SOLR GT Solar – Emerging Solar And LED Market Leader

by Olivier on March 3, 2011

After monitoring the solar sector for quite a while, I decided to initiate a position in SOLR – GT Solar. There are several reasons why I like the company. The first one is the fact most solar stocks look like they are poised to break out of long bases. This is what Stan Weinstein refers to as Stage One breakouts. FSLR – First Solar is now testing the weekly 30 moving average. The weekly MA 30 has a slightly rising slope, which increases the odds support will hold. If FSLR the solar stock with the greatest visibility then takes out its recent pivot high the stock and most likely the whole solar sector will break out into what Weinstein refers to as stage two. Using FSLR as a proxy makes a lot of sense due to its aforementioned high visibility.

FSLR First Solar Weekly Chart Analysis Stan Weinstein Stage Analysis Technical Chart Price Pattern

The next step is to scour the sector for stocks holding up better and displaying greater relative strength. One stock that fits that description is SOLR – GT Solar. What I like about it is the fact lots of people I follow have started monitoring the solar sector for a possible breakout to the upside. SOLR – GT Solar is mostly not included in those lists. This tells me it has greater potential as it is flying under the radar, is underfollowed and most likely underowned. Another reason why I think it is an attractive stock is its involvement in the LED ( Light Emitting Diode) business. The main reason I feel attracted toward SOLR though is the ‘picks and shovels’ type of business it is in. It is actually providing the tools and machines to the producers in the photovoltaic cell and LED business. This is a great place to be in as it considerably reduces risk.

SOLR GT Solar LED Technical Analysis Stock Price Chart Emerging Leader

Up-to-date SOLR – GT Solar chart on my public list.

The Solar sector overview charts contains the following companies, which I consider to be worth monitoring: TAN – Solar ETF, FSLR – First Solar, SOLR – GT Solar, JKS – Jinko Solar, TSL – Trina Solar, YGE Yingli Green Energy

SOLR – GT Solar has great odds to emerge as a leader in the Solar business. The LED business sure is compelling as far as potential developments are concerned. The stock is highly liquid and has a market cap over 1 billion which makes it extremely easy to enter and exit trading positions. GT Solar is a leading global supplier of polysilicon production equipment, crystalline ingot growth systems and related PV manufacturing equipment for the solar industry. GT Solar is a leading provider of high-quality, large area sapphire material used in the LED, medical, defense and other related high technology industries.

As the leaders go, so goes the entire market. – Jesse Livermore

My public list with all my charts can be viewed here:

Buenas noches!

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