If you're looking for a beaten-down name in the solar sector that could be a great January Effect trade, then take a hard look at Hanwha SolarOne (HSOL), a manufacturer of silicon ingots, photovoltaic cells and PV modules. It also provides PV cell processing services and PV module processing services. This stock is down huge in 2011, with shares off by over 88%.
This stock is currently trading about 6 cents off its 52-week low of 99 cents. This is another beaten-down penny stock that has come all the way down from its 52-week high of $9.78 to its current level of $1.05 a share. This is another January Effect candidate with an extremely low float of just 22.28 million shares. The bears control 3.26 million of those shares through short positions. If the January Effect kicks in for HSOL, then this stock could easily experience a big short-squeeze.My trading plan for HSOL is to buy the stock off any weakness and simply use a mental stop that's around 10% below that recent low of 99 cents a share. You could also buy off strength and get long on a breakout over $1.15 a share on high volume. Look for volume on that breakout that's tracking in near or above its three-month average action of 858,961 shares. Target a run back toward the 50-day moving average of $1.66, or possibly even higher. I also featured Hanwha SolarOne earlier this month in "5 Stocks Under $10 With Big Upside Potential."
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV