DARTS! DARTS! DARTS!
-To Goldman Sachs for downgrading Solarfun (SOLF) to a sell.
Despite few analyst reports and ratings, this company's stock has been a solar trader's playmate since middle of last year. And now that the solar sector is back in the light for all to see due to the high price of oil, Goldman downgrades the stock? This sent the entire sector down because people tend to listen to G.S., a company whose own managed funds are not all that stellar. Well some have been good but that's not good enough for bragging rights and certainly not good enough to command swaying the market with negative comments when the whole sector is kick'in ass no matter what solar stock you are looking at!!!
Goldman said "the premium valuation of (SOLF) is unwarranted given muted top-line growth and looming margin and cash flow pressure."
I agree totally with the StreetInsider.com who recently said today: "Why follow Goldman's advice on the stock now? Goldman, considered the ax in many stocks they follow, completely missed the run-up in Solarfun Power. Goldman had a Neutral rating on the stock since June 2007, meanwhile SOLF moved up over 100% since that time." And when nearly every one of the solar companies is reporting excellant earnings and/or new sales and supply agreement contracts.
That guy got arrested in Europe for making comments which hurt a stock so I think Goldman should be equally punished for this comment today given their apparent influence on the markets. Though the actual statement could be correct, it turned the whole sector inside out. Wanna bet they're going to BUY Solarfun now??? Huh? Huh? Giving them a nice entry point and as a way to settle the rift with its investors who rightfully don't know why the company was staying away from solar for so long?
If you want to make some money, get into solar and you won't be disappointed. Now the time is ripe for an infusion of cash into the sector due to this G.S. upset today. It has turned a recently too hot to handle market into a limitless buffet line of offerings at a very cheap price. Remember, the China market which is one of the largest for solar stocks, has gotten its due correction already and prices have been reset which is a plus for traders. And again with the stupid move by G.S., the stocks are value priced just for you! Just remember to do your homework first! Fundamentals then the technicals. Honestly though, it will be hard to loose in this market with proper money management stops.
DO NOT LISTEN TO Goldman except to give you a boost on your entry, exit, and re-entry points!
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