Wow! Looks like CSUN is on Viagra this morning. Yesterday it was lagging and had me worried. Go ye ole CSUN!
Looks like the Viagra wore off. It was trading great in pre-market and then it fell through the trap door. All the other solar plays are doing well though. Wish the moderator could take out the CSUN from the subject of this thread. Lets see how CSUN reacts today... The thing about these Chinese stocks is that US securities laws cannot be enforced against the executives. Now I dont know how the SEC handles these matters...the Chinese might be tougher then the US SEC. The trading of CSUN these last few days tells me that someone knew about the news today. The price action wasnt convincing yesterday. Hmmmmm....
One thing I noticed about SOLF is that it appears Legg Mason likes that stock. I was wrong on SOLF and its bad news only created a huge buying opportunity. It was a buy at 8 and change and now its over 11 and change. The big guys took advantage of the selloff to get in at cut-rate prices. Well, the news that SOLF put out was really that bad missing estimates when everyone else was beating. This was actually the second quarter in which they missed. It was ugly. Im going to see if the bad news today is really a buying opportunity for CSUN. I want to see a good double bottom before I get in.
IMHO, it would be time to dump SOLF and buy CSUN in high 11's today and then dump it at 12.50 later this week or next.
I'm tempted to pick up a few hundred shares at session lows of 11.50 right now. HMMMMMMMM, decisions Yeah, a tad over done today.
This is my thinking. The last bottom was right at 10.8. The bottom Bollinger Band rests at 10.17. I think its not going down much lower, but there is a chance it will go lower on Thursday. Now, granted, there was probably not that many people at trading desks today and the real decision makers wont be back until next week. When they get back, then they will make the decision whether to buy it up or to sell it more. At these trading desks there are risk management people. They see a press release like this and then decide its time to sell it and with no leadership at the desks before the holidays it will probably be oversold more so then undersold. I bet we will see slightly lower pricing, but that will make it a buying opportunity. If you read over the press release, it wasnt that bad except for the margin issue. Oil is going much higher and the politicos will want to do something. Even though solar and oil really dont closely relate to each other, the fact that oil will be up will increase the politicos pushing for the solar cell. Im going to have say wait for the uptrend to begin in CSUN before buying as it could go under 11. However, one positive sign was all that buying before the close. Hmmmmm...
If you believe oil is going to reach $100 by the end of this year, you are better of going long on oil futures rather than investing in solar power.
ouch on csun...looks like you got filled at $11.58...lol... Anyone care to explain why only csun tanked while other solars were strong...wouldn't tight silicon supply cut into the margins of all the other solar companies as well, except FSLR?
I believe this will be a buying opportunity at these levels. The stock might go a little bit lower to the high 10s. This was a panic selloff based upon an earnings preview press release. The exact reason behind the selloff was because of some vague statements made on tight supply. CSUN had traded quite lethargicly before the press release which tells me that the news was at trading desks before the general public knew about it. Then when the news hit, the sell-off began. Think of it this way. All the major players are gone from the trading desks before the July 4th holiday. Then the press release comes in which seems negative. There is a risk manager standing over the traders in the trading room ordering them to sell off the shares in CSUN and without any major leadership at the desk they do so in kind. When the holiday is over and the leadership is back, CSUN will be bid up again. I saw a lot of buying actually in the last 30 minutes of trading. I do give one warning to those reading this thread. There is a chance it will go lower, but all the bad news is now priced into the stock. The earnings call in August probably wont take it down further and the street will expect tighter margins for the call. Im not sure why the company made this pre-release. I suspect that they didnt want to be like SOLF or JASO which did not warn before the earnings call. In any event, despite the JASO tight margins warning during their conference call, their stock has nearly doubled. SOLF went to 8 in change and now trades at over 11. I suspect this event will be a buying opportunity, but wait until CSUN bottoms and starts turning up which can happen very quickly. I see CSUN as a 22 dollar stock in the times to come. 3-6 months time.