Why do we sell low and buy high? Part 2
As I mentioned in the last chapter, we are driven throughout our lifetimes by several psychological factors that may explain why we aren�� making the right decisions when it comes to buying and selling stocks. In this chapter, I will expand on the need to be liked factor and will introduce two new behavioral factors that affect our decision process��ur tendency to be overconfident and our need to comply with our previous commitments.
To be liked or not to be liked: that is the question.
There is a good reason why we are conditioned and almost addicted to the idea of being liked and, furthermore, why we are afraid of not being liked. Remember your school days. Who did you want to be? Did you want to be the kid that was the most popular or the kid no one would speak to? Did you want to come to parties on your own or with other kids? How did you feel about the kid who sat next to the teacher on the annual school trip because no one else wanted to sit next to him or her?
Top Quality Companies To Buy Right Now: SolarCity Corp (SCTY)
SolarCity Corporation (SolarCity), incorporated on June 21, 2006, is engaged in the design, installation and sale or lease of solar energy systems to residential and commercial customers, or sale of electricity generated by solar energy systems to customers. The Company sells renewable energy to its customers. As of December 12, 2012, the Company served customers in 14 states. The Company�� residential customers are individual homeowners and homeowners. The Company�� commercial customers represent several business sectors, including technology, retail, manufacturing, agriculture, nonprofit and houses of worship. The Company has installed solar energy systems for several government entities, including the the United States Air Force, Army, Marines and Navy, and the Department of Homeland Security. The Company purchases major components, such as solar panels and inverters directly from multiple manufacturers. As of September 30, 2012, its primary solar panel suppliers were Trina Solar Limited, Yingli Green Energy Holding Company Limited and Kyocera Solar, Inc., among others, and its primary inverter suppliers were Power-One, Inc., SMA Solar Technology, AG, Schneider Electric SA, Fronius International GmbH and SolarEdge Technologies, among others.
Solar Energy Products
The Company�� solar energy products include Solar Energy Systems, and SolarLease and power purchase agreement finance products. The major components of its solar energy systems include solar panels that convert sunlight into electrical current. Most of its solar energy customers choose to purchase energy from the Company pursuant to one of two payment structures: a SolarLease or a power purchase agreement. In both structures, the Company charges customers a monthly fee for the power produced by its solar energy systems. In the lease structure, this monthly payment is pre-determined and includes a production guarantee. In the power purchase agreement structure, the Company charges customers a fee per kilowatt! hour based on the amount of electricity actually produced by the solar energy system.
Energy Efficiency Products and Services
The Company�� energy efficiency products and services include home energy evaluation and energy efficiency upgrades. The Company sells home energy efficiency evaluations to new solar energy system customers and existing customers. The Company�� energy efficiency upgrade products and services address heating and cooling, air sealing, duct sealing, water heating, insulation, furnaces, weatherization, pool pumps and lighting. As of December 12, 2012, the Company had completed over 13,000 home energy evaluations and performed more than 2,000 energy efficiency upgrades.
Other Energy Products and Services
The Company�� other energy products and services include electric vehicle charging and energy storage. The Company installs electric vehicle (EV) charging equipment that it sources from third parties. SolarCity markets EV equipment to residential and commercial customers through retail partnerships with companies, such as The Home Depot, and through EV manufacturers and dealerships, such as its partnership with Tesla Motors, Inc. The Company is developing a battery management system built on its solar energy monitoring communications backbone. As of December 12, 2012, the Company had over 100 energy storage pilot projects under contract. As of December 12, 2012, the Company had sold over 750 charging stations.
Enabling Technologies
The Company�� enabling technologies include SolarBid Sales Management Platform, SolarWorks Customer Management Software, Energy Designer, Home Performance Pro and SolarGuard and PowerGuide Proactive Monitoring Solutions. SolarBid is a sales management platform, which incorporates a database of rate information by utility, sun exposure, roof orientation and a range of other factors to enable a detailed analysis and customized graphical presentation of each customer� �s savin! gs.
SolarWorks is the software platform the Company uses to track and manage project. Energy Designer is a software application its field engineering auditors use to collect pertinent site-specific design details on a tablet computer. Home Performance Pro is its energy efficiency evaluation platform that incorporates the United States Department of Energy�� Energy Plus simulation engine. Home Performance Pro collects and stores details of a building�� construction and energy use. SolarGuard and PowerGuide provide its customers a view of their home�� or business�� energy generation and consumption.
The Company competes with American Solar Electric, Inc., Astrum Solar, Inc., Petersen Dean, Inc., Real Goods Solar, Inc., REC Solar, Inc., Sungevity, Inc., Trinity Solar, Inc., Verengo, Inc., SunRun Inc. and Ameresco, Inc.
Advisors' Opinion:- [By Travis Hoium]
No presence in residential solar
The biggest disadvantage for First Solar right now is that it doesn't have exposure to the growing residential solar market. This is where SunPower and SolarCity (NASDAQ: SCTY ) are growing their leasing businesses and defining what the future of solar power will look like. It's this distributed solar source that makes more financial sense than giant utility projects�in the long term because they'll have power consumed at the source and cut down on transmission and distribution costs.
Top New Companies To Watch In Right Now: Osage Exploration and Development Inc (OEDV)
Osage Exploration and Development, Inc. (Osage) is an oil and natural gas exploration and production company with reserves and production in the country of Colombia and the state of Oklahoma. The Company�� pipeline is located in Colombia. The Companys focuses on developing its 28,000-acre Horizontal Mississippian block along the Nemaha Ridge in Logan County, Oklahoma, with their partners Slawson Exploration, and U.S. Energy Development Corp. The Company generates oil sales from its production operations in Colombia and in the state of Oklahoma and pipeline revenues from its Cimarrona property in Colombia. During the year ended December 31, 2011, the Company drilled two salt water disposal wells and commenced drilling the Wolfe#1-29H, the Company�� horizontal Mississippian well in Logan County, Oklahoma. In January 2012, the Company began drilling the Krittenbrink 2-36H, the Company�� second well in Logan County.
The Company�� subsidiary, Cimarrona LLC, owns a 9.4% interest in certain oil and gas assets in the Guaduas field, located in the Dindal and Rio Seco Blocks that consist of 21 wells, of which seven are producing, that covers 30,665-acres in the Middle Magdalena Valley in Colombia, as well as a pipeline with a capacity of approximately 30,000 barrels of oil per day. The Cimarrona property, but not the pipeline, is subject to an Ecopetrol Association Contract (the Association Contract) whereby the Company pays Ecopetrol S.A. (Ecopetrol) royalties of 20% of the oil produced.
The Company has acquired oil and gas leases in Logan County, Oklahoma targeting the Mississippian formation. The Mississippian formation is located on the Anadarko Shelf in northern Oklahoma and south-central Kansas. The top of this expansive carbonate hydrocarbon system is encountered between 4,000 and 6,000 feet and lies stratigraphically between the Pennsylvanian-aged Morrow Sand and the Devonian-aged Woodford Shale formations. The Mississippian formation reach 600 feet in gross thickness a! nd the targeted porosity zone is between 50 and 300 feet in thickness. The Company owns 100% of the working interest in certain producing oil and natural gas leases located in Osage County, Oklahoma (Hopper Property). The Property consists of 23 wells, 10 of which are producing wells, on 480 acres.
Advisors' Opinion:- [By CRWE]
Today, OEDV surged (+6.78%) up +0.08 at $1.26 with 39,220 shares in play thus far (ref. google finance Delayed: 11:56AM EDT August 22, 2013).
Osage Exploration and Development, Inc. previously reported financial results for the three months ended June 30, 2013 and provided an update on field operations. For the quarter, the Company reported a 75.8% increase in revenues of $2.4 million compared to the same period in 2012, and operating income of $1.2 million versus a loss of $274,563 for the period ending June 30, 2012.
Osage participated in drilling ten wells during the second quarter, bringing the total number of wells in which Osage has an interest to twenty-nine as of June 30, 2013. Additionally, the Company reported average daily production roughly in-line with first quarter production.
- [By CRWE]
Today, OEDV surged (+1.96%) up +0.03 at $1.56 with 178,129 shares in play thus far (ref. google finance Delayed: 12:28PM EDT August 30, 2013).
Osage Exploration and Development, Inc. previously reported preliminary production results on the Mallard 1-16H Horizontal Mississippian well in Logan County, Oklahoma. The well, located in Section 16-17N-3W, achieved a 24-hour peak initial production rate of 705 barrels of oil plus associated natural gas on an electric submersible pump and a 48/64��choke.
Top New Companies To Watch In Right Now: Peat Resources Ltd (PET)
Peat Resources Limited is a Canada-based, development-stage company. The Company is engaged in the exploration and development of peat properties in Newfoundland and Labrador (Newfoundland) and Ontario. During the fiscal year ended May 31, 2012, the Company had not generated any revenue from its operations. Advisors' Opinion:- [By TaniaC]
The Coca-Cola Company (KO) and its bottling partners in Mexico announced a joint, six-year investment of $8.2 billion at a ceremony commemorating the world's largest food-grade polyethylene terephthalate (PET) bottle-to-bottle recycling plant. Coca-Cola began operations in Mexico 88 years ago.
Top New Companies To Watch In Right Now: KiOR Inc (KIOR)
KiOR, Inc. (KiOR), incorporated on July 23, 2007, is development- stage company. KiOR is a renewable fuels company engaged in producing cellulosic gasoline and diesel from abundant non-food biomass. Cellulosic fuel is derived from lignocellulose found in wood, grasses and the non-edible portions of plants. The Company generates hydrocarbons from renewable sources . Its end products are fungible hydrocarbon-based gasolines and diesels that can be used as components in formulating finished gasoline and diesel fuels, rather than alcohols or fatty acid methyl esters (FAME) such as ethanol or biodiesel. During the year ended December 31, 2011, the Company commenced construction of its initial-scale commercial production facility in Columbus, Mississippi, designed to process 500 bone dry ton per day (BDT) of feedstock per day, As of December 31, 2011, the Company had not generated any revenues.
The Company has developed a process that converts non-food lignocellulose into gasoline and diesel that can be transported using the existing fuels distribution system for use in vehicles on the road. Its biomass-to-cellulosic fuel technology platform combines catalyst systems with fluid catalytic cracking (FCC) processes that have been used in crude oil refineries to produce gasoline. The biomass fluid catalytic cracking (BFCC) process operates at moderate temperatures and pressures to convert biomass in a matter of seconds into the renewable crude oil that can be processed using standard refining equipment into its cellulosic gasoline and diesel. In its demonstration unit the Company varies its volume output of gasoline from 37% to 61%, diesel from 31% to 55% and fuel oil from 8% to 9% from its renewable crude oil. The Company focuses on its commercialization efforts with respect to its gasoline and diesel. As of December 31, 2011, the Company had 76 pending original patent application families containing over 2,300 pending claims.
Advisors' Opinion:- [By Roberto Pedone]
Another biodiesel player that's starting to move within range of triggering a big breakout trade is KiOR (KIOR), which is a next-generation renewable fuels company, producing cellulosic gasoline and diesel from abundant non-food biomass. This stock has been trashed by the bears so far in 2013, with shares off by 62%.
If you look at the chart for KiOR, you'll notice that this stock has been trending sideways and consolidating for the last month, with shares moving between $2.06 on the downside and $3.10 on the upside. Shares of KIOR are now starting to spike higher right above its 50-day moving average of $2.20 a share, and it's quickly moving within range of triggering a big breakout trade above the upper-end of its recent sideways trading chart pattern.
Traders should now look for long-biased trades in KIOR if it manages to break out above some near-term overhead resistance levels at $2.54 to $2.62 a share, and then once it takes out more near-term overhead resistance levels at $2.87 to $3.10 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 882,812 shares. If that breakout triggers soon, then KIOR will set up to re-test or possibly take out its next major overhead resistance levels at its 200-day moving average of $4.05 to $5 a share.
Traders can look to buy KIOR off any weakness to anticipate that breakout and simply use a stop that sits right below its 50-day at $2.20 a share, or around its recent low of $2.06 a share. One can also buy KIOR off strength once it takes out that breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.
Top New Companies To Watch In Right Now: Solar Thin Films Inc (SLTZ)
Solar Thin Films, Inc. is engaged in the business of designing, manufacturing and installation of thin-film amorphous silicon (a-Si) photovoltaic manufacturing equipment. The equipment is used in plants that produce photovoltaic thin-film a-Si solar panels or modules. The Company operates through its wholly owned subsidiary, Kraft Elektronikai Zrt (Kraft). Kraft is engaged in the design, development, manufacture, and installation of a-Si photovoltaic manufacturing equipment. The primary buyers of photovoltaic thin-film manufacturing equipment are businesses, as well as investment partnerships, engaged in the production of photovoltaic thin-film modules. In May 2010, the Company acquired Atlantis Solar LLC. In May 2013, Solar Thin Films Inc acquired Quality Resource Technologies Inc. In October 2013, Solar Thin Films Inc announced the sale of all of its ownership stake of Hungarian subsidiary, Kraft, R.t. (Kraft), to GJR Collectibles LLC.
Kraft has been providing equipment that is incorporated into a single manufacturing line capable of manufacturing a-Si solar modules that produce approximately 5megawatt (MW) of solar power annually. The Company focuses, directly and through joint ventures or alliances with other companies or governmental agencies, to sell equipment for and participate financially in solar power facilities using thin film a-Si solar modules or metallurgical and other crystalline solar modules as the power source to provide electricity to municipalities, businesses and consumers.
The Company competes with Applied Materials and Oerlikon.
Advisors' Opinion:- [By Peter Graham]
Small cap stocks Alliance Creative Group Inc (OTCMKTS: ACGX), Dale Jarrett Racing Adventure Inc (OTCMKTS: DJRT), Inscor Inc (OTCMKTS: IOGA) and Solar Thin Films Inc (OTCMKTS: SLTZ) have all been getting some attention lately in various investment newsletters and it should come as no surprise that two out of four of these stocks have been the subject of paid promotions ��which tend to benefit traders. However, two out of four of these stocks also have pretty good financials for being small cap OTC stocks and that might make them attractive to investors with a long term time horizon. So which of these stocks might make traders some profits in the short term and investors some profits over the longer term? Here is a closer look to help you decide:
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