Seeking Alpha
Profile|
( followers)  
Evergreen Solar Inc (ticker: ESLR) shares were down Tuesday since an SG Cowen analyst said that the Evergreen partnership deal announced this week will reduce the expected profits for 2006. The analyst diluted his estimates for per-share losses in 2006 by a penny to 18 cents and reduced his 2007 earnings estimate by 6 cents to 19 cents per share. Many of the analysts still think this partnership deal is very positive for the company -- they just expect that it will postpone profitability out another year.

The stock was down 5% Tuesday. I have been looking for a good entry point to start a position in this stock and it looks I will be getting there soon. This is where patience is key when your trying to get a good entry price on a stock.

The stock has been a strong mover up for the last couple of months and when you look at the RSI indicator, it is still showing a slight over-bought condition. I fully expect that this downward pressure will take the stock down to the $10 level soon and roughly a 50 on the RSI. I would be a buyer of an initial position in the stock at this level. A move down to the firm support at $8 is also possible and the RSI would definitely be in an oversold position. I would load up on this stock if it got to these levels:



« Any opinions expressed on the Seeking Alpha sites are those of the individual authors and do not necessarily represent the opinion of Seeking Alpha or its management. »

Related:

Source: Evergreen Solar Drops on Analyst Note -- Opportunity for Investors? (ESLR)