Personally, I like Evergreen Solar (ESLR) and LDK. Both have their risks, but risk-reward is favorable.
I agree that First Solar (FSLR) is priced for perfection and ready to fall. Margins are extremely impressive for them, but there aren't too many companies that can maintain 50%+ margins for the rest of their lives; or even for 3+ years --- everyone buying in is assuming that First Solar will do just that.
They are not the "Microsoft of Solar" because solar companies function more similiarly to commodity producers than software companies. First Solar does not have the moat that Microsoft does. If anything, First Solar is probably a better short target than a long target.
Solar Stocks Look Ripe [View article]
Personally, I like Evergreen Solar (ESLR) and LDK. Both have their risks, but risk-reward is favorable.
I agree that First Solar (FSLR) is priced for perfection and ready to fall. Margins are extremely impressive for them, but there aren't too many companies that can maintain 50%+ margins for the rest of their lives; or even for 3+ years --- everyone buying in is assuming that First Solar will do just that.
They are not the "Microsoft of Solar" because solar companies function more similiarly to commodity producers than software companies. First Solar does not have the moat that Microsoft does. If anything, First Solar is probably a better short target than a long target.