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I used to run a limited partnership, boutique hedge fund in the 90s. Retired in 2000 and moved from New York City to Toronto, Canada, got married, raised a family and basically settled down. After a few years in Toronto, my wife got tired of the city’s 8 months of cold weather and insisted that... More
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  • SunPower...Has The Shine Faded? 62 comments
    Sep 5, 2013 9:59 PM | about stocks: AAPL, SOL, SPWR, SUNE

    Many of you must be wondering what's going on with SunPower...the short answer is: Nothing.

    What we are seeing is a very typical base building process which typically lasts a minimum of 8 weeks...

    Now let me share a few interesting, and bullish, observation(s)...

    Regular readers of my blog will recall that way back in February, I wrote a post on Sprint titled: " The Most Beautiful Cup And Handle Pattern Ever. And should you care to reread it, you will see a weekly chart of Sprint that showed a beautiful cup and handle pattern that took 3 years to form...On that particular chart, the handle alone was 18 weeks long and it took an additional 8 weeks before Sprint pulled out of that C&H pattern, and in the process made a boatload of money for my Options2Wealth portfolio...

    Guess what?

    A very similar Cup and Handle pattern, almost as beautiful as Sprint's, has formed in SunPower's weekly candlestick chart...

    (click to enlarge)

    What is especially interesting about this chart, and which was not evident in Sprint's chart, is that SPWR's 50 week SMA (simple moving average) line is only 2¢ away from crossing the stock's 200 week SMA line..Additionally, depending from where one measures it, the handle too is, at a minimum, 6+ weeks long.

    Next week on Monday, immediately upon the ringing of the opening bell, SPWR's 50 week sma will cross its 200 week sma from below...and the handle will be at least 7 weeks long...

    And now let's talk about the solar sector...

    As most of you know, there are 2 solar ETFs, The Guggenheim Solar ETF (NYSEARCA:TAN) and the Market Vectors Solar Energy ETF (NYSEARCA:KWT) that serve as proxy indices to the entire sector...

    Today, both TAN and KWT flashed Buy signals on their respective PnF charts...

    (click to enlarge)

    (click to enlarge)

    Notice how far each index is from its Bearish Resistant Line...What's the significance? This tells us how much further our favorite solar stocks still have to go...WoW!

    Like I said in a previous post, I expect SPWR to print at least $26 in the next 2-3 weeks...Then come back down to $23 and in the process of this gyration, form a beautiful flag pattern on its PnF chart...It should then breakout from there and reach my next target of $33 around next earnings' announcement at the end of October / beginning of November...

    :-)

    kp

    Disclosure: I am long AAPL, SOL, SPWR, SUNE.

    Themes: Options, Solar Sector Stocks: AAPL, SOL, SPWR, SUNE
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Comments (62)
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  • mkarakum
    , contributor
    Comments (49) | Send Message
     
    KP it has been long time since you have written another blog. Your loyal readers enjoy your analysis and would love to hear from you.

     

    imo this will go above 26 this week or early next week, but im not sure it will ever come down to 22., just so it forms that flag pattern..
    26 Sep 2013, 02:21 AM Reply Like
  • mkarakum
    , contributor
    Comments (49) | Send Message
     
    http://on.mktw.net/19B...
    26 Sep 2013, 02:35 AM Reply Like
  • invest.beginner
    , contributor
    Comments (85) | Send Message
     
    KP, You are right again, SPWR it $26 today. Let's see if this retests $22. I think it will go to $22.1 but not quite $22.00 & then back up to form a symmetrical triangle pattern inside this big flag pattern. We need 5 columns for the triangle to confirm & we are at the 3rd column. :-)
    26 Sep 2013, 02:43 PM Reply Like
  • mkarakum
    , contributor
    Comments (49) | Send Message
     
    If this will go down to 22, Is any one willing to buy put options and ride it till 22?
    26 Sep 2013, 08:31 PM Reply Like
  • Options2Wealth
    , contributor
    Comments (95) | Send Message
     
    Author’s reply » Thank you Mkarakum and IB for bringing my attention to a typo...What I meant to say is that ideally, after printing $26, I would like to see SPWR's stock price to make a 3 Box reversal and come back down to $23. That is the price when we will get a beautifully perfect flag pattern and it is from there I would like to see SPWR's next breakout to the upside...The $22 dollar price that I had mentioned was a mistake and I have made the correction to my original blog post...kp
    27 Sep 2013, 08:23 AM Reply Like
  • Options2Wealth
    , contributor
    Comments (95) | Send Message
     
    Author’s reply » Mkarakum, in my post, I laid out the ideal scenario...buying puts when the stock is in a confirmed uptrend is not a strategy that I subscribe to...kp
    27 Sep 2013, 08:25 AM Reply Like
  • mkarakum
    , contributor
    Comments (49) | Send Message
     
    Thank you KP for your feedback. Greatly appreciate it again.
    27 Sep 2013, 03:33 PM Reply Like
  • mkarakum
    , contributor
    Comments (49) | Send Message
     
    today it went up to 26.98 im so curious to see if it will pass 27. So far the chart has been correct.
    30 Sep 2013, 01:34 PM Reply Like
  • invest.beginner
    , contributor
    Comments (85) | Send Message
     
    lets see how this govt shutdown drama unfolds & depending on that SPWR might rally north or revisit $23 area. In any case, I'm holding.
    30 Sep 2013, 02:41 PM Reply Like
  • mkarakum
    , contributor
    Comments (49) | Send Message
     
    Well it did pass 27...We are now overbought, can we go higher without the 3 box reversal? I dont think we are revisiting 23 anymore...
    1 Oct 2013, 09:31 PM Reply Like
  • invest.beginner
    , contributor
    Comments (85) | Send Message
     
    I was thinking about that. Unless there is market crash. I'll continue to hold until earnings.
    2 Oct 2013, 12:19 AM Reply Like
  • mkarakum
    , contributor
    Comments (49) | Send Message
     
    yea but two times the PnF chart is violated one on the AAPL and then now on SPWR. So not sure how much we need to rely on it. I think we use as a guidance but as we see nothing is set in stone. Tomorrow something might happend and this thing goes to 10 or 40 and you cant see that on the chart. AAPL is an example imo.
    2 Oct 2013, 12:27 AM Reply Like
  • Options2Wealth
    , contributor
    Comments (95) | Send Message
     
    Author’s reply » MKarakum, You got it...PnF is only a tool, though a damn good one, that should be used to help make investment decisions...

     

    When I say something to the effect that SPWR should make a 3-Box reversal, that is my preferred move...there is no guarantee that it has to make that pull back...Case in point, the other day when I advised you not to buy Puts on SPWR after it had printed $26...Had the stock pulled back and made a 3-Box reversal, it would have been an ideal scenario, and instead of panicking, I would have been gobbling up its options with both hands...kp
    8 Oct 2013, 09:03 AM Reply Like
  • mkarakum
    , contributor
    Comments (49) | Send Message
     
    KP finally glad to hear from you again! You must be very busy. I sure understand these charts and your strategies better now. I agree with you on the put that is not something I would do as well especially on a stock that Im long.

     

    Do you think we have room to pass 33 and go towards 40 after ER? Or you think this should be the upper limit in the near term.

     

    Also, whats the ideal scenario you see after the ascending triple top break out? Do you think this will serve as a resistance until the ER?

     

    Thank you for your feedback.
    8 Oct 2013, 03:11 PM Reply Like
  • mkarakum
    , contributor
    Comments (49) | Send Message
     
    Is GOOG bearish now? Check out the chart.
    11 Oct 2013, 02:22 AM Reply Like
  • invest.beginner
    , contributor
    Comments (85) | Send Message
     
    I was thinking about this since mid sept. Don't have courage to short GOOG this. For now just playing with SPWR & AAPL. By the way, if you see AAPL pnf, it is showing lower highs & now the resistance is $493. If this stays below this level, do you think it is safe to hold it through earnings. I feel earnings are going to be good but if there is no china deal & 5C sales &/or guidance is below expectations, then this will go down hard. any thoughts?
    11 Oct 2013, 02:59 AM Reply Like
  • mkarakum
    , contributor
    Comments (49) | Send Message
     
    I got my lesson last time by not getting out before the china i phone launch. That was a disaster. I am convinced that it will not pass 496 before the ER. So i got out, because every week the option price is going down so I will get back in later. I am thinking about doing a straddle and hedging both ways at the ER.
    11 Oct 2013, 03:16 AM Reply Like
  • invest.beginner
    , contributor
    Comments (85) | Send Message
     
    PNF shows 493.18 for 3 box reversal. Tuesday, event invites from AAPL & then next week should stay above $490 area. This is amazing how the price fluctuates & pnf gives more clarity. Now we are in Xs. Enjoy!
    11 Oct 2013, 02:04 PM Reply Like
  • invest.beginner
    , contributor
    Comments (85) | Send Message
     
    I don't want to keep track of it everyday so I'll pass this, not a day trader. :-)
    26 Sep 2013, 08:39 PM Reply Like
  • invest.beginner
    , contributor
    Comments (85) | Send Message
     
    I just feel that SPWR is lagging other solar stock rally. But SPWR will start to rock soon. :-)
    27 Sep 2013, 11:45 AM Reply Like
  • Options2Wealth
    , contributor
    Comments (95) | Send Message
     
    Author’s reply » Good call, IB...SPWR is surely rocking...LOL!
    8 Oct 2013, 09:04 AM Reply Like
  • Invest2Win786
    , contributor
    Comments (12) | Send Message
     
    So, The Guru has been spot on, once again, lol, why am I not surprised? KP, I've looked more in depth on the candle stick analysis after you gave examples of how you'd used cup and handle formations successfully. So, couple of introductory questions on it. Do you pay the umbrella lines of hangman & hammer equal attention, in terms of momentum and impact? Or do you wait for hangman confirmation signals before getting out of a trade? Also, do you always use doji signal as an immediate trend breaker/reversal candidate, or is there ways it can fool you as a continuation pattern? Is there a hard and fast rule behind this?

     

    Thanks for the help Guru
    30 Sep 2013, 03:56 PM Reply Like
  • Options2Wealth
    , contributor
    Comments (95) | Send Message
     
    Author’s reply » I2W, Believe it or not, I don't even know what any of those patters mean...LOL! I don't get too bogged down with all those hangmans, and hammers...I leave it to others to hammer or hang themselves with... ;-) , kp
    8 Oct 2013, 09:07 AM Reply Like
  • Invest2Win786
    , contributor
    Comments (12) | Send Message
     
    Hello KP,

     

    Nice target hit again on SPWR, big time kudos on that!! I'd stayed in SCTY even though it reversed all the way down in upper 20's, but somehow came back with a force; and the other option i did good with was for TSLA, as it broke its $172 Price Objective and went upto $193, but has fizzled down into $170's again, even though it has a $242 Price Objective, I made some money selling on the way up. I know you were positive on it once upon a time, is there any technical related reason you're not still bullish on it other than the long tail bearish pattern previously? Also, regarding the previous question I posed to you on Candlesticks Analysis, I'm wondering is there only specific patterns you pay more heed to, I.E. cup and handle pattern compared to others? I'm thinking of doing an intralasik eye surgery done to pattern my eyes after yours so I can tell which key items you're looking for on the candlesticks, haha. Like do you simplify the analysis and look for more white sticks compared to black sticks, bigger white sticks, or is there some complex analysis that may take time for candle stick rookies like myself to learn various patterns?

     

    Thanks GURU
    21 Oct 2013, 02:37 PM Reply Like
  • kccase3
    , contributor
    Comments (35) | Send Message
     
    Hi KP,

     

    Again, we all really appreciate your comments and humble opinions so thank you very much!

     

    I am going to throw a sort of a curve ball at you, but since at least the date of your post on 9/5/2013, you have been long on ReneSola (SOL) (seemingly dropping TSLA for SOL instead). Well you have never commented on this company before so I was hoping you might give us your insight. Below is my analysis and I would really appreciate your thoughts.

     

    SOL (currently $4.99)
    -$5.50= Ascending Double Top
    -$6.00=Ascending Double Top Breakout, PnF Trend Turns Positive as it violates the Bearish Resistance Line

     

    Technical Attribute Positives (4 for 5’er)
    -Relative Strength (RS) vs Mkt showed BUY Signal on 7/15/2013
    -Peer RS showed BUY Signal on 7/15/2013
    -RS vs Mkt turned to a column of X’s on 9/30/2013 (yesterday)
    -Peer RS turned to column of X’s on /30/2013 (yesterday)

     

    Technical Attribute Negatives
    -Currently PnF Chart in Negative Trend until Bearish Resistance line violated at $6.00 (as stated above)

     

    Candlestick Chart Indicators
    -Weekly RSI in Candlestick chart slightly higher at 66 (but not too high, and has hit highs of 85 twice just recently in July and August)
    -Weekly Candlestick is beginning to develop into your famed cup and handle formation. It still has to move up to the $10-$12 range to complete the formation.

     

    Solar Indices
    -Guggenheim Solar ETF (TAN) is in a Positive Trend, in a column of X’s, and with a buy signal on 5/20/2013
    -Market Vectors Solar Energy (KWT) is in a column of X’s, with a buy signal on 7/15/2013, but is still in a negative trend.

     

    All in all, I think this looks like a pretty good buying opportunity but I wanted your opinion as you are the Guru when it comes to all of this stuff. I truly appreciate your help and your comments and analysis. Thanks KP!
    1 Oct 2013, 02:58 AM Reply Like
  • Options2Wealth
    , contributor
    Comments (95) | Send Message
     
    Author’s reply » Kccase3, Great call on SOL...After SPWR, my biggest bet is on SOL...And when SOL prints $6.00, it should be a doozy ride...This is one heck of a company in the making...Best, kp
    8 Oct 2013, 09:09 AM Reply Like
  • kccase3
    , contributor
    Comments (35) | Send Message
     
    thanks kp! always a confidence booster when you comment on our thoughts. appreciate it.
    8 Oct 2013, 12:46 PM Reply Like
  • kccase3
    , contributor
    Comments (35) | Send Message
     
    KP, now that SOL is your second larges holding, have you gone sour on AAPL? Do you expect good news in the Earnings Call on Monday? Also, with SOL taking a big hit Thursday and Friday this week, is this a good buying opportunity? The chart looks beautiful to me with consistent higher tops and higher bottoms in its current formation, I am hoping for a turnaround and march right past its most recent high. What are your thoughts?
    25 Oct 2013, 07:23 PM Reply Like
  • Andy Zelenak
    , contributor
    Comments (293) | Send Message
     
    Sold one of my first options today for a 60% gain (March SPWR call at $20). It felt great!

     

    Do you have any thoughts on the macro picture? Our inept Congress is starting to worry me.
    2 Oct 2013, 09:40 AM Reply Like
  • Options2Wealth
    , contributor
    Comments (95) | Send Message
     
    Author’s reply » Andy, glad to hear that your first options trade was profitable...

     

    If it were not for our "inept" congress, my CALL options would be touching the stars...LOL! Hopefully, all this is just posturing and that the Republicans are not serious about letting us default on our debt...Am keeping my fingers crossed...kp
    8 Oct 2013, 09:12 AM Reply Like
  • Andy Zelenak
    , contributor
    Comments (293) | Send Message
     
    Wow, I with I had held onto those calls longer.
    18 Oct 2013, 04:09 PM Reply Like
  • kccase3
    , contributor
    Comments (35) | Send Message
     
    Hi Karim,

     

    I hate to have another long winded question but I couldn't help myself. I have a couple questions regarding your most humble opinions LOL! and was wondering if those attitudes have changed or not.

     

    AAPL
    -Previously, the original Price Target for AAPL was to reach $580 within the month of September. Unfortunately, there was a lot of unwarranted noise (which turned out to be buying decisions) and it doesn't look like this will happen. Is this still your price target within October?
    -Do you still expect a China Mobile deal to be announced within a month or two (by 11/20)?

     

    SPWR
    -In August, you expected SPWR to hit $26, and ideally fall back to $22, then off to the races, form a double top and reach your initial Price Target of $33. It has gone to $28 and has an overbought RSI. Should we take profits here and expect a pullback? Or, stick in and hope to it $29, showing a double top breakout and expect SPWR to shoot up to at least $33?
    -8/8 comment-> SPWR Mkt Cap will surpass that of FSLR. GREAT CALL!
    -8/17 comment-> SPWR to make new 52 week high, it did today 10/2. GREAT CALL!

     

    SUNE
    -Way back during your public portfolio days (May), you expected WFR (now SUNE) to go to $13.50. This stock ran up to $10.47 in late July and has been pretty stagnant since. Do you still expect this price target? You have been long on SUNE for a very long while now so I was curious if your expectations have changed or not?

     

    As always, thank you so much for you opinion and comments. They are always very enlightening and helpful to all of your followers here!
    3 Oct 2013, 02:19 AM Reply Like
  • Options2Wealth
    , contributor
    Comments (95) | Send Message
     
    Author’s reply » I don't usually place monthly targets on stocks...however, in a nutshell, yes, that is still my target...A print of $500 will be an important breakout signal...Like you said, everything that occurred in the past month, was just that, noise...and as folks here must have noticed, an incredible buying opportunity for those who took advantage of the chaos...

     

    On SUNE, yes, $13.50 is still my price target...Best, kp
    8 Oct 2013, 09:17 AM Reply Like
  • kccase3
    , contributor
    Comments (35) | Send Message
     
    Hi KP,

     

    Hope all is well. SPWR gained some good ground today and hit a Four Year High as well as developed an Ascending Triple Top Breakout pattern. I am sure some of this gain was due to SCTY’s very bullish guidance and outlook on Friday, but SPWR did not shoot up like SCTY did. Do you expect SCTY to raise its outlook as well in the near future? Also, this move put SPWR’s Weekly RSI at ~75, which is getting close to its recent three overbought peaks, all at ~80. Is the reward still worth the risk here?

     

    Also, SPWR is going to announce its 3rd quarter earnings on 10/30/2013. The company smashed earnings estimates in Q2 and was unexpectedly walloped in the market afterwards. Do you plan on taking some profits before the earnings announcement or if the RSI hits ~80? Just trying to get your thoughts on an exit strategy. I know last quarter we first watched the reaction to similar solar stocks who announced earnings first to develop a plan for SPWR. Thanks for any input/thoughts.
    14 Oct 2013, 06:51 PM Reply Like
  • invest.beginner
    , contributor
    Comments (85) | Send Message
     
    Hello KP,

     

    Great call again on SPWR. You rock. I'll see you in Dec :-) Hope the guidance is good after ER.
    18 Oct 2013, 01:26 PM Reply Like
  • kccase3
    , contributor
    Comments (35) | Send Message
     
    I second that!!! Great Call KP!!!
    18 Oct 2013, 04:25 PM Reply Like
  • 11828801
    , contributor
    Comments (25) | Send Message
     
    Thank You KP :)
    18 Oct 2013, 05:34 PM Reply Like
  • invest.beginner
    , contributor
    Comments (85) | Send Message
     
    Now its AAPL's turn. An apple a day.......keeps me invested in this market :-)
    18 Oct 2013, 05:50 PM Reply Like
  • rshayeg
    , contributor
    Comments (6) | Send Message
     
    Hi KP,

     

    I wanted to see what your thoughts are on SOL. It has been dropping daily after reaching its $6.00 high. Are you still bullish on the company??? I see no news for the stock to continue dropping and the TAN has been up every day whereas SOL has been down. Do you believe this is oversold?? Also would you be able to provide a price target???? Greatly Appreciated!
    18 Oct 2013, 06:43 PM Reply Like
  • Options2Wealth
    , contributor
    Comments (95) | Send Message
     
    Author’s reply » Hello Rshayeg,

     

    Please see my detailed comment below...

     

    As for price targets...I expect SOL to reach my intermediate target of $10.50 within the next couple of months and then after taking a breather, I expect SOL to print $15 by next Spring...

     

    Best~
    kp
    19 Oct 2013, 01:31 PM Reply Like
  • invest.beginner
    , contributor
    Comments (85) | Send Message
     
    Hi Rshayeg, looks like 4.9 & 4.7 are support levels. It's a bearish triangle breakdown. :-(
    18 Oct 2013, 07:53 PM Reply Like
  • Options2Wealth
    , contributor
    Comments (95) | Send Message
     
    Author’s reply » Not sure where you see a breakdown in SOL's chart...

     

    In a previous response to a comment, I had mentioned that when SOL prints $6.00, it will be a major, bullish signal confirmation...Well, last week, SOL did just that...The signal confirmation that I was alluding to was its break of its Bearish Resistance Line...

     

    As you and everyone else who follows my blog knows, I put a lot of emphasis on the break of the BRL...In my universe of stock technical analysis, a BRL break signal is probably the MOST RELIABLE signal for going long on a stock...Does not mean that this signal is 100% reliable, but it is heck of a lot more reliable than any other technical signal...period!

     

    Last week, SOL not only pierced through its BRL line, it also broke through a double top in the process...All very bullish indeed...

     

    And if you look at SOL's weekly candlestick chart, you will notice that prior to this week's down move, the stock had moved up 4 weeks in a row...so it is healthy for the stock to take a breather and pull back...I don't see anything negative about this down week at all...What should trump over everything else is that last week SOL telegraphed a new uptrend by piercing through its Bearish Resistance Line...

     

    Now all we need is patience...

     

    In the next 2 weeks, I expect SOL to make a pretty solid move up and this ride should be a doozy...

     

    :-)

     

    kp
    19 Oct 2013, 01:22 PM Reply Like
  • invest.beginner
    , contributor
    Comments (85) | Send Message
     
    Hi KP & Rshayeg, with ATR setting on pnf chart, which is short term indicator showed negative breakout. PO is 4.73 & today we are close to that. I agree long term this should be $10+. Today is my entry point in SOL at 4.82. KP, for you this small fluctuation is noise :-) The more I use pnf the more I love this methodology.
    24 Oct 2013, 04:03 PM Reply Like
  • rshayeg
    , contributor
    Comments (6) | Send Message
     
    KP/invest.beginner,
    Thank you both for your input. I too have been following Renesola for quite a few years (since the solar boom days when it was at $12) and just how well is has performed and survived in such a debt laden industry. I have been following your blog since your call on SPWR (which was a great call Sir). I also am very bullish on APPL as well as it finally crossed over that $500 resistance point. Great blog and good to see active users with so much insight :)

     

    Rshayeg
    20 Oct 2013, 11:38 AM Reply Like
  • rshayeg
    , contributor
    Comments (6) | Send Message
     
    I'd also like to mention an observation made: SOL has open interest for its Jan 14 $6 and 7.5 calls at 14000, pretty big volume for an OE 3 months away.
    21 Oct 2013, 01:03 AM Reply Like
  • 11828801
    , contributor
    Comments (25) | Send Message
     
    Hi KP,

     

    Since SPWR reached your $33 Price Target, Do you suggest to remove options/calls now? I have $27 Strike for January 2014.

     

    Thanks,
    Karthik
    21 Oct 2013, 10:03 AM Reply Like
  • Solararon
    , contributor
    Comments (9) | Send Message
     
    I am very tentative on SOL. I have heard very recent rumors they are being investigated for labeling Chinese solar cells as Taiwanese to avoid the Chinese tarrifs.
    Not sure if this is actually true how this will affect the stock price.
    21 Oct 2013, 01:00 PM Reply Like
  • rshayeg
    , contributor
    Comments (6) | Send Message
     
    Invest.beginner, thank you for the response. KP/Invest.beginner do you see this range that SOL is trading at (currently at 4.66) as a bottom?? I personally did not thing it would break below the 4.70 range. Thanks in advance... with the amount the stock has dropped this week I would hope next week will be a better week :)
    25 Oct 2013, 10:37 AM Reply Like
  • invest.beginner
    , contributor
    Comments (85) | Send Message
     
    On pnf chart it is still printing higher high & higher low. I think the trend is still up. Entire solar sector went up quickly so lets wait for some consolidation :-)
    25 Oct 2013, 12:15 PM Reply Like
  • rshayeg
    , contributor
    Comments (6) | Send Message
     
    Sorry, another follow up question.... being that SPWR reports earnings next week... do you think that expect a sell off, considering last earnings report they beat the street and raised guidance however the stock went from ~$28 down to the $22 range. Given SPWR's rise to $33 do you expect profit taking or can the stock break to a new 52 week high given another good earnings report? Thanks and have a good weekend all!
    25 Oct 2013, 02:58 PM Reply Like
  • Options2Wealth
    , contributor
    Comments (95) | Send Message
     
    Author’s reply » FYI...On Friday SunPower filed form 8-K with the SEC that gave me some pause...Here is the exact verbiage of the filing:

     

    "First Amendment to Thomas H. Werner's Employment Agreement

     

    On October 24, 2013, at the request of Mr. Werner, the Company entered into a First Amendment to the Employment Agreement (the "Amendment") with Thomas H. Werner, the Company's Chief Executive Officer, to amend Mr. Werner's Employment Agreement, dated August 28, 2008, with the Company (the "Employment Agreement"). The Amendment provides that, effective August 28, 2014 (the date on which the Employment Agreement would be due to renew in accordance with its terms), the amount of severance benefits that Mr. Werner is entitled to receive under the Employment Agreement in the event of a qualifying termination shall be reduced, with his lump-sum cash severance benefit decreased to reflect 24 months of his then-current base salary (decreased from 36 months of his then-current base salary) and two times his target annual bonus (decreased from three times his target annual bonus) and his period of subsidized COBRA benefits decreased from a period of up to 36 months to a period of up to 24 months."

     

    I found it odd that the CEO requested that his compensation, in the event that the company decides to terminate his employment, be reduced...

     

    Since I could not come up with a plausible reason as to why the CEO would request that his severance compensation be reduced other than because of some sort of a hiccup that the company had to endure under his watch, I decided to substantially lighten my holdings in SunPower CALL options over the last couple of days...Even though this filing may be nothing more than a tempest in a teacup, I felt prudent to book my profits, especially when the stock had not only reached my target price, but exceeded it.

     

    Should the company announce gangbuster earnings and with zero caveat and the stock gaps up tomorrow, I will still be able to participate in tomorrow's festivities with my smaller position. And going forward, I'm sure I'll still find plenty of opportunities to increase my holdings over the coming days and weeks...after all, this is a longterm story and I expect this gravy train to continue to pay me dividends over many years...right now, I felt that prudence should take precedence over greed...

     

    All of the above is my personal opinion and I don't expect, or want, anyone here on my blog to make your buy and / or sell move(s) based on what I do in my portfolio...Best of luck to all...

     

    kp
    30 Oct 2013, 02:20 PM Reply Like
  • 11828801
    , contributor
    Comments (25) | Send Message
     
    Thanks KP for the update :)
    30 Oct 2013, 04:52 PM Reply Like
  • kccase3
    , contributor
    Comments (35) | Send Message
     
    thanks for the update KP! I should have been aware of that. though the company did post a pretty darn good quarter, the stock is going down in after hours once again. that being said, would this may be another buying opportunity possibly? or would we expect the stock to take a breather and should wait for the weekly RSI to come down out of the 70 range? final question, now that you ABSOLUTELY hit the $33 price target on the head, what's your next bet for movement in the stock price? or are you going to reallocate more resources to SOL in the meantime? Thanks as always.
    30 Oct 2013, 05:29 PM Reply Like
  • Andy Zelenak
    , contributor
    Comments (293) | Send Message
     
    Thanks for the warning. SPWR has developed a nasty habit of plunging after great earnings reports. I suppose it comes from high expectations
    31 Oct 2013, 10:06 AM Reply Like
  • mkarakum
    , contributor
    Comments (49) | Send Message
     
    Has the shine faded KP? Whats your thoughts?
    4 Dec 2013, 02:13 AM Reply Like
  • Options2Wealth
    , contributor
    Comments (95) | Send Message
     
    Author’s reply » I don't believe it has...What we are seeing is general consolidation in the entire solar sector, which of course is very good for its long term health...I have been a buyer of SPWR options during this correction and am confident that my options will yield me handsome results...but then, what do I know...I was also very bullish on ReneSol and look what happened to its stock price today...LOL! kp
    5 Dec 2013, 09:00 AM Reply Like
  • mkarakum
    , contributor
    Comments (49) | Send Message
     
    We are making lower highs and lower lows. Do you think the downward trend is now confirmed? Not sure why all of a sudden the trend has changed.
    11 Dec 2013, 03:30 PM Reply Like
  • Options2Wealth
    , contributor
    Comments (95) | Send Message
     
    Author’s reply » MK, I believe that SPWR's downward trend has come to an end...The stock has completed my preferred 8 weeks (minimum) of consolidation and should be ready to break to the upside any day now...best, kp
    17 Dec 2013, 09:13 AM Reply Like
  • invest.beginner
    , contributor
    Comments (85) | Send Message
     
    Hi KP, Are you out of SOL now? They closed phase 1 poly plant. Is it still a good investment?
    5 Dec 2013, 09:09 AM Reply Like
  • mkarakum
    , contributor
    Comments (49) | Send Message
     
    I think SPWR's future is rock solid but its just the general short term sentiment about the solar industry worries me. Also the PNF chart shows bearish but i know that could be reversed once it moves up above 32.
    5 Dec 2013, 04:11 PM Reply Like
  • mkarakum
    , contributor
    Comments (49) | Send Message
     
    Hi Kp--

     

    SPWR have been consolidating for over 5 months now, I thought it would break out with TAN but still didnt. I dont get it why the whole industry breaks out but SPWR doesnt. The future is nothing but brighter.
    Any thoughts?
    12 Mar, 01:48 AM Reply Like
  • Solararon
    , contributor
    Comments (9) | Send Message
     
    I just saw this news about SOL. It is a few months later than I thought, but it looks like the investigation for fraudulent anti dumping activity is public.

     

    http://on.mktw.net/NZNkXH

     

    I heard through some industry contacts that a lot of Chinese Manufactures can somehow "find" documentation to help get cleared of these type of investigations. So we shall see where this goes.
    27 Mar, 12:45 PM Reply Like
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