To OTC Journal Members: 
 

Santa Puts Solar Energy Initiatives (OTC BB: SOPV) In His Bag

Santa wants you to open the first present he's delivering this year. Hopefully, it's a trading profit present, and you need to open the package first thing this morning to have your best chance of Santa's gift paying off.

Solar Energy Initiatives (OTC BB: SOPV) is an under followed and oversold solar company out of the South East that's getting Municipal Scale Power Systems installed. According to their recent 10K filing with the SEC that contained their FY'10 audited financial statements, SOPV has already installed 3 Mega Watts of solar power generation. 1MGW goes to a Southeast Municipality.  Another 2.5 Megawatts has been inked in a Power Purchase Agreement with the Tennessee Valley Authority. 

2.5 Megawatts of power generation is slated for ground breaking installation in Q1'11. In all, it added up to $4.4 million in revenues in FY'10, up 16% over the previous year.

The company came public about six weeks ago- opening for trading just over $.40, and as you can see from the chart, climbing to $.70 over its first week of trading history. Someone notched a 75% gain in this stock's infancy.

Profit taking and quieter trading ensued, and now this one is ready to bounce in my view, and likely bounce big. It's time for this stock to come off the canvas as investors start to realize there's another surge imminent in SOPV.

Here's what you want to look for. If you see surging volume in the morning, it's likely this stock will trade up nicely. The reason- it's completely blown out, and has traded on very light volume for the last month. These are the kind of stocks that can rebound easily.

In a rebound, the stock is likely to immediately recapture 38.2% of the drop (Fibonacci Extension). This would take us to the first circled number- $.452. If the stock can get convincingly through $.46, look for $.54- 61.8% rebound of the drop, as the level you should consider selling for an outstanding short term trading profit. 

Based on Friday's close at $.36- these levels would represent profits of 27.7% and 50% respectively.

In order to be in position to make these kinds of trading profits, you are going to need to early, and act decisively. As with all these trading ideas, limit your losses to 10% if you act late or it goes against you.

This is the season of giving, and I believe SOPV is positioned to give you a trading profit Santa would be proud of.

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