Alternative Energy Stock Bulls Should Target

7 Rules for Banking 8%+ Dividends (and 100%+ Gains) in Closed-End Funds

Fuel cell manufacturer Bloom Energy Corp (NYSE:BE) is getting its teeth kicked in on the charts, along with the rest of the broader market. BE is down 7.1% to trade at $20.11 today, and is now nursing a 20% deficit for the month of September. If there’s any consolation, this month’s pullback has bullish implications for the stock, if past is precedent. 

In the past three years, there were three other occasions where BE was within one standard deviation of its 160-day moving average after an extended stint above it, per Schaeffer’s Senior Quantitative Analyst Rocky White. One month after testing this trendline, the shares were higher two-thirds of the time and sported an average return of 25.3%. From its current perch of $20, a move of similar magnitude would put the equity around $25, filling in its September bear gap.

BE is a sleeping giant of sorts, from a contrarian perspective. A healthy 10.8% of the stock’s total available float is sold short. At the shares’ average of pace of trading, it would take shorts almost six trading days to buy back their bearish bets. 

Options are flashing as an intriguing route for an investor. The security’s Schaeffer’s Volatility Index (SVI) of 76% stands higher than just 24% of readings from the past 12 months, suggesting that these players are pricing in low volatility expectations right now. What’s more, the stock’s Schaeffer’s Volatility Scorecard (SVS) stands at 99  out of 100. This means BE has tended to outperform these volatility estimates. 

Whoever coined the expression that patience is a virtue probably never invested money in the equity markets. It can be excruciating to see a stock’s price plummet. And that’s particularly true when the stock was possibly at all-time highs just one year ago.

Here’s the good news. In some cases, the reasons you liked the stock still exist. If that’s true, then there’s reason to believe that the stock price may recover.

The bad news is there’s no way to know for sure when that will be. And anyone who says they do is not telling you the truth.

So what’s an investor to do? We believe the answer is to be selective. And right now that means looking at best-in-class stocks that are built to ride out recessions.

In this special presentation, we’ll give you seven stocks to consider as you look for safe stocks that give you an opportunity for growth and that pay a dividend for good measure. Here are the 7 recession-proof stocks that will let you wait out this bear market.

View the “10 Recession-Proof Stocks That Will Let You Wait Out the Bear”.

Written by Steve Ives