The solar stocks have been screaming the past few weeks, as "risk is on" and speculative asset buying is back en vogue. Aside from dry bulk stocks and financials, I am not sure if there has been a worse group since the peak of 2007. That said, if you can avoid the huge downdrafts that seem to follow every rally, they are excellent short term trading instruments, if not really good investments. To that end, LDK Solar (LDK) [which a reader was pounding the table on in comments last week] is up some 35% in 4 days. Boo yah.
Whenever I buy a solar stock, it does a good job of ending the rally... I am the ultimate contrarian indicator in this space. So with that in mind, I am starting a 2% stake in Trina Solar (TSL) which is generally one of the slow movers in the group versus such 'special' stocks like Solarfun (SOLF) or really cool stocks like Evergreen Solar (ESLR). (like a good zombie you can never really kill ESLR)
Nothing quite marks the end of the rally than TM buying solar. ;) If this doesn't stop the QE2 buying binge, nothing can. "I want my solar.com."
Long Trina Solar in fund; no personal position
Thursday, October 14, 2010
Bookkeeping: Restarting Trina Solar (TSL)
Best Of FMMF
- 1: Warren Buffet Piles on Europe
- 2: [Video] Jim Chanos Returns from Europe, Even More Bearish on China
- 3: A Chart to Open Our Eyes - Staggering Changes by Multinationals in Employment Behavior 00s vs 90s
- 4: Futures Blasted on Dexia Woes... and Poor Preliminary China Data
- 5: Market Working to Worst Thanksgiving Since 1932
- 6: Et Tu, German Bonds? Poor Auction Raises Eyebrows