If you liked buying LGTO and TYC....
LGTO and TYC in the mid 20's were no-brainers -- both were certain doubles, probably triples, at those levels in the next 6-12 months. Well, here's another ...
Calpine (CPN): Calpine is a cutting edge power/energy company that has gone from $18 to $120 over the past 12 months. It has sold off sharply from $120 to today's close of $81 due to a report of "overly aggressive accounting practices" issued by an independent research company called Center For Financial Research and Analysis (CFRA), Rockville, Md. The allegation has been strongly refuted by CPN's CEO/CFO and this allegation has not been reiterated by any of the Wall Street analysts.
In short, this is LGTO/TYC all over again, a great buying opportunity set up by unsubstantiated or misunderstood accounting issues. Since the stock may continue to fall, I would recommend either tracking the stock and waiting for an "up" day or using a Buy Stop order set several dollars above today's close (if you have done your dd and the stock appears attractive to you, of course). In this way, if CPN continues to sell off (and it may well), you will not "catch the falling knife", and can reset your Buy Stop at a lower price.
At any rate, put this on your radar screen. It is a nice non-tech pick, particularly if you are beginning to assemble a Summer Portfolio before the inevitable summer tech sell-off. |
