$CSLR Looks to be a “W” Bottom FormationI have posted about NASDAQ:CSLR before (link below). Just based on technical signals it looks like this one may be ready to pump up to around $2.40 a share. From yesterday’s close of $1.78 that is a $0.62 move or 34.8%. That is the initial target price. If all goes as planned by the company this has the chance of being a $6 or $7 stock in the next 12 to 24 months.
There are fundamental reasons for this pattern: 1. This is a turnaround story. They themselves were rescued from the hands of bankruptcy last April by T. J. Rogers, Cypress Semiconductor Founder and Billionaire and spearheaded a turnaround of NASDAQ:ENPH and early backer of SunPower.
2. As luck would have it, SunPower CAPITALCOM:SPWR is now headed to bankruptcy and NASDAQ:CSLR is the stocking horse bidder to acquire their best assets.
3. As of yesterday, Sept 9, 2024, they have secured the $40mm needed to fund the assets of SunPower.
But, getting back to the technical, when measuring how far one might expect the stock to rise here, you take the price of the first bottom to the middle top then add that price to the middle top. See chart for more details.
This is a low float stock for now and price can and will jump around. I have been up over 60% on my shares and down as much as 20% since I started positions back on May 7, 2024 (I have added 5 times since then and have a good sized position overall). Keep that in mind if you think this is one you want to participate in. They are not yet out of the woods but they do have big investors that are taking this chance too.
As always, these are my ideas, and this one has greater risk than most. A traditional stop loss is not recommended but you should have one. If I were just getting involved mine would be around the 50 DMA (Red). Ideas, NOT INVESTING ADVICE.