I looked at Vivopower Intl ($VVPR) and I like what I saw. (February 01, 2021)
VVPR
I want to talk to you about VivoPower ( NASDAQ: VVPR ). This is a solar company, you could probably tell by the power part and the and the fact that this says solar here. But here’s the deal, I picked up this stock on one of my scans. I like what I am seeing here, it’s not like the perfect textbook time to buy, just because the stock already had a big run-up here, and then it’s pulled back.
However, the company has already reported earnings so that’s not an issue, The fundamentals on this company, as far as growth, are actually really, really good. If you are looking at it kind of in relation to the typical growth stock it’s not so good. But their profit margins, they finally made money, their profit margins are really, really improving a lot quarter by quarter.
The same thing with respect to their sales; their revenues are increasing and then this last quarter, again, ending September 3rd, they actually made money and that’s kind of rare for some of these companies. As I look at this stock, I like to get a long-term view of it relative to a lot of these other solar companies, at least this is kind of a mature company.
What’s the next catalyst? I’m not really sure that there is one. But their relative strength rating on IBD is 99. In other words, it is outperforming, basically, everybody. And so I like the way this stock is trading. Here’s what I would do, first of all, I would be mindful that over the past 5-days this has done nothing but sell-off, but it’s forming some support here.
I would just suggest watching this stock tomorrow. If the stock breaks above 13.50, if it breaks above 13.50 I think you can buy it and you keep your stop, it’s got to be a little bit loose on a percentage base, you should give it about a 10 percent stop. The reason I am looking at 13.50 is because this is today’s intraday high and if you look at the way this stock has traded, look at the successive highs here. A lower high than here, lower high, lower high, lower high, lower high.
This is the first time that there has actually been a higher low relative to the prior day. So for the first time in this pattern that I am drawing, we’ve had these lower lows, lower lows, lower lows even to here. And then finally, today is the first time we got a higher one. So you want to look at this, and this is kind of a short-term trigger, you want to look at this as your catalyst. Above 13.50, that’s the buy point here.
And again, then you just keep a stop just below Friday’s intraday low. That trade could work for you. But what if it doesn’t break above this level? Well, then there is no trade. It doesn’t mean that you take the stock off of your screen. It just means that there is no trade, not yet.
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