I turn dials and fiddle with knobs to hone in on harmonic rotations
Joined Oct 26, 2011
3,632 Blog Posts

The Next Big Trade (IT IS BIG)

I came about this trade in an around about way.  Here’s the story.

I charted and ranked the seven #Japan stocks I’m watching over on chartpin.  Although going over the setups and getting an idea for how they trade, I’m not exactly dropping everything to build 20% of my cash into a basket of three or four ADRs.  However, a few of the charts are offering decent entries and they’re on my radar going into Tuesday’s trade.

But there’s a bigger play that continues to swirl in my mind.  I bumped into a small Italian man at the grocery because I was staring up and doing Rainman math.

I swam like the wind today.  You may wonder how exactly it is the wind swims.  As I sit here, gingery sipping a hot cup of Red Rose, the working man’s tea, I can tell you unequivocally, the wind swims well.  Swimming and pondering the world I could only think about lighting grade LEDs.  All kinds.

Obviously CREE is the best pure play as they drive the R&D train into the future.  They rock.  I took shares long the day after earnings to wet my beak and it’s run 18% since then.  I would like a dip to add.  In the meantime, these ancillary plays are offering ace entries:

ALB isn’t a pure play, but has a horse in the LED race.

LYTS is in a position to crush competitors and drive market adoption of LED retrofits.  They have several décor and signage offerings, but they tend to build out the design updates with LED lighting systems too.  They have proven the cost recapture and savings a business can receive from switching over. Winner.

OESX does high bay high power lighting and other commercial retrofit work.  They offer financing too, LEVERAGE.  RVLT is a similar idea.  Winner.

GTAT makes sapphire and sapphire making components.  The chart shows a possible inverse head and shoulder bottoming pattern.

LEDS is out there, trading in the penny range, but this company is pretty haggard.  Their website has spelling errors on it and could be a joomla template.  Their CEO even won the ASSHATE OF THE WEEK award.  Avoid and let die.

If you own a company and intend on staying in the graces of Premier Obama, an LED retrofit project is sure to keep you safe from drone attacks on your bullshit BMW 3 Series.

Go henceforth to the charts and get in on the LED action.

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  1. raul3

    Note: $LYTS is my #marchmadness2013 pick but they’re not the best play. They’re just over $5.00

    Their financial statements suggest poky management.

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  2. PirateSmile

    Been trading some names in this space for a few years, a few to add:

    AIXG , VECO, RBCN. Long a little bit of RBCN.

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    • Raul3

      Thanks, I’ll take a look… Do you have any further thoughts to add? I think adoption rate accelerates these next few years.

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  3. Sooz

    Keep an eye on RVLT
    it did not break a buck this morning( after that huge move off of .84 pennies). Someone promptly swooped in and lifted it 6%
    *plan to add back share somewhere along the line.
    (still holding postition @15 pennies although much MUCH smaller in size)
    I’ll keep you posted.

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  4. Sooz

    yesterdays LoD was .90 pennies
    (missed that scoop)
    *thinking it would go back down to that breakout

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