Survivor portfolio gets an energy boost

I'm trimming some losers and buying some solar.

By Jim Van Meerten Jul 20, 2010 10:57AM
I decided to sell three positions totally on  poor price performance:
  • Fastenal (FAST)
  • Large Cao 3x Bull ETF (BGU)
  • Small Cap 3X Bull ETF (TNA)

 

I replaced them with a solar energy play, Trina Solar Limited (TSL).

 

Everyone seems to want to get on the alternative energy bandwagon, so here is your chance. TSL is currently one of the few private manufactures who have developed a vertically integrated business model from the production of monocrystalline ingots, wafers and cells to the assembly of high-quality modules. They have reached long-term partnerships with technology suppliers in Switzerland, Italy and Germany, which provide the technology for their production facilities in China.

 
Wall Street brokerage firms have found this company in a big way. They have 23 buy and four hold recommendations published based on estimates that sales will increase by 53.20% this year and 11.60% next year. Earnings are also expected to be stellar with a 25.60% increase this year, 8.50% next year and maintain a 5 year compounded annual EPS growth rate of 20.80%.

Their recommendations have caused a price movement of 23.22% last month and the stock hit new highs in 5 of the last 5 trading sessions. Barchart has a 100% short term technical buy signal and an overall 64% buy signal. Their Trend Spotter also signals buy.
The general investors have taken note and on Motley Fool the CAPS members vote 983 to 185 that the stock will beat the market with an agreement vote of 214 to 74 from the more experienced All Stars.

I'm adding this stock to Wall Street Survivor portfolio but because of its recent price movement would advise a tight stop loss at the 50 day moving average of 18.87. Buying points:

  • 100% Barchart short term technical buy signal
  • Gained 23.22% last month and hit new highs in 5 of the last 5 trading sessions
  • Wall Street recommendations based on stellar sales and earnings projections
  • Large and positive investor sentiment

Jim Van Meerten is an investor who writes on investing here and on Barchart Portfolio Blogs. Please leave a comment below or email JimVanMeerten@gmail.com.

 

Disclosure: No positions in the stock mentioned at the time of publication

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