Thanks for that article.
I wish you well in your trading.
The author of that article calls himself an "active trader". He likes TSL and FSLR because they have just broken above their 50dma. This type of trading requires very careful timing, jumping on the bandwagon early, then jumping off before the rest of the momentum traders do.
Yes, SOL could go to 30 this year...if everything goes exactly perfectly, and nothing goes wrong. The stock could also go to zero, and be owned by the banks.
The author's comments about the fundamentals are superficial. He says: "Broad energy prices are on the rise", without making any distinction between oil and coal (prices high and rising) and natgas (prices very low, with no upward trend).
He says "Heightened Oil Prices Boost Alternatives". That's just plain wrong. Oil is used for transportation, solar and wind power make electricity. Two different markets, and not switchable.
He says "ReneSola Ltd. (SOL) saw earnings go negative in 2009 due to overcapacity and excessive leverage. But management has turned the situation around..." Again, a very superficial discussion. Is the company no longer heavily leveraged? What are their debt levels? What will the supply and demand balance be in 2011? What are SOL's costs of production, compared to competitors? Where are the numbers?
Of course, none of this matters, if you are making decisions solely on the chart. |
