API, PLUG, UQM: Time to Shop in Current Correction

Advanced Photonix Inc (AMEX: API), Plug Power Inc (NASDAQ: PLUG) and UQM Technologies Inc (AMEX: UQM) are some of the stocks which offer growth opportunities and thus should be accumulated when the gloom is on boom. While damage to stock prices is obvious fallout of a global selloff, every adversity (read correction and panic) brings in some opportunities also with itself. Good businesses become available at reduced prices and generally speaking, corrections should be used to buy the stocks one always wanted to.  

Advanced Photonix Inc (AMEX: API) is a stock that has taken excessive beating in the last few trading sessions. The stock has seen a correction of over 10 per cent in the last week alone after announcing its fourth quarter results. It is a classic case of market reading too much into the numbers and missing the big picture. This manufacturer of photodetectors and optical receivers reported a 52 per cent jump in the top line while profits stood at $221,000 in the latest quarter. The profit figures aren’t strictly comparable as the company posted a loss a year ago. However, the market overreacted to the sequential decline in net profit from $259,000 in the third quarter. Trading at $1.16, the stock is clearly in an oversold zone and some bounce back can be expected as soon as the market recovers.  

Plug Power Inc (NASDAQ: PLUG) provides fuel cell based systems for material handling applications and stationary power markets. This is a development stage company and the stock at $2.1 is just 9 per cent away from its year low. It appears to be oversold and undervalued considering the regular stream of contracts that have come along in the recent times.

Almost on the same lines, but with a sizeable business to boast of is Colorado based UQM Technologies Inc (AMEX: UQM) which makes electronic controllers for the automotive, aerospace, military and industrial markets. The stock has lost 12 per cent in the last week and there couldn’t have been better time to start accumulating this business. Analysts at Wunderlich Securities believe the stock is headed to $4 and I buy the growth story of this company. Investors who booked profits last week at $2.3 may again look to enter at $2.1 which is just 11 per cent above the year low.