Opinion on  Energy Conversion Devices Inc (ENER)     Sector: Technology  >  Industry: Electronic Instr. & Controls
A quicky with ENER

ENER has held USD 25 several times. The stock has become more volatile. I think that buying around these levels and getting out in a few days/weeks at around 28.50-29.00 has a good chance of realizing.  

Energy Conversion Devices (ENER - USD 26.00) is an alternative energy technology company on our watch list. The company makes solar cells and fuel cell batteries. European readers may remember that we sold some June USD 30 puts at USD 3.60 back in February and closed them at USD 0.35 in April. The company reported on Wednesday its fiscal fourth-quarter loss widened as restructuring and other charges offset revenue growth. It expects to post a fiscal first-quarter 2008 profit of $40 million to $45 million. Figures are disappointing. Shares in ENER have now fallen almost 15 % in 2 days and 25% over the last 3 weeks. We still find ENER an attractive play in alternative energy and would like to take a small position in the stock. We give an order to sell 2 puts October 2007 USD 25.00 at a price of USD 1.65. Our break-even price then is USD 23.35. If filled we receive an upfront premium of USD 330. The actual option price can be seen here: http://finance.yahoo.com/q?s=EQIVE.X. For a chart click here: http://stockcharts.com/charts/gallery.html?ener.