Burning a Hole in My Portfolio

STP is hot, up over 10% in the past week, and why wouldn’t it be with news that Wal-Mart is looking to install solar panels on its stores. This, my friends, is HUGE news. I’m still positive on STP even at these high levels, as it will benefit even if Wal-Mart goes elsewhere for their panels.

Once the viability of Solar is proven by the world’s largest company, a revolution of sorts will likely follow. Can you honestly see other companies not adapting? Wal-Mart is not doing this to be eco-friendly; they want to save on the energy bill, while getting some good PR. Again, who wouldn’t?

You can’t look at the price of STP and say to yourself “I’ll wait for a pullback,” But it’s on a roll right now and momentum might make you miss out. Maybe it does pull back a few points and you can scold me for my insistency to get in now, But either way this stock will be above 45 by year end.

As explained in previous articles, STP has the lowest forward P/E for solar stocks, around 60, giving the stock room to run toward the norm for solar of 100. It also has the cheapest labor, giving high profit margins and extra cash to spend on research and development. Finally, with a 10 year contract for silicon, STP is ready for the future.

As a side note, I’m very happy with the way our stocks have been treating us. To track the performance on Whammies better, I created a simple spreadsheet and I will give a portfolio update at the end of each month.

Trade carefully.
-Chris