Sun at $3.85

As expected, Sun’s shares have fallen back below $4. While I saw trouble ahead, I have to admit that I did not see anything quite as dramatic as Wednesday’s 19% plunge on volume of 239 million shares, more than four times Sun’s usual volume. SUNW closed at $3.85.

Now we face the question of whether or not it’s time to get back in. Not yet for me. The news is bad, but it could get worse as other companies report and as this general rally faces proving points. The mood on the street could darken in August. If so, it seems that Sun would face an even angrier crowd that sifts through the earnings wreckage for signs of true survivors who will benefit from the big recovery — whenever that materializes.

I would venture that a company reporting an 80% drop in profits and a 13% drop in revenue, as Sun just did, will not top the list of healthy buy-and-hold candidates for the recovery.

So let’s sit tight. We’ve passed my first buy threshold, which was $4, but now I think we can get it even cheaper. Is $3 out of the question?

Keep your wits about you.

This entry was posted in Uncategorized. Bookmark the permalink. Both comments and trackbacks are currently closed.
  • Here are your three options:

    Option 1: Annual Subscription (no refunds)

    For just $200 per year, you’ll receive everything listed above to completely upgrade the way you manage your investments. This is 17% cheaper than the monthly option. This is what I recommend:

    Option 2:Monthly Subscription (no refunds)

    If you'd like to try The Kelly Letter  without paying the full year, you can pay $20 per month.

    Option 3:Free Email List

    If you'd like to hear more from me but aren't ready to part with any money yet, you're welcome to join my free email list:

    Join the free list

    Thank you for the work you do. You're a household name here and my wife and I often discuss your letters on Sundays. My ten- and seven-year-old children recognize your name and will eventually be taught to invest using 3Sig and 6Sig. You've had an enormously positive impact on our investing and inspired me to look at the world in more rational and clear terms than I did years ago. I'm sure that thousands of others would say the same. Kelly Letter subscriber Matt Barnes
    Matt Barnes
    Product Line Director

    Join Matt and thousands of other rational investors to invest without stress.

    Subscribe to The Kelly Letter  now!

Bestselling Financial Author