Friday, May 16, 2008

Solar stocks burn the bears! GRMN on deck next!

SolarFun (SOLF 22.84) was up $4.36 on option expiration today, burying the bears who laid out 15 million shares short in the teenage range.

ReneSola (SOL 26.04) was under 19 Monday, and reported good earnings Wednesday, and ramped, following in the footsteps of Canadian Solar's (CSIQ 44.90) good numbers Tuesday.

So why would you stay short SolarFun? Because back in January, SOLF raised $150 million in a convertible offering at $19.13. So the hedge funds shorted common against the convert. The downside pressure in SOLF from the shorting, brought all the solar stocks down.

Too simplistic for you? Not for Wall Street. The same con was used with Apple Computer. After Apple reported earning in January, the stock was knocked down to 137, from 155, down from 200, on the way to 116 and change. Tech investors thought if Apple, the best stock in the market, could drop 40%, then anything could. So the lemmings furiously sold. They sold the stocks right off the cliff. How smart was that?

Take a look at Garmin, (GRMN 50) which has been hammered from 120 down to 50, and up from 42 just this week. Option expiration capped the stock at the 50 strike. Look for it to ramp again next week.

The catalyst? How about 11 times earnings and $1.1 billion in cash, and lifetime navigation with your Blackberry for only $99? This news was inexplicably missed by some of the wire services:

OLATHE, Kan./May 15, 2008/PR Newswire—Garmin International Inc., a unit of Garmin Ltd. (NASDAQ: GRMN), the global leader in satellite navigation, announced today a one-time-purchase plan for Garmin Mobile for BlackBerry. This one-time, $99.99 purchase is only available in North America and will give customers who own BlackBerry devices unlimited use of Garmin Mobile’s turn-by-turn, voice prompted directions for the life of their specific BlackBerry. Users will also have unlimited access to Garmin Mobile’s dynamic content such as traffic, weather conditions and forecasts, fuel prices and more. The one-time purchase Garmin Mobile for BlackBerry is designed to meet the navigation needs of customers who prefer a one-time purchase rather than continuous monthly payments.

Friday, after the market closed, Garmin was on Oprah's semi annual "top pick event.

Garmin gets an Oprah endorsement
The Kansas City Star
Oprah knows what she likes, and Oprah likes Garmin.

Members of the Oprah Winfrey Show audience went home following a recent show with a pink Garmin Nuvi 250 and a slew of other gifts dubbed summer must haves by the queen of talk TV.
The show airs today at 4 p.m. on ABC.

“If you watched Gayle and me on our road trip last year, you know there’s nothing worse than getting lost,” Winfrey said. “And we got lost a lot — but you don’t have to. We found the perfect road-trip gadget. This is the Garmin Nuvi 250 navigator in pink. It’s portable and small enough to fit in your pocket.”

The show was Oprah’s semi-annual “top picks” event. The pink Nuvi was included with items like swimwear, makeup and a Weber gas grill.

Oprah and BlackBerry. That's all you need to know. Wall Street ain't that complicated.

Look for 62 on this number next week.

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