Bookkeeping: Adding to Trina Solar (TSL) on Long AWaited Breakout

I've been waiting for this move for months. I am adding materially to Trina Solar as it crosses over 50 day moving average on potential for technical breakout. Trina has shown a big change in fundamentals last quarter [Mar 4: Long Suffering Trina Solar Finally Gets Some Relief] which was not recognized by the market - and Citadel (the pre-eminent hedge fund in my opinion) has taken a stake as well. I think mid $40s is only a matter of time; I was waiting for a confirmation move on the chart which we appear to be getting.

I am buying 1200 shares of Trina Solar in the mid $35s.... this is big upswing which takes the stake from 0.9% to 4.9% of fund.

We also have some nice polysilicon news for the name

• Trina Solar Ltd. said Wednesday it has entered an eight-year agreement to receive polysilicon supplies from GCL Silicon Technology Holdings Ltd. at predetermined prices. GCL will provide the Chinese solar-power company with enough polysilicon to produce about 2.6 gigawatts worth of solar modules.
• Polysilicon prices have risen sharply in recent years, as the solar industry expanded rapidly. Long-term agreements with fixed prices are seen as favorable because they limit a company's exposure to spot prices, which are much higher.
• Trina did not release financial terms of the agreement, though Chief Executive Jifan Gao called them "favorable." Gao said in a statement that the company is in a "strong position" to expand margins because of its polysilicon agreements, plans for in-house polysilicon production and other cost savings.
• Deliveries from the GCL contract will begin this month. Trina has now secured about 95 percent of its estimated polysilicon requirements for 2008.

On a fundamental basis, Trina Solar is the most undervalued stock in the space in my opinion. Finally the market seems to have waken up to this, and when these stocks do move, they can really scoot. I was scratching my head why these stocks had not moved yesterday when speculative juices were ramping...

Long Trina Solar in fund and personal account