I monitor a number of boards including our own Stock Hideout.  “Supposed” hot stocks are flying all over the board, so that I almost have become immune to all of the hype.  However, one name that keeps popping up (so much that I can’t ignore it) is Atlantic Wind and Solar (AWSL).  I must admit that I first heard about AWSL in mid-August when it was around $1.20.  Looked interesting, but seemed extended. Boy, was I wrong.

AWSL reached an intraday high of $4.84 today. It was a rocking stock, too.  Short sellers hit it and it dropped down to $3.02 only to recover strong and close at $3.89.  The question that it begs is are the short sellers going to rule or not.  Tim Sykes was all over AWSL and, while he is right that it has been promoted vigorously, I am not convinced that it is going to fall.

AWSL (The Company) - Whoever wrote their website copy majored in expressive writing in college, but I was able to cut through the flowery speech and figure out what these guys do.  They are aiming to be in the forefront of the wind and solar revolution that is sweeping the world.  By partnering with corporations, associations, land and business owners, AWSL will install, service, manage solar and wind installations that can range from a single rooftop to a full parks.  They are touting relationships that they are working on that will drive them to profitability and a pre-eminent position in the industry in a short time.

The important thing to remember that solar is not the answer to our energy dilemma, just part of the answer.  Most solar installations have a hard time running…um, in the dark for instance.  However, a combination of tax incentives, energy savings, profits from sale of excess energy and the cachet of being green should make this a hot commodity to their intended customers.

Keep in mind that AWSL has two things going for it:  News and Chart

The latest release proclaims that “AWSL Strengthens Alliances and Declares Dividend”

AWSL has a small float (under 20MM shares I am told) and this dividend will increase their market liquidity.  The release went on say, AWSL has “declared a 1-for-3 stock dividend, payable on December 7, 2009 to shareholders of record on November 23, 2009. For every three (3) common shares held on the record date, shareholders will receive 1 free additional share on the payable date.”  That to me will spur more buying in the stock.

Another release that I find encouraging is that they have retained an SEC auditor to get them compliant as part of their plan to upgrade their stock listing (AMEX would be my guess).  It is about time!

Here is their chart with my comments:

Also of note are several insider buys.  Two insiders have purchased a combined $3.2 million in stock at prices ranging from 50 cents to $1.54.  Obviously, they are betting that AWSL will go a lot higher.

My conclusion is that traders should radar list AWSL.  If you trade it, make sure you have a tight trailing stop on it.  Take the gains as they present themselves.  If the stock goes up appreciably, you can relax the trailing stop so you don’t get “stopped out” on any dips (and there will be some IMO).  If this stock gets hot, it could be a $10.00 stock based upon the buzz about it…..Don’t trust buzz though.  I would like to see AWSL start booking deals, signing contracts, getting necessary financing, become a reporting company, etc…, but until then I still remain a fan.

Good luck and good trading

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