As headline suggests i sold my sunways stocks after earnings report. Sales were much higher than at the same time last year, but profitability got weaker significantly. The reason was much higer raw material costs of silicon. Huge demand makes silicon prices go up and smaller companies suffer the most with narrower margins. The other reason is that there are no companies making solar grade silicon which would be cheaper than they use nowdays.
I sold sunways stocks at 7.13€ and share price is currently about 7€. I made about 3% loss with sunways. All investors have to have guts to sell sometimes in red if you know share is going lower or you think it is time to sell.
So who profits on high silicon prices then? One step up are wafer manufacturers that are reporting good earnings, like LDK solar. So one logical step would be to buy LDK stocks instead. But for now i will look for while where markets are going. The other thing i learned in addition to selling in red is that stock picking is not easy. Though there is an easy solution called ETF. So might buy solar ETF, like ticker: TAN to get growth from solar panel industry without risk of individual stock.
My post is alredy too long so i spare my possible 3rd quater investing ideas for next time.
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I suggest you to learn some more English and then come back to this column.
The only way to learn is by writing and that is the main reason i use english, like it or not.
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