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I want to look at Solar City ( NASDAQ:SCTY ).
The company was supposed to announce earnings
after the bell today, but they issued a press release
saying that they're going to have to delay their earnings until March
3rd. It has to do with complying with
the accounting rules,
due to acquisitions, and then overhead allocation charges
due to increase in megawatts delivered. In other words,
they've had a big increase in the amount of
stuff that they're delivering i.e., megawatts of power
and they want to make sure they get their financials right in order to
comply
with the prevalent accounting rules.
That's not a bad thing, they're still having their conference call today,
and because I'm doing this I'm not listening to that.
So why am I featuring this now? I'm thinking that this
is a buying opportunity, this is not a stock,
as you can see here, this is not a stock that's being held by budget
chuckleheads
that were gunning the stock, just running it up
with reckless abandon while
the major players are staying out of this stock. This is not some
goofy micro-cap stock that some guy with
a penny stock newsletter comes out with and pushes the stock way up to
where
a delay in earnings is really going to crush the stock; this is not that.
If you look at the 5-minute chart you can see, the
stock comes up, everybody's got to buy,
for whatever reason, I have no idea, and then this stock
absolutely gets crushed. So
imagine you're one of the guys I keep telling you, don't trade after hours, it's
for fools,
and if you trade after hours, and you're losing money,
you're in the aforementioned group.
This is support down here at 73.00, so the thing went
basically $9.00 roundtrip
and now it's trading lower, but still above
this level. My bet is that tomorrow
this stock is going to find support right
around here and we're going to start all over again.
I think this is a stock that you want to buy, but
make sure make sure that you don't get all
frisky on me here and buy too much.
The fact that they delayed their earnings and the stocks only down a
little bit
is actually a good thing in my view, because it's going to wash out the few
weak hands that are in this stock. So I think you can buy this stock and hold it
into earnings, I think you're going to make money.