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Solar Stocks Portfolio 2013 Dramatically Outperforming Market Indexes

FSLR, JASO. JKS, SPWR, WFR

New York, New York - January 25, 2013 - Investorideas.com, a leader in renewable energy stock research for independent investors, issues a solar stocks portfolio update by solar columnist and expert, J. Peter Lynch. Solar stocks included: FSLR, JASO. JKS, SPWR, WFR.

Solar Stocks column at Investorideas.com:
http://www.investorideas.com/PL/
J Peter Lynch

Our 2013 Solar Portfolio with 5 positions currently - 3 initiated on 11/29/2012 and 2 at 2012 year end is UP 38.42% as of the close today (1-24-13) versus the general market averages being up 4.8%.

Symbol

Company Name

Curr Value

Purchase Price

%Change

FSLR

First Solar, Inc.

30.3

27.21

11.14

JASO

JA Solar Holdings Co., Ltd

5.68

4.27

33.02

JKS

JinkoSolar Holding Company Limited

7.63

4.4

73.41

SPWR

Sunpower Corporation

8

5.62

42.35

WFR

MEMC Electronic Materials, Inc.

3.99

2.98

33.89

Average Return

38.76%

SPX

S&P 500

1494.81

4.81

DOW

Dow Jones

13779.33

5.15

NASD

NASDAQ

3153.67

4.44

Average Indexes Return

4.80%

This is very significant out performance and as a result we have to make sure to observe the number ONE rule of investing.

Minimize your Losses and Maximize your Profits

The easiest way to do this is to set reasonable "STOP LOSS POINTS" - these are selling points that an investor sets to automatically take them out of a position to "minimize" any loss.

We will watch our stocks and when a stock drops to a STOP point we will sell, if a position does not hit stop point - we will keep moving up the stop point and maximize our gains in that position by letting it continue to move up.

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For our current portfolio I am setting the following stop loss points to automatically sell 50% of any position that hits its stop point.

FSLR = $29.32, JASO = $5.20, JKS = $6.25, SPWR = $6.50, WFR = $3.30

Note: there are many methods of setting "STOP POINTS" some can be as simple as a percentage loss you feel comfortable with, say 10% - but this is a discussion too complicated for this format. These stop points I set based upon a method of technical analysis I used to pick the stocks.

Market Psychology

The HARDEST THING for investors to do is know when to sell. That is why you have to set specific, non-emotional prices to exit if things do not go right. You cannot allow your emotions to get involved and take over your thinking.

Remember: markets fool the majority of investors by "Climbing a Wall of Worry" which is exactly what it is doing now. Once losses start and keep getting worse when investors get on the "Slopes of Hope" and try and hope that their stock comes back - trust me, the "I hope my stock comes back" technique will NOT work. Trust in your system and follow it regardless of what you think "should happen". Once you try to impose your will on your portfolio you will stop paying attention to what is most important - "what is" NOT what you think it should be.

If you looked at the portfolios of the most successful investors you would, in general, see the following pattern:

Approximately 80% of trades would be either small losses and/or small gains and approximately 20% would be very significant gains. This is exactly how we dramatically outperformed the markets in 2010, 2011 and 2012. We cut our losses when things did not work out and we let our profitable stock run and maximized our gains.

General Market Comments

At the current time the market is starting to get overbought a level which historically results in a pullback in the market closer to the 50 day moving average. As a result of this I have been setting our stop loss points very conservatively in order to make you that when a correction or pullback comes we will still lock in healthy profits.

At this point the general market is weaker than solar stocks as a whole which have obviously been very active lately. But keep in mind that all of the stocks in our portfolio have beta’s of about 1.5 (beta is a measure of a stock volatility) the market has a beta of 1.0, so our stocks are 50% MORE volatile than the market. So, with this in mind, we have to be cautious with the market getting overbought and all our stocks having high beta’s.

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.

Mr. Lynch has worked, for 36 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.

Research more solar stocks on global stock exchanges -and up to 1400 renewable energy stocks at Investorideas.com http://www.investorideas.com/Companies/RenewableEnergy/Stock_List.asp

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