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Solar Power Stocks Take A Beaten

In the last week or so the solar power companies have been getting down graded from several different analysts. The reasons vary from one another, but the message is still the same… stay away from the sector. The alternative energy sector has made some good gains in recent months, but then again almost everything has made gains since the lows of March.
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The leaders in the sector have really taken a turn down from where they were just a few months ago. First Solar Inc. (FSLR:NASDAQ) was as low as $100 in March climbing nearly 100% to it recent high of over $200 in May and has really taken a beaten since then.
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That’s not the only solar companies that has fallen out of flavor with the analysts. Typically when the price of oil starts to rise, the alternative energy sector gets some headwinds because of the fact that it makes cost effective sense to invest in the solar and wind power stocks. The problem here seems to be that the competitiveness of the sector has gotten really tight causing companies to cut back on their own pricing to compete with others in their market. Each of these companies are trying to get a bigger market share and to do so, pricing and profit will be taking a back seat at the moment.
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Here at Beating The Stock Market, I’ve been very positive about the alternative energy sector and have made plenty of money in trading these stocks. When news like this comes out from several different sources, I tend to stay away from the sector. Too much negative views on a sector does not sit well for me and I will wait and see before I jump back on board with solar or wind power stocks.

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Are You Ready To Take Adventage Of The Markets

Typically the months of August and September are the two least to make gains. As people are going on their last minute vacation before the summer is over, the stock markets seem to take a break. The volume is lower than any other time of the year.


As you can see by the last couple of weeks, the markets have seen a stall in gains compared to the other four months. The overall markets are holding to their levels, but quite few good stocks have come down from where they were just a little while ago. I don’t expect them to stay there very long. At the present time, the markets are showing that they are at a good resistance level. I also see that it’s more of a bull than a bear scenario going on.


The correction in the markets seem to be happening on the individual stock levels, so I’m getting ready to go all-in. I see some of the companies that I’ve been recently coming down to levels I consider a good entry point. If the stocks do fall back after I start building a position, that won’t be a problem since I always buy in increments.


So my question to you is… Are you ready to get in (if you’re sitting on the sidelines), or build a bigger position in the companies that you own already? Do your research on those companies now, so when the time is right to get in, you will know which ones will be a great investment. If you are up more than 20% in a stock already, you might want to take profit now and get back in after the pull-back.


If you’re looking for some free advice or trading programs to help improve your trading, please check out the free trial of Jim Cramer’s Action Alert and/or Trading Solutions free trading program.
Due diligence and research is vital to surviving in the markets, so be disciplined in your trading style and remember… Happy Trading.

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Penny Stock Alerts

If you spend any time researching companies that you’re thinking of trading stock in, I’m sure you’ve seen the advertisements, the pop-up windows and the e-mails informing you of different websites that will give you alerts on penny stocks they believe will make you some great gains.

The only problem that I see with that is you really don’t know the person who is running the website. Quite a few of them are actually fund managers that use you to help pump up the price of the stock to help them make more money. Of course I’m not saying that all of them are like that but you need to be aware of who you might be dealing with.

I myself subscribe to many different alerts from websites just to see what’s going on. In many cases I watch their picks to see if they’re going to be right or wrong. Unfortunately many of the picks don’t really go anywhere after the initial jump. How I see it, many of these website/traders position themselves in a company, start hyping it up and tell their readers/subscribers that it will do great for them. As the price goes up they start scaling out their position. Most of the stocks that I’ve been watching over the last two months from these alerts would have lost me thousands of dollars. Don’t get me wrong, I would have made money on some of the picks, but not as much as I would have lost.

The latest stock that I’ve seen being pushed is Biocentric Energy Holdings (OTC:BEHL.PK). I saw this being pushed by several different websites. I figured that this too would be another pump-and-dump fiasco as I’ve seen before. I even saw some talk on a penny stock forum of how this is being pushed. The stock price was $0.023 per share when I first received the alert, after three positive days where it went to $0.07 I was waiting for the price to fall. To my surprise, it still hasn’t started to lose momentum. As of this morning, the price per share was to to $0.14, a gain of over 500% in just a week or so. If you were one of the many that jumped into this investment, you need to get out now. I’m telling you that this will not be in the category of “best penny stocks 2010”. The company doesn’t have anything really going on to sustain the gain in price.

I’ve talked about it before and said that buying penny stocks can be very rewarding, but at the same time you can lose a ton of money. Be careful when you trade penny stocks, even more so than you would with bigger cap companies.

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The Dow At 9000, Where Do We Go From Here?

Who would have thought that this could have happened so soon? Either way, it was reached. The DOW close above 9000 (9069.29 to be exact). The S&P 500 has been on a tear, closing at 976.29. Lets not forget that the NASDAQ is now at 1973.60. The past two weeks of trading have been great for the markets.
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With that being said, what are we to expect in the coming weeks? If you’ve been listening to the talk on the street, you’ve heard both sides of the possibilities. “It’s only going to get higher” or “the markets are going to correct themselves”. Those are the only two choices.
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After listening to all the opinions that where flying today, I would have to agree that the markets are due for a correction. How can it not? I don’t know about you, but I don’t really see a reason to be all optimistic about the stock market. Add on to the fact that many traders and investors have made a lot of money in the last four months. There will be some profit taking very soon.
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With all the talk about health care and the Cap and Trade bill, if these two bills pass, corporations are going to find it hard to keep making the earnings that the investors want to see. The taxes that will be imposed onto these industries are going to break them as well as the country’s GDP.
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In the last few months I’ve made some great gains in the markets and I’m not willing to give them back anytime soon. At this time I’m sitting more than half my portfolio on the sidelines, while I wait for the other shoe to drop (and it will). Don’t get me wrong, I do believe that there will be some gains to be made in many other sectors and that’s why I’m watching the tech sector. They (tech sector) don’t have the government issues to deal with, like most of the others ones.
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Which ever way you plan on playing the markets in the coming weeks, do your due diligence.

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Great Gains So Far For This Week

I’ve been busy this week with many things, so keeping an eye on the stock market hasn’t been easy for me. Well this afternoon I’ve had the time to see the progress for the past few days and I’m amazed at the gains that have been made this week by the major indicies.
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I told you in a recent post that I jumped out of basically everything until the markets correct themselves again. We’ve had too much of a run up and I’m skeptical. Looking back on the past few days that I missed, I noticed that there were good opportunities to make money on stocks that I sold and they went on a roller coaster ride afterward.
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The one I want to talk about is Agnico-Eagle Mines Ltd. (NYSE:AEM), a stock that was as high as $62 only five weeks ago. I made the right choice to sell off my position. After it corrected by 10% I bought a small position back. I let it just sit there not bothering to pick up more as it continued to drop. Unknown to me, I wasn’t paying attention to what the stock did this week as it dropped down to below $47.50. If I was aware of the situation, I would have back the truck up so fast to grab shares at that price. That was Monday morning and now the price per share is $55 (as of 3:45pm). A 16% gain in just three trading days.
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In all the times that I’ve traded AEM, I’ve always made money. This would have been great to profit from, but I’m not going to drive myself crazy because I didn’t get into this play. There will always be more opportunities to make money, but if you want to stay sane while trading stocks, you can’t sit there and think of the “what if’s”.
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Agnico Eagle has been trading within a range of $45 to $60 (which is a nice swing gap) this entire calendar year. When the price drops below $50 I buy quite a bit, as it goes above $55 I prepare to sell. This week was a good opportunity to do exactly that and I’m OK with the fact that I missed it.
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Try to keep that in mind as you go through your portfolio.

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Update On NRG Energy Inc. (NYSE:NRG)

What a difference a day makes. Last night I posted about NRG Energy Inc. (NYSE:NRG). A company that I’ve been trading for the last month or so. I’ve made some nice gains and I still feel the company’s stock will continue to rise considering the alternative energy needs in this country.

Something that I did over look in the post is that NRG Energy is in a middle of a hostile take over bid from the country’s largest nuclear power company, Exelon (NYSE:EXC). In October, Exelon offered 0.485 of one of its shares for every NRG share. Many of the NRG investors were not pleased with the offer and stated that Exelon had to raise it’s bid for the independent power producer.

News came out this morning that the company will raise it’s offer by about 12%. The issue is now is that NRG’s stock price has risen above the offering price from Exelon. So now Analyst are suggesting that it means that Exelon would most likely have to materially raise it’s bid to get NRG shareholders support.

At the close of last night (July, 2009), Exelon’s stock price closed at $51.56, which puts it’s bid for NRG at $25.01 a share. NRG shares closed at $26.05 yesterday.

NRG’s stock price opened Thursday at $25.30 and has dropped as low as $24.88. It has bounced back a little, but after today jobless claims and other economic data releases today. I don’t expect any stock to do really good today. We are going into a three day holiday weekend so let the rest of this eek play out on it’s on and see what bargains we’ll have next week.

Happy Independence Day.

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Nuclear Energy Stocks

There are many different stocks out there that fall under the term “speculative”, of course that not really the case when it comes to the electric utility stocks. I just want to write about a sector that seems to be building up steam (literally and figuratively) later that needs to be addressed.


A little over a month ago I started looking for a new speculative stock to trade (oppose to invest in) and I happen to stumble over a company that is in the electric utility sector, but because it is mainly a nuclear play, I thought it would be a decent opportunity. I looked around at other companies that are also trying to expand their nuclear plant output, but this one stuck in my mind.


I invested a small amount (like I always do on speculative stocks) in the company after reading their earnings reports and reading the transcripts from their conference calls. Since then the stock price has moved up over 30% in just 5 weeks.


What really made me think that I had to write a post on it, was the fact that the company was profiled on a CNBC special this week titled Nuclear Option. In the show there was a lot of positive talk about the use of nuclear power being used in this country. There hasn’t been a nuclear power plant built in the United States in over thirty years, but now there are two being built as I type this post. One in Texas and the other in Maryland.


The company that I’m referring to is NRG Energy Inc. (NYSE:NRG). The company looks good to me and I will be buying more of it on the dips. I do expect it to lose some value because of profit takers as well as the overall market taking it down some as the DOW and the economy take a roller-coaster ride throughout the remaining part of the year. The chart looks healthy and with the price of oil expected to go back up, it will continue to rise.


As with any stock you look to invest in or trade, you need to do your own research to see if it’s right for you.

Nuclear energy stock market


Happy Trading



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Research In Motion (NASDAQ:RIMM)

Yesterday I spoke about building a position in Research In Motion (NASDAQ:RIMM). My first buy-in was at $76.25 when the price dropped. Share price opened this morning at $77.86 and within the first five minutes of trading, it was up to $78.40. Unfortunately that was as high as it would go. Minutes later it fell to $76.13, where it would continue to bounce within that range.

Research In Motion was scheduled to release their first quarter earnings report after the closing bell today. I was looking for some more upward motion from other traders getting on board in expectation of RIMM beating the street.

Shortly after the bell, RIMM released their report. RIMM earned $1.12 per share for the first quarter on revenue of $3.42 billion, compared with $482.5 million or 84 cents on revenue of $2.24 billion a year earlier. Included in the results were non-recurring items. $96.4 million relating to certain employee tax liabilities along with a gain of 175.1 million primarily as a result of the enactment of functional currency tax rules. While the analysts were only expecting $0.94 on revenue of $3.43 billion, RIMM earned $0.98 per share.

What I didn’t expect was after the company beating expectation by $0.04, the stock dropped more than 6% in after market trading. By the time after hour trading was done, the stock moved back up to $76.06, just off by 0.5% from where it closed at 4:00pm today.

One thing that I wish I was able to do was to buy more shares when it fell to $73 shortly after the release. In April, Rimm beat expectation by 7% and since then the stock price has moved up 55%. Today they beat it by more than 4% and it moved no where today. Many investors and traders were looking for more and the knee-jerk reaction was to sell. The more they were looking for was in RIMM’s second quarter guidance. RIMM”S range for earning in the next quarter is $0.94 to $1.03 per share on revenue of $3.45-$3.70 billion. The mean analyst estimate is for 97 cents on revenue of $3.61 billion. After the conference call, I guess people realized it wasn’t as bad as it originally sounded.

With the information I have on this company, I believe that RIMM is still fundamentlly sound and will continue to grow. I will continue to buy into RIMM under $80, after that I will sit back and watch the gains from this great company with a fantastic product. The BlackBerry is a great smartphone with many different applications to do the things you want to do. As a matter of fact RIMM just released their latest BlackBerry model, the Tour, earlier this week.

Jim Cramer doesn’t call this company one of the four horseman of the tech sector for nothing.

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Automakers Running Out Of Gas

On Capitol Hill the battle heats up as the U.S. automakers sit idle and wait to see what their fate will be. The Republicans are fighting the bill which will not give the Democrats enough votes to pass the bill.
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I agree that they industry shouldn’t be bailed out of the mess that they along with the UAW created. If you follow this blog or have read my previous post on the issue, you know that I say if you can’t run a business properly and profitably then you should be in business.
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Needless to say that the stocks are being hammered today because of the uncertainty of the situation. Which makes it a great buying opportunity for the preferred stocks of GM and Ford. I suggest that you don’t buy it unless you believe that the bill will get passed eventually.
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I’m sure that many of you have been watching this intently to see the outcome, if you have been seeing the whole picture through open eyes and with an open mind you will see that the companies have done this to themselves with the help of the UAW.
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Watch this video and you may see why I feel the way I do about unions and why I feel that they are destroying this country.
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Are The Bulls Charging?

The stock markets have been on a tear for the last three weeks or so it seems. In the last fourteen trading days the DOW has finished in the green for ten of those days. Even though the DOW sit at 8761.42 and was as high as 9000 on Monday, there has been a charge from the bulls that makes you wonder if we have reached the bottom.
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I don’t believe we have, but I do like to think that we did.
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The commodity sector had a beautiful day today and that typically shows that the bottom is near if not here. Basic materials as a whole gained over 5% today with coal leading the way with a gain of over 15%. It goes to show you that the analyst and the “expert” either don’t know what’s going on or that they are not telling us average traders everything. I’ve listened for the last month to them report that commodities are in the tank and will remain there for sometime. So why the rally today? I wish I knew.
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The steel industry has been dropping like a lead balloon, but Cliff Natural Resources Inc. (NYSE:CLF) gained 18% today and is up nearly 38% in just one week. Steel Dynamics Inc. (NASDAQ:STLD) gained 15% today and is also up nearly 60% for the week.

With signs and gains like these, one would think the worst is behind us.
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In the last two weeks we’ve heard that the recession is officially here, so I’m lead to believe that it’s not over. I’m expect a big pull back in these prices as the profit takers come in and remove so of their capital. I’m also looking for the DOW to drop back to the 8000 level in the near future.
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If my readers have any insight to share, please do so in the comments to help enlighten me in any way.

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