Spire Corporation (NASDAQ: SPIR, SPIR message board) stock performance has been fascinating for the last half a month. Gaining more than 50% since mid September, this solar stock is currently amongst the top performers. The rally started after Spire has received large solar module order from GreenBrilliance LLC. And it seems this even only ignited the increase in price, as the company's performance was getting better even without this order. The company has been cutting losses and saw significant improvement in income statement compared to the last year. All this makes SPIR an attractive stock but current situation has a downside.
The volatility is currently huge and stock is way overbought. Although major indicators not yet show any signs of trend reversal it looks risky to jump on board right now. The price has already moved significantly and should soon reach a choke point. Also, the stock is reaching out without significant increase in trading volume which is also not a very positive sign. Furthermore, the slight price drop on October 2nd might be indicating a beginning of trend reversal.
But all this only indicates risk and doesn't mean Spire is necessarily going down tomorrow. SPIR is also interesting for its historical trading ranges. The company's share price tends to get considerably large corrections over a short period of time. This shows an opportunity to make money from the fall or rise of this stock if investors would get in at appropriate time.
With improvement in fundamentals and tendency for large scale moves, SPIR is surely a good stock to keep an eye on.
Reference:
http://www.spirecorp.com/
User comments