A doubling in any of the companies mentioned is entirely possible, but it would be irrational. More likely, there could be a pullback in these companies, especially with solar energy plays. It will take several quarters to be sure that the glut in solar panels is ending, and that price erosion is moderating. Investors should favor solar suppliers whose costs are declining.
Sony shares could move either way in the near term. If a spinoff is planned, shares will keep rising. Conversely, Valeant will likely sustain its upward move despite the recent gains. The merger is enhancing shareholder value. This also gives the company growth in the area of dermatology.
Written by Chris Lau