Back in February we talked about alternative energy, and specifically Canadian Solar (CSIQ) as the cheapest player in a burgeoning field of photovoltaic solar energy equipment. At that time CSIQ was under $19 and Friday it closed above $32, up over 70%.
My bias in situations like this is to take money off the table as I did with Mosaic (MOS) last year, having bought it at $20 and selling at $40, thus missing the run up over $100. So, with CSIQ I'm letting this sucker ride, although I'd put a stop-loss somewhere around $27.
Energy generation will be an issue for the remainder of the decade and beyond. Looking at the 1970's analogy, we are still only at about 1975 and the a dollar rally should not hurt CSIQ very much-- in fact they may have a better US market for sales with a stronger greenback . Even in the teeth of this current recession, we are still seeing a huge need for non-carbon energy generation and this should increase with the coming panic over global warming As such, CSIQ and Cameco Corporation (CCJ) should continue to be strong holdings.
No comments:
Post a Comment