SELL in MAY & GO away...WILL it WORK ????

There is a popular myth in wall street that "sell in May & go away"...works all the time???

In wall street no myth is ever accurate.....it is selective truth we are dealing with....

Many strong stocks have "multi year RUNUP".....check AAPL,RIMM,POT...they are going UP & UP for many years they have DOUBLED in past two years MINIMUM..... RIMM & POT actually have QUADRUPLED...RIMM is my single best idea in the last TWO years......

Both AAPL & RIMM are poised to double from here AGAIN !!!!!

So if you sold in May and have gone fishing...then you will NOT catch AAPL,RIMM or Solar $$$$..

So...what looks good for June to December...I say Tech,Solar will be in the front line of rapid gain....

For bargain hunters Home builders,retail & refiners...will "show you the MONEY"

Last year darlings will take a well deserved REST....as all the good news are in the price already...

So .....as you know i am positioned in RIMM,AAPL & SOL & as of Friday my $ weighting is :

AAPL 27.4%

RIMM 52.5%

SOL 20.1%

You MAY ask why such a concentrated position in 3 stocks only?

Because ......based on their rapid Sales & EPS growth they are all set to DOUBLE ...so why mess around with IFFY ideas ...if one has CONVICTION in 3 best stocks.......

..............................SOL .............AAPL..........RIMM

Sales 12/08...............$575.36M..........$32.68B....$10.31B

Sales 12/09...............$874.30M...........$39.42B...$13.90B

Sales Growth rate.....+52%.................+20.6%.....+34.7%

EPS 12/08.................$1.26..................$5.22..........$3.86

EPS 12/09.................$2.00..................$6.34..........$5.24

EPS Growth Rate....+58.7%................+21.4%.......35.7%

Stock Price Target....$40....................$220...........$200

Current stock price $25.08................$188.75.....$138.87

Potential gain...........+59.8%................+16.5%......+44%

Not a bad picture for Buy in May and WAIT for the GAIN !!!

SOL secondary offer to sell additional 8.15 Million shares plus over allotment of another 1.35 million shares equals a total offering of additional 9.50 million shares which IS a dilution of 16%...

The purpose of this offering is to use $70 million in one plant Expansion+ Equipments & $100 million in another plant construction & equipment...which will BOOST SOL Sales & EPS in 2008 & 2009 .....BIG TIME.....the rest of the money is to be used for general corporate purpose......

SOL has NOT priced its secondary offering YET.....I expect it to be priced @ $22.50...so SOL will get $22.50 X9.50 million shares =$213.75 million....after all cost/expense SOL will end UP with $210 million $ for expansion...& a major boost to Balance Sheet.....where $210 million will earn interest also......

As SOL is NOT doing convertible...there is NO interest cost and there is NO provision to give shares for Shorting to buyers...generally there is a complete restriction of sales for up to 6 months......

I do expect shares to DROP to $22.50 area and then recover @ close near $23...so a drop of $2 or 7.9% IS NORM.......

SOL will start recovering when the pricing of 9.50 million is announced...which could be as early as Tuesday......until then SOL will be blocked around $23.50 area......

So....based on above scenario.....one should be positioned to buy more SOL on weakness !!!!

BLOG does NOT give buy or sell.

PS....mother is recovering fast thanks to all well wishers....she spoke last night around 8.30 PM and was sitting comfortably in chair.....only minor discomfort in her surgery area.

Saleem