This post was just published on ZYX Buy Change Alert.
Consider taking a small profit and exiting SPWR right here at $11.20 in the pre-market. The trade was based on the information provided by FSLR at its analysts day. Upon deeper study, our conclusion is that FSLR management was not realistic and their projections are removed from reality.
In this overbought market there is not much sense in taking risk, since this was meant to be a very short-term trade.
Those willing to take the risk may consider taking profits on half of the position right here around $11.20 in the pre-market, and raise the stop on remaining half to the zone of $10.83 to $10.88.
Yesterday FSLR stock jumped by about $13 on heavy volume. Clearly many market participants believe FSLR management. SPWR in some ways is better positioned than FSLR. Further, SPWR has a very heavy short interest that raises the possibility of a short squeeze. For these reasons it was appropriate to enter the trade.