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HOKU: A comment by danielfrederickson that made my day January 22, 2007

Posted by deminvest in growth stock, HOKU Scientific, investment, My investing mistakes, nasdaq, Single stocks, stock I own, stocks.

this morning I found Daniel’s comment on Deminvest:

Daniel : “scroll to the bottom of your portfolio… did you ‘hold’ >HOKU”

me: “What does Daniel mean?”

“OK let’s do as he says, let’s give a look at the bottom of my Portfolio, where HOKU is stuck since ages… about -60%.”


“Where is it?”

“Did HOKU disappear from the bottom of my Portfolio? It sure did.”

“NOOOOOOOOOO maybe they went broke or were delisted”

“Wait… Look… They went up! HOKU doubled its price!

the good news? HOKU announced a mega huge contract with Sanyo. The contract, valued at $370 million is 60 times larger than HOKU’s last year Revenue of 6.16M. Another very good news is that HOKU’s stock price doubled its value…

So what’s wrong? Nothing for most investors, my only problem is that I bought HOKU at such high price ( $7 ) that i am still loosing 12% of the $1000 I put on that disgraced company!

I have little temptation to buy a few more HOKUs, but no i will not for several reasons:

1) I never average down… Actually I try not to… Actually I used to… Actually I joined a help group of “Averaging down” addicted people, and I almost managed to get rid of that habit… In some post I will explain what is “averaging down” and why you shouldn’t, unless you really know what you’re doing, which is not the case if you’re similar to me.

2) The company is still so small and has such growth opportunities, that even with my small number of stocks, I can make lots of money if they manage to become big.

3) Please help me to stop myself from averaging down. I don’t want to take this great news as a good reason to average down!

4) I still don’t understand what HOKU really does.. And… a simpleminded proletarian investor should never invest in a company he doesn’t understand well.

5) Actually, from what I read around, not even Hoku’s young managers have understood what they do: they seem to have have added to their battery cells business a solar panel business. When GE does so, you can suppose they want to diversify and they have the resources, when HOKU does the same, I tend to believe that they start to consider their battery cell business… not so great!

So I will hold my 150 HOKU, sit and wait. If some day HOKU will reach $10 mark, I will sell 100 of them to get my money back, and keep the free remaining 50 forever.

BTW… Daniel…

Thanks for the good news!


1. Gene Breijer - January 23, 2007

Interesting that you should mention HOKU, as I have been tracking it for the past few days. Check out my chart and comments. Hope this helps you. I trade based on technicals only, so if you have any questions about the chart, please ask. Good luck in your trading and hope you can get your money back and then some!

2. deminvest - January 23, 2007

Gene, I know you your experteese is on techinacal analysis, and I really appreciate the way you study the other side of the coin.

Actually I think we should tell each-other which stock we are going to cover, so we can do it from both technical and fundamental point of view (… I am presuming too much to call my simpleton’s chatters “fundamental”).

But really Gene, I think that when a stock jumps 100% in one day because of a huge contract signed, in my opinion this doesn’t have anything to do with technicals… I bet you disagree!

3. deminvest - January 23, 2007

btw anybody interested in Gene’s technical analysis on HOKU :


It is interesting, although it may need some update since the stock doubled its price in a few hours.

4. HelloWorld - April 28, 2007

Peace people

We love you

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