Catchy Title eh?
Well, at market open tomorrow, JASO should be in the range of $15-16 dollars. Today it was trading in the $40s. A 3:1 stock split is happening on this stock before the market open. This is the first solar stock (I believe) to do so, and it has taken quite a beating since the start of the year when it was near it's all time highs of mid 70s.
For those who aren't familiar with this stock, it was the number one IPO in terms of % for the year of 2007. If you got in at the IPO, you'd have made more than 350% in returns. Lucky for me, I've held this stock since its IPO, so I've rode many of its ups and downs along the way. Many of my friends and my dad recommended me to sell it after it doubled to $30 within a few months of its IPO. At end of year 2007, I was sitting on this scorcher that had given me 300%+ gain in less than a year. Not bad for my first full year of trading/investing in stocks, right?
Right, but still lessons have been learned. Looking back, I feel like at the time I was falling in love with the stock and maybe I still am. I mean, who doesn't when they are holding the hottest IPO of the year and you got in at basically its IPO price, right?!
Now to the point. Since then, JASO has basically cut its price in half since its highs at the end of the year in 2007. Stock split tomorrow will bring this stock to around the $15 level. I believe, and hope, that at this low price, JASO will attract new buyers. Fundamentally, JASO's performance in earnings have been great so far, and compared to other solar stocks in the teens, IMO, JASO is the indisputed value in that price range. Other's such as SOLF, CSUN, YGE. JASO is a proven company with higher margins than those other three.
Technically, JASO has successfully tested it's 200 day SMA earlier this week and the slow stochastics indicate a likely oversold condition; RSI is also close to dropping below the 30 level, also indicating an oversold condition. These combined with a new low price for new buyers to come in should be a good catalyst for a move up, or at least a break from the current down trend.
Although I'm definitely not 'expert' enough to give a buy rating, I've very optimistic about the future of JASO.
Any thoughts people? Especially from those who have been in the solar sector this past year?
Also, how do you guys stop yourselves from 'falling in love' with a stock?

