The stock for SunPower Corporation (SWPRa) has remained in a holding pattern, directly under resistance from the 50-day moving average (DMA), in the two weeks since SPWRa provided an empty update on its on-going audit committee investigation. I took this opportunity to dump my current position at break-even. I feel fortunate to do so after getting blindsided by the accounting issues and then adding to my position upon the successful retest of the March lows.
For much of the year, I wrote about waiting until the Fall to start building a long-term position in SPWRa. After this experience with SPWRa, I am once again left with the assessment that the solar sector remains dominated by stocks that are trading vehicles and not investment opportunities.
*Chart created using TeleChart:
Trina Solar (TSL) and Canadian Solar (CSIQ) are the top solar performers for the year. I have yet to get a lower-risk, buyable dip on either one. Until then, I will continue to wait and review the progress of their business prospects. However, if past is prologue, these two stocks will NOT be the top solar performers in 2010…
Be careful out there!
Full disclosure: No positions
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