AEIS-Retracement to critical levels (Buy @ $31, Q2 2019)
This is an overall call based on a presumed uptrend in Solar Energy interest in the global market upon conclusion of current market fluctuations, initiatives like California's mandatory home solar, and general consumer interest in renewable energy.
AEIS is selling picks and shovels during a gold rush, heavily focused on supplying semiconductor and renewable industries with the materials needed. They're a proven company that has survived multiple recessions and corrections, and facilitated three separate purchases of smaller companies over 2018(Lumasense, Trek Holdings, and Monroe Electronics) . Their share prices are in freefall, much like in late 2000 due to earlier missed earnings, which as of Q3 2018 they have returned to surpassing EPS expectations. 95.63% of the stock is owned currently by institutional investors, meaning very little supply available for trading on a day to day basis.
A similar 80% retrace from ATH like in 2000 places price sub $19, and the ensuing bounce of 190% would push it to $55, similar to institutions current targets. This last ATH was also fueled by a significant trendline break from the 2007/2014 Highs, which should provide support around $31 in Q2 2019, and the lower trendline from previous bottoms will provide support at $29
-Strong fundamentals
-Weak previous earnings counteracted by stronger recent corners
-Heavy buy support between $29-$31
AEIS is selling picks and shovels during a gold rush, heavily focused on supplying semiconductor and renewable industries with the materials needed. They're a proven company that has survived multiple recessions and corrections, and facilitated three separate purchases of smaller companies over 2018(Lumasense, Trek Holdings, and Monroe Electronics) . Their share prices are in freefall, much like in late 2000 due to earlier missed earnings, which as of Q3 2018 they have returned to surpassing EPS expectations. 95.63% of the stock is owned currently by institutional investors, meaning very little supply available for trading on a day to day basis.
A similar 80% retrace from ATH like in 2000 places price sub $19, and the ensuing bounce of 190% would push it to $55, similar to institutions current targets. This last ATH was also fueled by a significant trendline break from the 2007/2014 Highs, which should provide support around $31 in Q2 2019, and the lower trendline from previous bottoms will provide support at $29
-Strong fundamentals
-Weak previous earnings counteracted by stronger recent corners
-Heavy buy support between $29-$31
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.