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Hi everyone,

You might have noticed that Power-One took another hit on Friday when a smallish hedge fund announced that short Power-One and another solar stock (without looking it up, I think it was JA Solar). Down another 5% or so. Price in the low $7 range.

Over the weekend, I thought about this, ran some numbers on what FCF might be if the company lost 40% of its revenue (all from the inverter side) this year, and decided to buy some more. Was going to write the article today, buy tomorrow, and wait for killer returns to justifiably roll in. :-)

Well, of course, the stock rocketed up today, up over 13%. And I was busy with content for this Friday's Stock Advisor issue, so I wasn't able to take advantage of the situation, even if I had been able to get the article out today.

Life for a publicly-facing portfolio with strict rules on the timing of purchases can be irritating at times. <sigh>

Cheers,
Jim
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Jim--This rise in price is NOT the thesis playing out, it is a direct consequence of the nuclear situation in Japan. What do you do when there is a problem in nuclear?? Of course you buy solar. Once the nuclear issue is resolved (and I believe it will be resolved without massive fallout), PWER might well come back down.

Bikerliz
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This rise in price is NOT the thesis playing out, it is a direct consequence of the nuclear situation in Japan. What do you do when there is a problem in nuclear?? Of course you buy solar.

Hi Bikerliz,

Yes, exactly. In fact that's what I'm hoping will happen. I've got an article that will come out later today that looks a bit at this.


Once the nuclear issue is resolved (and I believe it will be resolved without massive fallout)

Nice pun. :-)

Cheers,
Jim
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I've got an article that will come out later today that looks a bit at this.

And here it is: http://www.fool.com/investing/general/2011/03/15/why-did-the...

Cheers,
Jim
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Here's a nice (and longer) presentation of a buy thesis for Power-One, from Seeking Alpha. http://seekingalpha.com/article/258118-power-one-undervalued...

Cheers,
Jim
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