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With HOKU it’s a “free stocks” landslide: sold 110 HOKU SCIENTIFIC at + 40% June 26, 2007

Posted by deminvest in green stocks, growth stock, HOKU Scientific, investment, my free stock, nasdaq, Nasdaq stock, risky investments, Single stocks, stock I own, stocks, STP, suntech.
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…And 3 hours later went up + 52%…

Hoku is also the name of a good looking model

Let’s calm down a bit and tell the whole story (which is an example of how to “sell earn and cry“)

1) On Apr 27, 2006 I bought 150 HOKU shares at $7 each, spending a total sum of $1050. I mainly did it because it was one of the few green high tech ( hydrogen cells) companies which did actually have earnings. I knew it was a crazy move

2) A short time later HOKU was down 60% because they seemed to give up their hydrogen cell technology to build polysilicon for solar plants. That way HOKU admitted that their “Proton exchange membrane (PEM) fuel cells” wasn’t good enough. I inserted HOKU in my “investing mistakes” list, but did not sell it. I never sell a stock unless it goes 40% up.

3) HOKU must have very bright and aggressive managers. The entered the solar business very aggressively, secured large loans, started building huge plants, hit the right moment, when polysilicon is a scarce resource required by world’s major solar panel producers, so they signed with customers like Suntech huge contracts, worth hundreds of times their current yearly revenues.

4) as Pickard forecasted on his blog five days ago, Hoku stock – price skyrocketed (too bad Pickard didn’t buy any…).

5) Yesterday morning HOKU was 40% up from my buy price. According to my “New free stock strategy” I sold 110 at $9.71 getting $1068.1 (which is more than I spent). I still have 40 HOKU shares which are now free for me. HOKU continued to run and it closed at 10.74. OI could have sold 10% higher just by waiting 3 hours! But it’s ok to “Sell earn and cry“. Crying after earning is much better than crying after losing hardly earned dollars!

With HOKU it makes 6 stocks that I have turned into free in June. About $9000 back into my bank account and about $3000 worth of free stocks. A lansdlide win!

… Actually seeing such great success I did a few things outside my strategy, that may cost me dearly… Will post about them later… Discipline is such a difficult word for a passionate unprofessional investor like me! 

Comments»

1. len - June 26, 2007

congratulations! u win some u lose some u cry.. u laugh..u enjoy.. u get ecstatic.. u make mistakes for a moment and recoup in the next cycle.. one thing important is u do not lose urself : )

2. Eric Nagel - June 26, 2007

Do you ever re-buy when a stock you believe in plummets like this one did?

Do you have your current portfolio posted somewhere?

3. deminvest - June 26, 2007

I never average down… you did already find my post about it. For everybody else as reference:
https://deminvest.wordpress.com/2007/01/23/why-we-the-people-should-never-ever-average-down-any-stock/

4. deminvest - June 26, 2007

NNNNNNNNNNNNOOOOOOOOOOOOOOOOOOOOO!!!!

I just noticed HOKU is up 72% from my buy price:

I SOLD THE CHICKEN THAT LAYS THE GOLDEN EGGS!!!

5. deminvest - June 26, 2007

ERIC, I am thinking to publish my portfolio on a site I found: http://icarra.com/index.php

Right now I set it up for you on http://www.deminvest.com/

6. D Pickard - June 26, 2007

You can bet that I bought Hoku Thursday morning (at $8.19). I sold most but not all of them today at $12.25. I’m happy. 🙂

I figure that most of the drive up is over, until some new news comes about. I think the price of Hoku is going to settle a bit, but I’m not going to wait too long before I get back in.

BTW, I’ve built a resource at my main site that you might be interested in. Check out
http://www.americansolareconomy.com/MarketDataMain.aspx
Give it about 10-15 seconds to load. It’s a sortable watchlist of solar stocks w/ data from Yahoo, along with some added bits of info.

7. deminvest - June 26, 2007

That’s cool Pickard! I read on you blog that you didn’t own any HOKU till Wednesday. It’s just great that you got them on Thursday, and in 4 days you made a 50%, which is more than I could get in year. Congrats!
And thank for the link to solar stocks. I own some Suntech and I do think it is the best one on your list. Am I wrong?

I’ll check your Blog often. Really you had a great shot on Hoku and you seem to know green energy finance very well.

8. Charles - June 26, 2007

i bought in at 3.20 and I’m still holding on at + 377.5%!

9. D Pickard - June 26, 2007

Really you had a great shot on Hoku and you seem to know green energy finance very well.

Actually, I’m pretty new to this, though I know energy well, I have only some reasonably educated guesses about the finance part. Hoku wasn’t too tough to call, I think, and I got lucky. 🙂

I own some Suntech and I do think it is the best one on your list. Am I wrong?

I honestly couldn’t tell you much about the quality of Suntech in particular. Of course, I love that they gave Hoku a contract, but I don’t know the ins and outs of the Chinese Manufacturers. In the long term, I feel that the Chinese Manufacturers are going to be battling each other for market-share, and I haven’t a clue who will come out ahead in the end.

10. deminvest - June 27, 2007

Charles,

you are really cold blooded. If I were you, with such a gain, I’d sell 27% of my HOKU shares to get my invested money back and keep reamaing 73% of free shares forever… But actually if I were you I’d have sold most of HOKU shares around 4 and would have missed most of your gains!

11. Miguel Salazar - May 16, 2008

Great post.

Personally, I’m betting big in the solar sector. I believe it will be huge in the future, with rising oil prices. I’m currently holding ESLR, JASO, SOLF and WFR, and considering entering in either ASTI or DSTI.

Stay safe, stops are in, emotions are out!

12. deminvest - May 16, 2008

Miguel,

In the solar sector I’m an happy owner of great Chinese Solar Panel producers STP and TSL. I’ll also carefully look at your stocks. Thanks for suggesting them to me.


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