The Market in 2010
Solar Stocks and Market Commentary with J Peter Lynch
Point Roberts, South Salem, New York � January 12, 2011 � www.Investorideas.com, a leader in cleantech stock research tools issues new commentary from solar contributor, J. Peter Lynch, reporting on the "solar seven" stocks he follows and charts.
Solar Stocks Commentary with J Peter Lynch -
Read other articles, Exclusively for InvestorIdeas.com and Renewableenergystocks.com: http://www.renewableenergystocks.com/PL/
As we all know by now, 2010 was not a good year for solar stocks. In fact, the solar sector was the worst performing sector for the year - down an average of 14.6% in a very good year (up 13.87% on average) for the market.
Throughout the year we have discussed that it was important to buy stocks that were the leaders in their sector � i.e. the strongest relative to the market and to their peer solar stocks. In fact, the seven stocks that I picked as the leaders � the solar seven, were up an average of 42.94% more than 300% better than the general market averages in 2010.
This concept of relative strength is one of many forms of stock analysis that one can utilize, but one characteristic of relative strength is that it tends to continue for a longer period of time - i.e. the strong get stronger and will generally lead the group in the beginning of a turnaround and will many times be the last to drop in the beginning of a decline.
So has been the case for our "solar seven" � so far in 2011 they have once again dramatically outperformed the market more than 10 fold - 18% to an average of 1.5%.
Symbol | Current Price | %Change YTD |
JASO | 7.8 | 12.72 |
JKS | 25.94 | 28.93 |
LDK | 12.39 | 22.43 |
SOL | 10.77 | 23.23 |
SOLF | 9.14 | 11.87 |
SOLR | 10.66 | 16.89 |
TSL | 26.32 | 12.38 |
Average Gain | 18.35% | |
Major Indexes | ||
S&P 500 | 1274.48 | 1.34 |
Dow Jones | 11671.88 | 0.82 |
NASDAQ | 2716.83 | 2.41 |
One of the best ways to make money in the market is to cut your losses quickly and let your profits run - i.e. the strongest stocks. In the end you will do very well indeed. You will, on average, have a certain number of stocks with small losses and another number of stocks with larger gains and on average a very successful portfolio.
Mr. Lynch has worked, for 33 years as a Wall Street security analyst, an independent security analyst an investment banker and private investor in small emerging technology companies. He has been actively involved in following developments in the renewable energy sector since 1977 and is regarded as an expert in this field. He was the contributing editor for 17 years to the Photovoltaic Insider Report, the leading publication in PV that was directed at industrial subscribers, such as major energy companies, utilities and governments around the world. He is currently a private investor and advisor to a number of companies. He can be reached via e-mail at: SOLARJPL@aol.com. Please visit his website for the promotion of solar energy - www.sunseries.net
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