6evergreensolar.gifEvergreen Solar, Inc. (NASDAQ: ESLR, ESLR message board) seems to have stopped after continuously moving up for three days in a row. The stock of this solar power product manufacturer suffered in August after the company posted lowered income and increased expenses.

Still, things might not be as bad as it looks for the company. It seems the stock has overreacted back then and is currently underpriced. Also, share price recovery seems to be underway. As there is no downtrend that would provoke further price drop, it may be assumed stock price will return to the pre-drop levels or at least somewhere near.

The stock has been traded at much higher price during the year, despite poor fundamentals of the company. Although the quarter to quarter growth seems to have slowed down, a year to year revenue growth remains strong and that means nothing has actually changed to the bad side.

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The company is not yet able to generate profit, but their overall growth in sales shows progress towards that. Evergreen has more than enough cash to finance operations for the coming year and the fact there are not leveraged gives an idea there are no major financial problems at the moment.

For conclusion, this stock is now looks undervalued for it historical trading ranges and it will most probably climb back up to where it fell from. Actually, without a clear downtrend it might take just single good news release to make that happen.

Reference:

http://www.evergreensolar.com/