Solar Stocks Status - 5-25-2012; J Peter Lynch Reviews Portfolio
"It would seem that now is the time to buy some solar stocks and see if history repeats itself"
New York, New York - May 29, 2012 - Investorideas.com, a leader in sector research including renewable energy stocks issues for the following solar stocks update from solar expert, J, Peter Lynch. Solar companies are reminded to participate in the upcoming series of interviews with Mr. Lynch.
Read the Peter Lynch solar stocks column at Investorideas.com
Certainly solar stocks have taken a beating over the past two + years we, on the other hand, have done extremely well (see performance note below) picking only the strongest solar stocks and watching them closely and setting appropriate stops. In other words paying attention to the #1 rule of stock trading:
“Cut your losses and let your profits run”
The table below lays out the current situation with solar stocks in general. It does NOT look good.
- Every stock is in a negative trend
- Every stock is BELOW its 50 day and its 200 day moving averages - negative short & longer term.
- Only one stock is making any money – GTAT and on average they are oversold by 72%.
What does this mean for the future of solar stocks ?
It is always difficult to determine when to buy a stock or when to buy into a depressed industry sector, like our current solar sector. But when I look back in history it is sometimes informative to read some quotes by famous investors regarding situations such as this - here are three.
- "The time to buy is when there's blood in the streets." Baron Rothschild
- "I buy when other people are selling". J. Paul Getty
- "Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria". John Templeton
Today's solar market segment certainly fits ALL of these quotes - the blood is running on the streets,
Everyone is selling or has sold and the mood is without question one of pessimism.
It would seem that now is the time to buy some solar stocks and see if history repeats itself - it DOES violate all of the rules I have outlined for you in all past articles, but if one wanted to take a crazy flyer this would be the time. This assumes you are aware that it is highly risky and maybe just a trade.
What I am going to do is to research all of our stocks and some of the related ETF's and come back to you, very shortly, with a list of the stocks and ETF's that I think are the strongest, technically speaking so that IF you want to take a flyer you will at least be buying the strongest technical stocks.
Background Analysis 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.
Performance Note: Solar Stock Portfolio 2010-2011-2012
2010 - + 42.94%
2011 - + 17.56%
2012 - + 18.98%
The performance of the solar stock portfolio over this approximate 2 ½ year period outperformed the S&P 500 by 500% returning the investor100% on their initial investment compared to a total return with the S&P 500 of 20%.
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
Read Peter's technical solar stock reviews:
Disclaimer: The views and opinions expressed in the research published are those of the individual companies and writers and not necessarily those of Investorideas.com® or any of the industry sector portals. At the time of publication, writers may hold positions in the stocks or companies mentioned.
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