logo  
Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?

Register
    

JA Solar Holdings (JASO) Gains on Northland Capital Coverage

By  +Follow April 1, 2014 7:54AM
Share:
Tickers Mentioned:

Chinese small-cap solar panel manufacturer JA Solar Holdings (JASO) traded sharply up on news that Northland Capital had initiated coverage with an “outperform” rating and a price target of $19 a share, nearly double its current share price.

Shares opened up 4 percent at $10.58 and climbed to a high of $11 a share (an 8.2 percent gain) just before noon before pulling back to around $10.75 by early afternoon.

Northland Capital analyst Colin Rusch sparked the gains with his bullish analysis, citing growth opportunities in Japan and China and lower production costs.

"With JASO increasing its module capacity in 2014, we expect the company will be able to see manufacturing increasing margin as some peers see margins begin to flat line,” said Rusch. “We also believe the company has among the best non-silicon costs in the industry, exiting 2013 at $0.43/W and targeting <$0.40/W...We believe JASO should see all in manufacturing cost of <$0.50W by the end of the year...We believe the company should be able to reach near 20% GM by the end of 2014 for its manufacturing business."

Solar stocks tend to move in unison and Tuesday was no exception, with the primary ETF tracking the industry, the Guggenheim Solar ETF (TAN) , gaining over 1.25 percent on the day. Big gainers included Trina Solar Limited (TSL) , up over 4.5 percent; Yingli Green Energy (YGE) , up over 2.75 percent, and Hanwha Solarone (HSOL) , up about 3.5 percent. So far, 2014 has proven a solid year for solar companies, with TAN among the top-performing ETFs in the first quarter.

JA Solar Holdings’ stock chart currently shows some interesting patterns and technical factors that could mean the stock is due for a bigger move in the relatively near future. The stock recently began gaining again after hitting a rising support level that been running parallel to the stock’s 200-day SMA. It also came as the stock 14-day stochastic RSI dipped all the way to 0.00, giving traders two clear buy signals and sparking a mini-run over the last few days.

The support line appear solid, bouncing prices back upward five times since July of last year. However, this most recent downturn that pushed the stock into oversold territory and tested support came as a result of a double-top that resulted from the stock hitting resistance at $12.50 a share after a positive earnings report prompted a positive run.

With the convergence of these two strong trend lines, it appears as though prices are consolidating. As such, it’s possible that a major move up or down could be coming in the next few months based on these technical factors. However, there remain plenty of fundamental factors that could ultimately supersede these, most notably the company’s Q1 2014 earnings report.

Still, with price consolidation like this, it seems entirely possible that any news or fundamentals could ultimately act as the necessary catalyst to spark a big buying run or sell off.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.


Liked What You Read? Join Equities.com and Connect With Your Favorite Financial Experts FOR FREE! Members of Equities.com gain access to our leading financial news and content, active social investment community, proprietary research tools including the 2014 Small-Cap Stars, E.V.A. reports and more.

				
				
By  +Follow April 1, 2014 7:54AM
Share:

Comments

 

blog comments powered by Disqus

About us

Equities.com is the most advanced interactive online social ecosystem for the financial industry, serving as a resource center and next-generation communication platform that connects self-directed investors with public issuers, market experts, and professional service providers and vendors. Registered members can leverage our exclusive proprietary research tools such as the Small-Cap Stars, which outperformed 90% of all small-cap mutual funds, and robust do-it-yourself E.V.A. research reports. The Equities.com Issuer Dashboard is the ideal tool to communicate and manage investor awareness campaigns to the investment community, as well as to access valuable resources to help your company grow.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.