The stock market was strong last week and we expect it to be strong again this week. The Solars as a group began moving in earnest – apparently the solar energy demand has turned around and we would now be buying the solar stocks. We like all the stocks listed below, and our favorites are Yingli Green Energy, First Solar, Canadian Solar and Suntech Power. The market is shrugging off the fundamentals like our exploding deficit, weak consumer demand and unemployment, and it seems it won’t address those issues until some major companies get some poor earnings reports or interest rates rise, or our debt gets downgraded. So we are along for the ride….until that time.
The stock picks below are at historical low prices, with good charts. Orexigen has significant insider buying. Cel-Sci (AMEX: CVM, Stock Forum) 1.32 (our favorite penny stock) **looks ready to mount another charge upward. Our normal buying strategy is to buy 40% of a particular stock now and buy 30% more on each 20% decline from our original buy price…for good entry prices.
Our stock picks (Based On Friday, November 13, 2009 closing prices): First Solar (FSLR) 118.30; Sunpower (SPWRA) 26.42; Canadian Solar (CSIQ) 18.45; Suntech Power (STP) 13.72; Yingli Green Energy* (YGE) 13.45; Orexigen Therapeutics (OREX) 7.12; LDK Solar (LDK) 6.39; Solarfun (SOLF) 5.59; Hercules Offshore (HERO) 5.56; JA Solar (JASO) 4.12; and Renesola (SOL) 4.05. This market letter was written on Monday, November 16, 2009.
* Cotton’s “Stock of the Week”
** We hold a position in the stock or option
GO TO STOCKCHARTS.COM TO VIEW THE ABOVE STOCK PICKS
YOU CAN EASILY LOSE 100% OF YOUR MONEY TRADING OPTIONS