1-13-2012
In the past few days, there has been an explosion of sorts in several solar stocks. Why? I have no idea. The point is several investors and large funds must have been attractive to the group, because several stocks have jumped very quickly from very low prices.
The chart of Hanwha SolarOne is just one example. Is this the start of a major new trend? Is this the last chance to buy a solar stock at such low prices? I am not sure of that, but as a speculative play take a look at these stocks over the coming weeks. If the next decline and correction in these stocks is small, in relationship to the large recent gains, instead of going to Vegas and going all in against Phil Ivy, consider a long term play in some of these stocks. Both are just as risky, but one may pay off in a surprise better than the other.
A long in these stocks is extremely risky, but this stock was at $8 in February of 2011. I normally do not look at trades of this nature, but the rally for the past few days has been interesting. There may be something behind the buying spree. I will follow these stocks over time and report on their progress.
