Daqo New Energy (DQ) Raises Q4 Guidance, Announces Expansion

Daqo New Energy (DQ) will have another good day today.  Yesterday, the company was initiated at Buy over at Roth capital with a $15 price target and this morning the company is raising Q4 guidance and announcing expansion plans.  They are raising their Q4 shipment guidance from 825 – 850MT to 930 – 950MT and revenue guidance from $65 – $69 million to $75 – $76 million.  The company also announced plans to build its Phase 2 polysilicon production facility which is expected to begin production in Q3 2012.

==> Click Here For Your FREE Daily DQ Analysis

Technically, I believe shares of DQ have bottomed out around the $10 level given yesterday’s high volume surge and this morning’s gap up.  The stock is likely to form some kind of cup with handle base, with a proper entry point coming on a break out above a handle formation.  I personally added a small position yesterday morning and will be looking to add to my position on a handle breakout move. 

Leave a Reply

Your email address will not be published. Required fields are marked *