Visitors Now:
Total Visits:
Total Stories:
Profile image
By The Daily Reckoning (Reporter)
Contributor profile | More stories
Story Views

Now:
Last Hour:
Last 24 Hours:
Total:

Here’s Why We’re Buying the Stocks Wall Street Hates

Thursday, October 20, 2016 7:03
% of readers think this story is Fact. Add your two cents.

(Before It's News)

This post Here’s Why We’re Buying the Stocks Wall Street Hates appeared first on Daily Reckoning.

One of the biggest dogs of 2016 is getting its bite back.

This beaten-down sector is down more than 30% year-to-date. But it’s finally starting to show signs of life as dismayed long-term investors throw in the towel.

That’s bad news for them—but a shining opportunity for your trading portfolio. Right now, you have a shot to scoop up these discarded shares for double-digit gains…

I’m talking about solar stocks.

While almost every other industry on the market has enjoyed at least a couple of days in the sun this year, the skies have turned black for solar shares.

After topping out 15 months ago, the solar industry became trapped in a nasty downtrend. Since mid-2015, solar stocks collectively lost more than 50%. Investors wanted nothing to do with them. They were treating the solar industry as if the sun was about to burn out.

Of course, solar’s prospects have never been better. The sector had simply fallen out of favor with skittish speculators. All it took was some bad news over the summer to send the entire industry into a tailspin…

SunPower Corp. (NASDAQ:SPWR)—a company that earlier this year was at the very top of our solar comeback list—dropped a “guidance bomb” just a few short months ago. The company alerted shareholders that it expected to lose $175 million in 2016. Analysts were expecting earnings approaching $50 million.

This massive miss turned the entire industry on its head. At the time, we told you SunPower’s flop would kill any hope for a quick recovery rally in solar. The damage was swift and brutal. SunPower’s stock dropped as much as 50%. But it wasn’t the only casualty. Sellers whacked the entire solar industry again in September when volatility returned to the markets.

But the sun is beginning to peek through the clouds this week…

Solar stocks are starting to bottom out. That means we have a shot at hopping onboard for a powerful snapback trade.

Just look at this beautiful bottoming pattern taking shape in the Guggenheim Solar ETF (NYSE:TAN):

turningonthelights-dr

This ETF’s September swoon perfectly tagged the June lows and set the stage for this week’s rally. Once the last seller was pushed out last month, TAN marched back above $20. This small breakout has been months in the making. Now it could set the stage for an even larger run.

Solar continues to stir up attention all over the map. It’s impossible to block out all the hype around Tesla’s SolarCity acquisition, a company that’s recently teamed up with Airbnb to get hosts to equip solar energy.

Solar initiatives are also hitting ballots across the country next month. In just a few weeks, Nevada voters will decide whether or not energy will be purchased from their choice of suppliers.

Sonnen— a major German manufacturer of solar energy storage devices— is gearing up to go public after major breakthroughs in top-growth markets.

Solar shares may have taken a vacation this summer. But fresh hype is creating a huge opportunity for new profits on low-carbon energy.

Sincerely,

Greg Guenthner
for The Daily Reckoning

P.S. Make money from this unbeatable trend — sign up for my Rude Awakening e-letter, for FREE, right here. Never miss another buy signal. Click here now to sign up for FREE.

The post Here’s Why We’re Buying the Stocks Wall Street Hates appeared first on Daily Reckoning.

This story originally appeared in the Daily Reckoning . The Daily Reckoning, offers a uniquely refreshing, perspective on the global economy, investing, gold, stocks and today’s markets. Its been called “the most entertaining read of the day.

Report abuse

Comments

Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Top Stories
Recent Stories

Register

Newsletter

Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.