.com/PL/
Read Peter's technical solar stock reviews:
http://www.investorideas.com/PL/Solar-Stocks-Review.asp
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