David White

Wall Street Breakfast: Must-Know News

Reuters" Mexican President Calderon announced that Mexico will suspend non-essential work and services, including some government ministries and private businesses, for five days starting on Friday, May 1. "

They're shutting down all business for 5 days just to try to slow the progress of this disease. If that is not negative economic impact I don't know what is. This is just a first step.

It will likley begin to spread rapidly in the US soon. Anyone who is not taking this disease seriously at this point is being foolish.

Will Yahoo Settle? Fast Money Recap (5/28/08)

Apparently a finance firm Kaufman Bros., with no previous experience in the solar arena, published ratings on 6 stocks in this arena. Notably they gave SPWR (P/E approx. 300 on Yahoo) a buy and SFLR a hold (P/E approx. 100 on Yahoo). Seems questionable to me since FSLR has historically outstripped SPWR in growth and consistently good earnings reports. FSLR may be getting more competition, but so is everyone else. If SPWR is a buy, I would think you would have to consider FSLR a buy also. Yahoo states its actual analyst average rating is 2.2 (a buy).

Will Yahoo Settle? Fast Money Recap (5/28/08)

STP did not go down on just the Germany news. It had another reason. It just issued $500,000,000 worth of convertible notes. This effectively dilutes the stock value. Natuarally it would go down (at least temporarily).

Will Yahoo Settle? Fast Money Recap (5/28/08)

Currently the average target price for FSLR is $330.

Will Yahoo Settle? Fast Money Recap (5/28/08)

Some solar stocks have been downgraded recently due to increased competition. Merrill Lynch kept FSLR at buy even though it is exposed to the "possible" legislative cut in Germany's solar subsidy. This also would bode well for a bounce from this level. Perhaps all this bad news has this solar stock (and others) down in the dumps for the moment. Sentiment can change quickly. Germany is now worried about the cost of their solar subisdy. However, when they balance it against the eventual cost of not having it (i.e. buying oil or uranium instead as they rise in future years), Germany may decide the solar subsidy costs are going to be cheap by comparison. This is without even taking into account the Kyoto concerns, which solar also addresses.

Will Yahoo Settle? Fast Money Recap (5/28/08)

I probably should have mentioned that the recent run up in solar was largely due to a great earnings being reported by virtually all of the solar companies. Since this run up has now virtually disappeared, one might think there would be a bounce back up. The great earnings were after all very real.

Will Yahoo Settle? Fast Money Recap (5/28/08)

Also I looked at the TAN (a fairly broad solar ETF). It looks like solar is reaching its support level. Solar had a big run up recently. It has generally been retreating since. The retreat may be nearing its end???? This may depend on where the price of oil goes. However, the TAN support level is overall encouraging for a near term move up in FSLR.

Will Yahoo Settle? Fast Money Recap (5/28/08)

It does look like FSLR is puting in a short term base this morning. Technically it looks like it could move higher soon as this base is very near the bottom Bollinger band. This might be a good buy point.