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Monday, May 9, 2011

a heads up... ITRI

If anyone wants to play the smart grid, ITRI is the pure play on meters. (early cycle play on the trend)  It has consolidated significantly, and at pretty interesting valuations.  The consolidation is justified as the 'gov incentives' have dried up, but the overall trend for the sector is so very much intact.  But before it can see this trend, especially in the US, standards have to be created.

I have not entered yet, but I am watching the stock and the progress of the smart grid standards closely.

Here are a few notes:

1. management is projecting more growth between 2012-2015. (By the end of 2011 we should greater clarity on standardization. This will also benefit AXPW being a grid storage play.)

2. Daily chart indicates current levels are interesting for an initial entry.

3. longer-term charts, along with current PE valuations, indicate a potential bottom support at the mid 40s.

I will look to enter around 50. (Hopefully it can break 50, and I can get around 49 or so.)

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