Our three purchases (ELLI, INVN, SKX) have escaped the market mayham pretty well, for now. ELLI is even up a couple of points. While this is pleasing, we're not taking anything for granted as the Chinese situation is extremely volatile. This is why we haven't bought more and are mostly in cash in the virtual portfolio.
January 2016
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01-08-2016, 02:13 AM
01-08-2016, 02:29 AM
The Federal Reserve may need to raise interest rates more than four times this year if oil prices stabilize, the dollar stops appreciating and inflation surges toward the U.S. central bank's 2 percent target, a Fed policymaker said on Thursday. Fed may need to hike rates more than four times this year: Lacker - Yahoo Finance There are a lot of "if's" here, and we think this talk isn't exactly helping. Is Lacker aware what is happening in China? Well, head and shoulder patterns don't always break out in the way they're supposed to, like with JKS (again we warn, the charts self-updates but today Jan 7 the stock has clearly broken down and is down 9% at $23.30):
Interesting to keep track of this. It's the market leader in China, and despite the market woes there, the air quality is such that they are likely to keep on installing large amounts of alternative power. A remarkable reversal and one we're also keeping an eye on. Down to $1.18 and just as the market started to tank seriously, it's gotten back up and was even green for some time:
01-08-2016, 05:08 AM
A couple of days ago these JKS shares showed a 10% reversal intra-day, although we don't expect that now, but the shares were down 14% whilst we see a rather bright future for solar in China, considering the air quality in the cities, their commitment to limiting CO2 emissions, stuff like that.
01-08-2016, 05:23 AM
Here is the thing. Tomorrow it's non-farm payrolls day. Two possibilities:
Neither is likely to be good for the markets. And in the meantime, we have to see what the Chinese markets, and especially the yuan is doing..
01-08-2016, 06:13 AM
JKS keeps falling, now down 16%, which is sort of curious as a Chinese devaluation would actually give it a shot in the arm and Trina Solar (TSL) another big Chinese solar company is only down less than 2%..
01-08-2016, 06:19 AM
While we're not about to buy these shares, this is nevertheless a remarkable development (SUNE is down 40% for the day at $3.25, at the moment): Analysts are weighing in on renewable energy company Sunedison Inc (NYSE:SUNE) and US biotech company Tetralogic Pharmaceuticals Corp (NASDAQ:TLOG), as shares of both companies fell sharply today. The analysts reflect on Sunedison’s new debt exchange and Tetralogic’s negative clinical trial results. Sunedison Inc Sunedison shares plunged nearly 37% today after the company announced issuance of $725 million second lien secured term loan and a series of exchange transactions. RBC Capital analyst Mahesh Sanganeria believes that all the transactions demonstrate progress in improving the company’s liquidity position and deleveraging balance sheet. Sanganeria noted, “We like the transaction as it effectively provides SunEdison $550M additional liquidity. While the LIBOR+10% interest appears high for the new loan, it is lower than the effective interest rate of the current $170M second lien term loan.” Furthermore, “While the effective interest rate is increasing, the net debt outstanding is reduced by ~$110M (or 33%) after the transaction. It serves the purpose of balance sheet deleverage.” Finally, “Shares are issued at significant premium to SUNE’s current stock price. The common stock issuance effectively deleverages SUNE balance sheet and reduces interest payment.” The analyst reiterated an Outperform rating on shares of SunEdison, with a price target of $20, which implies an upside of 411.5% from current levels. Hmm, $20 price target whilst the shares are selling at $3.25...
01-08-2016, 07:05 AM
Amazing stuff, JKS is down 19% for the day while TSL is flat. JASO and YGE are down 7% and 9%
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