Year: 2015

BBD.B, Bombardier

Hamilton

bbd.b feb 12 2015 lbbd.b feb 12 2015 s

There are, reportedly, companies (as in banks) that are considered too big too fail. In Canada there is also a company too “je ne sais quoi” to fail. It is, par excellence, Bombardier. First of all it is a Quebec based, culturally French company with very few peers in its field, trains and planes. If Ottawa drops support for Bombardier it would invite succession of the belle province from the rest of Canada which would be an economic disaster, or at least that seems to be the thinking.

Secondly we used to be big, or at least on the cutting edge of technology, with our very own Arrow. That project was abandoned in a disgraceful manner under pressure of the Americans. No politician would ever want to relive that event. Psychologically it is comparable to killing your only child. It just is not going to happen.

Ergo at $2.50 from oblivion this stock has to be a buy. As it happens that is also where the 25+-year trend line runs! RSI and MACD are also signalling a turn. From an EW perspective we are not too sure but it could be a series of 1-2’s. 

FSLR

Hamilton

fslr feb 12 2015 log

fslr feb 12 2015 arith

We are not sure if there is indeed a triangle in the middle, the entire thing counts just as well as an a-b-c X a-b-c or double zig-zag. In any event a drop from $320 to $11 have all the attributes of a serious correction so there is no compelling reason to expect any further drop. So both the structure and the magnitude support the notion that we are in a new bull market. Wave 1 went from the low of $11 to almost $75 and then drops to $39 in wave 2 (62%!). We are now in wave 3 which could go to $175 or so.

AAPL just bought $850mln. equipment from this company in order to create one of the largest solar installations in California. This should power all of AAPL’s  needs for the next X years. It is on grid so the local utility is part of the equation.

ACQ update

Hamilton

ACQ feb 11 2015

Tomorrow, on the open, this stock will probably sell at $46+. That is not bad since you could have bought it 10 days ago at $33, a gain of about 40%. Should you sell? If this makes you nervous and you do not work with stops, perhaps. At that level you will have done the bare minimum of an a-b-c bounce. If you are slightly more entrepreneurial , or greedy, you may want to stay around and see if this stock cannot reach the 38% retracement at around $54. Depending on the structure (5 up for a) you definitely want to get out there, and, perhaps, get back in at around $42, give or take.