Huge deviations from 200 day moving average

When a securities price gets at extreme levels relative to its moving average with no accompanying change in information, profits are at hand.  I suggested selling emerging markets in (November 2007, 11/1/2007) and suggested that they are only half way done in (Emerging Markets, 11/19/2007).  I have used the 200 day to show other get out of the security trades, but I think this will be the first get into security trade.

THEREFORE, KNOW I BOUGHT DSTI between $3.89 - $4.05.



Daystar Technologies, a solar cell manufacturing company just issued 15 million shares at $4.25, so you are buying below this secondary offering.  Next, I really like solar companies and while my call on the sector was a good one (Solar Power Theme for 2007, 1/2/2007), security selection was pretty darn poor.  Never the less, I believe that Daystars' non-silicon based cells offer the greatest growth potential given the limited silicon supply and recent changes in location, manufacturing capacity and management.  Lastly, the 200 day moving average is still going up, and there is a potential 20% return, if the price moves back towards the averages.

One last thought, American imagination and its application to solve global problems is our best export.  Alternative, clean energy that is affordable in not only in the emerging markets best interest both economically and healthwise, it is in our best interest also - economically and healthwise.
 

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