All posts by jimmybob

FSLR – First Solar under $40 on lower guidance

Leave a comment

First Solar issued lower guidance for FY '12 this morning and the market responded,  giving the stock a 20% mohawk and taken to the proverbial WOODSHED.

We have been all over the demise of the solar sector, and todays news is only the tip of the iceberg : (LINK)

 

Quite honestly, last weeks asset sale should have been a clear signal to get the heck out of the stock if you were long, and go short/puts.:
As of today, Sunpower (SPWR) and First Solar(FSLR) remain the last two solar companies trading above the dreaded $5 level. It will only be a few more months before our bold prediction comes to fruition : (LINK)

Its trades like this that can make your year , and ensure your days are spent trading stocks and not flipping burgers.

 

 

The Path Less Traveled

Leave a comment

Making decisions is part of life, and we make them every second of our day.

Do I have Mcdonalds for lunch?

Do I call my mom today?

Do I give money to the bum with the change jar?

Do I SHORT the Euro???

 

Some of these decisions are easy, as human nature to follow the herd down the road most traveled.

Do I have Mcdonalds?: Yes, even though it makes you feel like a pig!

Do I call my mom today? Yes, because it makes you feel like you are a good son/daughter.

Do I give money to the bum with the change jar? No, because you see him with hundreds in his jar every week.

Do I SHORT the Euro? No, because that is the road MOST traveled!

 

 

Every two bit analysts and forex expert has been saying they are short the Euro, and why not. With the impending implosion of the Eurozone, the Euro is sure to come down to parity with the US dollar. It would only make sense with all the debt troubles. But if the market was this easy, we would all be Millionaires. You wouldn't be reading this blog, or subscribing to out site. Heck, i wouldn't be writing about it... But its the EXACT reason why i am.

The Euro isnt going to SHIT like everyone is betting on. Why? Well those are questions to answer somewhere down the road. This market is not rational, and taking the road MOST traveled will sometimes land you in the poor house.

I will have an update on friday, and will bet the EUR has risen nicely against the USD.

 

Disclosure: I Just went long the EUR/USD at 130.22

FSLR – First Solar Selling Assets? Not a good sign.

Leave a comment

When a press release combines Buffet and Billions, the stock attached to that release, is sure to see some upside action. First Solar released news this morning that it was selling its much hyped $2 billion topaz farm project to MidAmerican Energy Holdings Co. This stock has been taken to the woodshed this year, and soared 10%+ to 51.86 in morning trade on the news.

Now folks who read our blog and spend time in our chatroom, know our feelings on FSLR. We have written about FSLR the past few months, and have played her like a textbook. Which means buying puts into a Gap... Which is what we did today.

https://www.optionmillionaires.com/2011/fslr-and-the-solars/

https://www.optionmillionaires.com/2011/solars-the-next-pennystocks/

FSLR still remains a troubled company, and the asset sale confirms that. Folks buying into the hype, were taught a lesson, as the stock closed at $47.99.

We went short via the $47 and $48 PUTS after the open on Wednesday, and our options were up 300%+ on the day. We fully expect FSLR to touch the $45 level before the weeks out.

 

Below is the news from Marketwatch:

http://www.marketwatch.com/story/first-solar-selling-calif-plant-to-midamerican-2011-12-07

By Melodie Warner

First Solar Inc. FSLR +4.08% agreed to sell a solar power plant being built in California to MidAmerican Energy Holdings Co. as part of the solar-panel maker's plans to reduce spending.

The $2 billion Topaz Solar Farm project -- a 550-megawatt photovoltaic power plant being built in San Luis Obispo County, Calif. -- will have the capacity to generate enough renewable energy to power about 160,000 average homes. Pacific Gas & Electric Co. will purchase the electricity under a 25-year power purchase agreement.

First Solar has agreed to construct, operate and maintain the Topaz project for MidAmerican, an energy services provider. Construction is expected to be complete by early 2015.

First Solar said in October it intended to reduce spending next year and was looking at opportunities to reallocate overhead expenses to fund increased investments in research and development, among other things.

The company reported its third-quarter profit climbed 11% but badly missed expectations despite a 26% jump in sales.

Shares were trading 3.6% higher at $47.75 premarket. The stock has fallen 65% so far this year through Tuesday's close.

 

SINA – $67.50 calls @ .40

Leave a comment

SINA continued its downward spiral Monday and Tuesday. We figured a bounce and squeeze was in order, as it has done so in the past. Today finally looks like the time for the bounce, as SINA held $60 and has bounced all morning to $62.50. Should bounce nice the rest of the week. Weekly options are extremely risky, but can be very rewarding as well. Looking at the $67.50 for .40.

DNDN – Halted

Leave a comment

DNDN was once a high flying stock, with hits hyped prostate cancer drug provenge, leading the hype. DNDn went from sub $5 stock in early 2009, to $55 stock in early 2010. Dissapointing sales results and other factors have resulted in a massive sell-off and DNDN has been trading near multi-year lows.Over the last few weeks, the stock has shown some life and with todays news, i fully expect this to be trading over $10 in the short term. As i write this the stock is trading at $8.64. It usually takes some time before folks peel back the onion and see whats going on here, so you should have time to get some calls or go long the stock under $9 before the end of day stampede.

 

 

 

$9 calls are .32 right now, and look to be the play.