Evergreen Solar (ESLR)

Company

"Evergreen Solar, founded in 1994, develops, manufactures and sells solar power products, primarily solar panels, that provide reliable and environmentally clean electric power throughout the world. The three markets the Company serves are: wireless power, rural electrification and grid-connected applications. The Company expects to exploit its proprietary and patented technology to produce distinctive products, to reduce manufacturing costs through lower materials use and streamlined processes, and to manufacture internationally for global market penetration. The solar panels produced by Evergreen Solar incorporate proprietary crystalline silicon technology known as String Ribbon wafer production, which uses approximately half the silicon and avoids the sawing of conventional approaches." (company website)

ESLR 1-year stock chart

Buy

ESLR 2-month chart ESLR 2-month chart

Evergreen Solar is trying to reverse a year-long downtrend. Somewhat uncharacteristically it shot up on heavy volume the day earnings would be announced after the bell. As a result, my limit buy order failed to execute. When earnings were released after the bell, the results sorely disappointed The Street, and when the market opened today ESLR was back down where it was two days ago. I decided to let my order go through. My reading of the earnings report was that the losses were because of the right reasons (ramp up costs) and revenues were up substantially. ESLR gyrated around quite a bit during the session and ultimately ended up down from my buy price, but stopping well short of the 50-day moving average. It remains to be seen how wise this move was.

  • Price momentum (PPO) — sharply rising
  • Trend (ADX) — strengthened over the three months with very strong buying pressure (+DI)
  • Money flow (CMF) — has gone from strong outflow to modest inflow
  • Relative strength (RSI) — strengthened gradually over past month and a half
  • Volume — average is rising, with several heavy-volume up-days

Based on technical analysis, MarketEdge calls ESLR an "early buy." (After the session, MarketEdge cautioned that ESLR was moving "against opinion.")

Sell

gain Bottom line
17%

Evergreen has been climbing rapidly, and today it shot up to $10, pushing way past the upper Bollinger band. I simply could not resist banking the gain. Although the chart still looks very strong, and I expect ESLR to move up even more eventually, such rapid moves are not likely to last, and when it pulls back closer to the trend line I can jump in again.