The name is derived from the degree of purity of the metals that it makes, as in 99.999%. It used to produce almost exclusively for First Solar (FSLR), a company that has recently announced lay-offs etc.etc. (see elsewhere in this blog). In the meantime a whole different business was bought so now solar panels represent only a small portion of the company’s business but in the process the company got burdened by a lot of debt. Back in 2008 this was a darling for speculators who were perhaps carried away by the purity of the enterprise. Here are the charts;
The Bigchart is on a semi-log scale, and the shorter-term one on a normal arithmetic scale. Looking at the Bigchart it could be argued that an entire correction from the $14 high was completed today at about $2.85 with C being vector equal to A, and a loss of more than 79.6%. The smaller chart displays a very nice wedge formation that has hit the lower boundary precisely. Furthermore the stock appears to have fallen out of a minor degree triangle which suggests that a bounce to $5 might be in the cards, even if this is not yet THE bottom! As always, no guarantees.
By the way, this is an excellent “model” for what could be expected for most stocks once the bear is complete. A little red arrow indicates approximately where we are right now in that process.