While we remain skeptical of the entire alternative energy sector in the near term, the chart pattern formed by Trina Solar (NYSE: TSL) proved irresistable. The China based manufacturer of photovoltaic (PV) modules worldwide has a chart pattern that indicates heavy accumulation taking place. A “mini” cup & handle formation within a larger ascending triangle formation seems like a good place for a speculative investment.
Dean Foods (NYSE: DF) has been hit hard over the past few years. The dairy product manufacturer has seen its stock price decline from the mid $20′s to just $10.40 as of today’s close. While the dairy industry has been hard hit with high input costs and slim margins, comments made during this quarter’s earnings release indicate stabalization.
Gap (NYSE: GAP) is a clothing retailer that has been volitile lately. The company experienced a steep sell off in early January, dropping from $22.41 to $18.94 before bottoming. Market trading action caused a small sized gap in the chart near $21.50. We decided to get short with a small sized put option after the gap was filled.
China Agritech (CAGC) is a manufacturer of liquid fertilizers in the People’s Republic of China. The company has come under scrutiny in recent trading for securities fraud allegations regarding the size and scope of its business. Short sellers have taken hold of the company, sending shares down from their peak of $30.75 to just $7.44 per share in recent trading.