The life of Power-One, Inc. (PWER) has been quite the roller coaster. During the tech boom, the manufacturer & designer of renewable power systems traded as high as $90, but at the bottom of the market in 2009 toiled in penny stock obscurity. The recovery has been swift though, and the future is bright for PWER.
From a value perspective Power-One is still attractive with a P/E of 17.26, thus making me more comfortable about this one for a longer time-horizon type trade. While I will continue to trade around a likely core position, this stock is one that I believe can be a long-term portfolio winner.
After more than quadrupling in a three month span last year, PWER has put in a six-month consolidation that looks set to be resolved to the upside. Yesterday the stock began to make noise and broke through the descending trend line. I entered tier one yesterday and am looking to add in the $11.50-$12.00 range for a breakout to new 52-week highs and beyond. The measured move should see it get to $15. I would put a stop around $10.45.
*DISCLOSURE: Long PWER
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