3SOF

chart update:

Update:

SOL was a highly speculative stock not long ago when it traded near $30... right now near $7 SOL is trading at unbelievable multiples:
Current 2008e EPS estimate is $1.37 and for 2009e is $2.19, this puts SOL trading at just 3.25 times 2009 earnings (!!!), I would say the stock is no longer speculative and is a value play at these prices.

Quoting HansonWestHouse Research from their last note from a few days ago:
«SOL - Heavily discounted against the sector (8 October 2008)
The global solar sector is down by more than 45% in less than two months. In tandem with wider market atrophy, the sector has been shaken by concerns over reduced levels of subsidy in key markets and high levels of debt. We believe that both of these concerns are overplayed given that the new subsidy limits announced in Spain and Germany are considerably less severe than those proposed by conservative elements and the sector is actually modestly leveraged at present. In a peer group context, we believe that ReneSola is in strong position that is not reflected in the company's rating. We believe that this is wholly unjustified and the current share price represents a strong opportunity to buy.»

Despite the huge fundamental opportunity, this is not a fundamental play, on a rebound scenario and solely from a TA perspective, SOL has the potential to reach it's 50-ema or other upside references.

Trading Plan:
Buy SOL today (10% exposure), we'll be setting a stop near yesterday's lows.

We are buying this pick simultaneous for both Portfolios.

Update:

SOL was a highly speculative stock not long ago when it traded near $30... right now near $7 SOL is trading at unbelievable multiples:
Current 2008e EPS estimate is $1.37 and for 2009e is $2.19, this puts SOL trading at just 3.25 times 2009 earnings (!!!), I would say the stock is no longer speculative and is a value play at these prices.

Quoting HansonWestHouse Research from their last note from a few days ago:
«SOL - Heavily discounted against the sector (8 October 2008)
The global solar sector is down by more than 45% in less than two months. In tandem with wider market atrophy, the sector has been shaken by concerns over reduced levels of subsidy in key markets and high levels of debt. We believe that both of these concerns are overplayed given that the new subsidy limits announced in Spain and Germany are considerably less severe than those proposed by conservative elements and the sector is actually modestly leveraged at present. In a peer group context, we believe that ReneSola is in strong position that is not reflected in the company's rating. We believe that this is wholly unjustified and the current share price represents a strong opportunity to buy.»

Despite the huge fundamental opportunity, this is not a fundamental play, on a rebound scenario and solely from a TA perspective, SOL has the potential to reach it's 50-ema or other upside references.

Trading Plan:
Buy SOL today, we'll be setting a stop near yesterday's lows.

Update:

Positive developments in SOL chart, but still inside current trading range. I'm setting a suggested stop level for now.


Trading Plan:
Hold SOL with suggested stop near $6.05