Tuesday, June 16, 2009

Notable Calls Network (NCN): A-Power Energy Generation Systems (NASDAQ:APWR)

Notable Calls Network (NCN) caught an interesting call today in A-Power Energy Generation Systems (NASDAQ:APWR):

- Around 11:55 AM a senior NCN member pinged me with the following call from Roth Capital:

'...Roth Capital right now with an unusual break-in on APWR, stock down .73 off earnings miss this morning. May fuel fresh shorts: Suspending Coverage

We are suspending coverage of A-Power Energy Generation Systems, Ltd. We believe the company's lack of transparency has created inherent limitations to our ability to gain adequate insight into the underlying fundamentals to confidently model and value the business. We believe this transparency has deteriorated further, impacting our ability to publish an investment recommendation. We will consider resuming coverage when transparency improves and underlying metrics become more visible.Prior to suspending coverage, we had a HOLD rating and a $5 price target. Effective with suspending coverage, prior estimates, rating, and price target should not be relied upon...'

- I immediately knew the call would have a negative impact on the share price of APWR. After all, the Roth Capital analyst was throwing in the towel because he could not work with information (or lack of it) APWR had been providing investors. That's rarely a good sign because investors (especially the big money types) like to know what exactly they are getting for their money. Uncertainty usually bring sellers.

Alternative energy sector is a fairly new one and cannot afford unambiguity.

So, over the next couple of minutes I distributed Roth's comments to other Notable Calls Network (NCN) memebers.

As you can see from the chart, the reaction was a rather aggressive one. Depending on one's entry and exit profits of up to 2 pts were to be had (pretty much any size).

This is how Notable Calls Network (NCN) works - sharing the flow. We catch them every day.

Want to be part of NCN?

It's easy. Just shoot me a brief email that includes a short description of yourself and your AOL nickname.

Please do note that contacts via IM are limited to people with:

- 3+ years of trading experience

- Access to quality research/analyst commentary

- Ability to generate and share (intraday) trading calls

I will not accept contacts from purely technically oriented traders, penny stock fans or people who have less than 3 years of experience in the field.

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