Roth Capital Suspends Coverage of A-Power Energy (APWR)

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03:18:14 pm on June 16, 2009

If missing earnings estimates by a huge margin weren’t bad enough, APWR got hit hard again after word spread that Roth Capital had suspended its coverage of A-Power Energy (APWR) due to lack of transparency.  Here’s the analyst note courtesy of Notable Calls.

“We believe the company’s lack of transparency has created inherent limitations to our ability to gain adequate insight into the underlying fundamentals to confidently model and value the business. We believe this transparency has deteriorated further, impacting our ability to publish an investment recommendation. We will consider resuming coverage when transparency improves and underlying metrics become more visible.Prior to suspending coverage, we had a HOLD rating and a $5 price target. Effective with suspending coverage, prior estimates, rating, and price target should not be relied upon…'”

The stock plunged with heavy volume in a heart beat, sending the stock right to the 50 day moving average just below 10 where it found support.  However, given the fact it closed in the lower half of the trading range today, there is still significant downward momentum.  It will be interesting to see if it can hold that 50 day moving average in the coming days.

For those with a bit of an appetite for risk, this sell off may offer a great opportunity to scale into a  long term position.  I know I’ll be looking for a spot in the coming days.  

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