The Oxen Report: Let’s Go Midterm and Longterm For Day #5 in the Red

I truly hope next week brings us a different result. We are currently involved in CSUN, FSLR, and KKD. Each position has held up in the market’s fifth straight day of declines because they are solid investment opportunities. Monday morning, CSUN is going to report earnings. The company has gotten no love moving into earnings like other solar companies, so I will continue to hold this and expect big things for it. FSLR is only down 1.5% for us, so there is no reason to take that loss. KKD is at the 3% stop loss area right now. If this was just a random one day decline, I would say let’s give up on this position. We have held this through three straight days of red. On a green day, this will soar. Let’s hope that is Monday. We are holding all. I will only stop loss KKD if it gets to 5.30 or below.

Since everything has taken quite a hit, there are some compelling midterm trades moving into next week and we will also finish the Longterm Rating Report setup on 1-2 more of our current positions. We have transferred all of the old Longterm Positions into Ratings now, so it is time to start on some new Ratings. If you have an idea…post below.

Midterm Trade of the Day: Suntech Power Holdings Co. (STP)

Analysis: Why do I continue to be sucked into solar plays? They always fit my criteria and scanning process because they are opportunities for growth from unneeded undervaluation. Suntech Power is the latest victim of my Midterm Trade. The company is slated to report earnings on Wednesday morning, and they look very strong for major growth moving into earnings. The company is slated to report earnings around 0.23 EPS vs. 0.16 one year ago.

What do I tend to want to see in a Midterm Trade? A stock that is undervalued or has dropped into the point where we are going to enter the stock equipped with a lot of potential and market reasoning behind why it should rise. Suntech has a lot of both. The stock has dropped 7% since the beginning of this week, which has pushed it into some undervalued levels.