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SPWR...Why The Stampede?

|Includes:Apple Inc. (AAPL), CY, SCTY, SPWR, STP, SUNEQ, TSLA

I have absolutely no clue why the stock traded the way it did today...especially after the company reported terrific quarterly earnings...The one possibility that may have caused today's panic selling is margin calls. (Thanks to my anathema for margin trading, I gravitated towards stock options which, as we all know requires 100% cash...)

For what it's worth, I saw today's swoon as an incredible buying opportunity that just could not be passed up...I ended up buying an additional 1800 CALL contracts today, to augment my already substantial position in SunPower options...

I will share an article that closely mirrors my thinking on today's price action in SunPower's stock...It was written by Travis Houim for the Motley Fool:

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of SunPower (NASDAQ: SPWR ) dropped 14% today after reporting earnings that crushed expectations. Wait... what?

So what: Revenue fell 9.3% in the quarter, to $576.5 millio,n and GAAP earnings per share were $0.15. On a non-GAAP basis, which is what Wall Street compares against, revenue was $650 million, and earnings of $0.48 per share crushed the $0.11 expectation.

The best news is that full-year non-GAAP guidance was increased from $0.60-$0.80, to $1.00-$1.30.

Now what: The fixation of the market today seems to be revenue guidance, which was for $550 million to $600 million next quarter, versus a $682 million estimate. But I'll also note that the analysts who set those estimates ran out and upgraded both SunPower's ratings and the target price of the stock. Northland Capital Markets was most aggressive, putting a $38 target price on SunPower's shares in the next year.

I think this move is a blip in the long-term success story that is SunPower. Solar companies have struggled making a profit, and now that SunPower's profit is crushing estimates, the market shouldn't be turning its attention to revenue, which is a nearly irrelevant figure unless it's put into context. Revenue can be volatile, and with a strategic shift from huge systems to more leases, we should expect revenue to fall. In my opinion, this is still the best stock in solar, and the second-quarter profit proves exactly why.

www.fool.com/investing/general/2013/08/0....aspx

DISCLAIMER: All postings made here are strictly for my personal record keeping and in no way, shape or form, am I even remotely suggesting others to follow my Buy and Sell moves. Trading options is definitely not for the faint of heart as one's portfolio can move up, or down, anywhere between 10%-30% during a single trading day. Feel free to follow my progress here, but PLEASE do not follow my moves. However, if, in spite of all my exhortations, should you decide to do so, be advised that you, and ONLY YOU will be responsible for any losses that you may suffer...In other words, the onus is strictly on you. On the other hand, if the move(s) result in a profit for you, I am open to discussing a split. ;-)

Disclosure: I am long AAPL, CY, SCTY, SPWR, STP, SUNE, TSLA.

Stocks: AAPL, CY, SCTY, SPWR, STP, SUNEQ, TSLA