Don't Bite The Hand That Feeds You

[tebs213]

Very nice call on GNVC, I saw the after hours action and wished I had some extra funds. The price action in GNVC today is why I like Biotechs. That and international ADR's and ETF"s have been most kind to me since I started trading. Volatility can really be your friend as long as you don't marry or chase a stock, you just have to be sure to take profits.

I didn't have the money for GNVC because I spent all my non-reserve powder on JASO last week, I feel very confident about the future PPS in that one, and it should continue to soar for quite a while. In particular, if management guidance from the Q4 earnings report is confirmed throughout 2010, this could go well beyond any PPS in this range. I think this stock is much cheaper than it should be right now due to fears about German tariff increases for the solar sector. Some background and analysis pre-earnings release:

http://www.thestreet.com/story/10679114/2/ja-solar-solars-first-vital-outlook.html

I believe this to be significantly priced into most solars right now. If this does not end up effecting JASO as management seems to be indicating in their guidance, the upside becomes extremely high. So if you believe in the management here, this is a serious buy. From a technical perspective, JASO and many other solar stocks have had big MACD crossovers happen in the past week. Very bullish sign for the sector, with JASO looking to lead the way right now based on great earnings reported for Q4. Not to mention the fact that short term, the fears about Chinese lending restrictions have made many Chinese ADR's very oversold short term due to the usual panic selling and stop hitting that has been going on over the past month. I expect Chinese and other emerging market stocks to soar starting by the Spring, there is just way too much upside and growth to rationally think otherwise unless something disastrous and unforeseen changes it. However, I am not too concerned short term other than getting free shares right now in JASO, it is shaping up to be one of my portfolio stalwarts for 2010.