http://www.energyandcapital.net/newsletter.php?date=2008-03-28
Solar Power Stocks
2008-03-28By Jeff Siegel
I'm not much of a gambler, but I have to say--there's nothing like taking a risk and coming out on top.
Especially when coming out on top means banking fat profits.
A couple of weeks ago, while the Dow was struggling and many stocks were trading at near record lows, the doom-and-gloomers were quick with their "I told you so" arguments regarding solar power stocks.
As if solar was the only sector hit by the market meltdown.
You know the whole song and dance:
· Solar's too expensive!
· Solar's nothing more than a bubble about to burst!
· Solar's a pipe dream!
Blah, blah, blah.
The only good thing about all this nonsense is that when the overall market is down, this kind of refrain has a tendency to support panic selling--thereby leaving exceptional entry points for those with the cojones to go for it.
Here's what I'm talking about:
What's Really Going On With Solar Power Stocks
On March 17, solar stocks got hammered along with the rest of the market.
But while some chose to use this as an excuse to bash one of the most lucrative market sectors most of us will ever see, others were loading up in anticipation of the next big move.
Because, bottom line: solar stocks were trading at unreasonably low levels.
So the smart traders piled in.
In fact, here's an email I sent to our Alternative Energy Trader members the very next day:
Now take a look at the charts for these three solar power stocks since that email was sent:
In just one week...
- Sunpower (SPWR:NASDAQ) has delivered gains in excess of 36%
- Suntech (NYSE:STP) has delivered gains in excess of 32%
- Trina Solar (NYSE:TSL) has delivered gains in excess of 13%
Of course, not everyone has the time to trade stocks like these.
But even those investors that are long on solar have come out way ahead over the past week.
Here are the charts for two solar stocks (still open positions) in the Green Chip Stocks portfolio that also blasted off after hitting unsustainably low levels:
In just one week...
- GCS Solar Stock #1 has delivered gains in excess of 23%
- GCS Solar Stock #2 has delivered gains in excess of 48%
And take a look at these two solar stocks (still open positions) that are in the Alternative Energy Speculator portfolio:
In just one week...
- AES solar stock #1 has delivered gains in excess of 55%
- AES solar stock #2 has delivered gains in excess of 50%
Incidentally, that second stock is one that Nick Hodge recommended on March 17--the very day most were in full-blown panic mode.
Too bad we're making an absolute fortune from it!
Any investor not playing this sector is a fool.
To a new way of life, and a new generation of wealth . . .
Jeff
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