Hammond my largest position updateHammond power solutions stock is finally having a meaningful correction. It has blasted through my DCA zone and I continue to slowly add shares here. The 200 EMA is about to be tested which usually acts as a strong support. This rapid decline is due to stock based compensation which was rather intense, heavily cutting into earnings. The team does deserve it after a monster two years, not so long ago the stock was at 10$ per share. This is my main energy expansion play aside BN. I buy these shares and I do not check the price very often.
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Hammond hits 1.618 fibHammond is my largest single stock holding for obvious reasons. We just hit the 1.618 fib, I have been searching heavily for any pullbacks on this stock and we simply arent getting them. Analysts are now projecting 170$ targets. If we are going to pull back it should be around now since this is a very key extension level most of the time.
-Short-term bearish hoping for a discount
-Long term this continues to be my best performing stock
Hammond electric vehicle playHammond I covered a few times in the past. This illiquid small cap is a larger player in my portfolio and performed exceptionally well last year. Momentum wise, the stock just confirmed the almighty golden fib. I expect great things from this compounder in the future.
My thesis for this stock revolves around the fact they are one of the major players in the transformer market. These transformers simply do not last as long as they used to since they do not have the opportunity to cool down at night. Electricity is being widely used in the used to be off hours, and transformer lifespans are a fraction of what they were. I believe this stock will outperform TSLA and it still goes unnoticed by large institutions due to its size and lack of listing on major US exchanges.
Hammond maintaining 52-week highHammond tends to peak RSI around 85 and that area is marked with the dashed green line. This stock has extreme momentum on very strong financial performance. The stock also recently broke a key 500 million dollar market cap. A medium term downtrend was broken as well showing strength both medium and long-term. I do expect the RSI to come down soon but that does not mean there are a lot of sellers in price discovery land. Hammond is about 6$ above a local demand zone and looking to edge higher. I predict a 2 billion dollar market cap by end of 2025.
Hammond broke all-time highsHammond is a thesis I am very excited about, I should write a full article on it. This companies earnings just blew expectations out of the water. The sideways channel is broken and the company is cleared to hit a 1 billion dollar plus market cap which will garner attention. If this stock gets listed on NYSE I will be very amped about it.
Hammond Power falling out of channel but reboundingHammond is my newest long-term position, between their amazing quarterly performance, and the increased need of transformers world-wide, I believe it has a safe moat. TA wise the stock fell out of its exceptional channel and fell below the 20SMA. Looking to reclaim momentum back towards the channel or at least staying above the 20SMA.