One of my favorite companies in the alternative energy investment theme is becoming more and more attractive every day.
Evergreen Solar (NASDAQ/ESLR), which, by most accounts, is considered one of the best growth stories in the solar energy industry, hasn’t been doing well on the stock market lately.
The stock has now moved below $10 per share and is well off its recent high of approximately $17.50 per share. Frankly, I’d keep a close eye on this stock because a very attractive entry point seems to be presenting itself.
It does take courage to step up to the plate and buy a stock when it’s down (or going down). It really isn’t very easy buying low and selling high. Of course, this is the best way to make money in the stock market.
Another growing company that’s well off its highs is Finisar Corp. (NASDAQ/FNSR). This small-cap technology company makes optical subsystems and other specialized components that help connect local area networks.
The stock was recently trading well over $5 per share, and is now trading in a range around $2.75 per share. This stock was once the subject of significant speculation by many stock market professionals, and its story has now lost favor with the Street. This doesn’t mean, however, that the company isn’t growing.
Finisar Corp. is another company that looks to be offering an attractive entry point right now.
As I’ve said previously, the broader market is likely to wane in the absence of earnings season. As soon as companies stop reporting second quarter earnings, investors will go back to worrying about inflation and interest rates. This is why the third quarter should present an attractive entry point for taking on new positions.
The stock market isn’t expensive right now. It is just waiting to see how inflation plays out in the economy. If we can get a handle on prices without destroying the economy, I think we’re in for a sustained upward move in stock prices. This could happen as soon as the fourth quarter this year.