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Somsanith Donesing's  Instablog

Somsanith Donesing
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I'm an independent investor and has been trading stocks for the past 10 years. I also like to write and express my opinion. Hopefully people will find my articles enjoyable and informative.
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  • Who Knows FSLR Better Than Its CEO

    Many investors are still very pessimistic about the solar sector and many are still in short position despite the big gain on Tuesday, April 4/9/13. Prices surge over 44% after First Solar's CEO came out with a positive guidance on 2013 through 2015. Many wrote unfavorable articles about FSLR and the solar sector in general, gave indisputable reasons why this sector wouldn't survive and would be 90% bankrupt in the near future. I assume these same investors are tightening their fists and grinding their teeth when they see FSLR's ticker turned green on CNBC.

    Who would know about FSLR's business better than it's CEO, Mr. James Hughes. On Tuesday 4/9/13, Mr. James Hughes gave a strong outlook on his company's business and earnings all the way to 2015. Mr. James Hughes stated "I believe in my company, I believe in the industry and I believe that the energy world is just beginning to understand the capabilities of photovoltaic products."

    In recent months FSLR made some acquisitions, and that alone indicates that the company is growing with a healthy balance sheet. FSLR is expanding its business globally in Chile, Australia, India, China, South Africa, Saudi Arabia, United Arab Emirates and other parts of the world. FSLR is working with these countries and to help build solar plants to help them be less dependent on power generating fossil fuels. And at the same time, the solar plants will help them create cleaner air for their country and the world.

    FSLR is due out with its quarterly earnings on Monday, April 29/13. I believe that if this stock receives any more good news, FSLR will give the short side the squeeze of its life time. And that would make the bullish investors laugh out loud to see the pessimistic side run for cover.

    Disclosure: I am long FSLR. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

    Apr 21 4:32 AM | Link | Comment!
  • FSLR Now And Then.

    FSLR was trading at its peak price of $300 in 2008. Today FSLR is trading merely at $38. What had happened between then and now? Five year ago, many investors jumped on this sector and pushed up the solar sector to its highest. They were betting on solar companies to be the most viable energy source in order to meet the demand for energy in the United States and the world. There were many solar companies popping up trying to get in on the action. And that's when they saw inventories piling up and the demand for the solar was not as strong as expected. So the solar sector began to see their stock prices plummet fast.

    FSLR in 2008 was at its peak and trading at PE ratios of around 250. Today it's trading at $38 with PE ratios at 11. For 2013, FSLR forecast their net sales to be around 3.8- 4 billion compared to 2008 net sales of 348 million. They expect current earnings of 4-4.5 per share compared to 1.20 earnings per share in 2008. They have .8- 1 billion in cash compared to 580 million in 2008. FSLR survived the tough times through their many acquisitions and renovations while other smaller companies have gone bankrupt.

    If you look at FSLR's business then and now, FSLR is actually a stronger company than they were in 2008. Because of its growth and having over billions in cash, FSLR should be trading higher than $38. I believe the solar sector is going to be a definite replacement for future energy growth. With less competition, their innovative leadership, and their advanced photovoltaic (PV) solar panels, FSLR stand to gain market share going forward.

    Tags: FSLR
    Apr 19 3:49 AM | Link | Comment!
  • The Dow Jones Has Eased Off..

    The Dow Jones has eased off from its all time high of 14,887. I don't know how deep this pull-back will be, but I wouldn't worry about it yet. We just have to monitor it day by day. My first support for the Dow is at 14,400 and if the Dow can pierce through it then my next support would be at 14,000. As of right now, I don't really see that we would be in a major correction.

    There are a few things that have caused the market to lose its strength. Today, the weekly jobless claims came in a little higher than anticipated and the leading indicator is weaker than its forecast. It's not a big disappointment. I think most traders will forget all this by next week and start buying again.

    Apr 19 12:49 AM | Link | Comment!
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  • FSLR, If you own FSLR and the stock went up from $27 to $37 in just a few trading sessions, would you sell or would you hold onto it?
    Apr 14, 2013
  • I'm bullish on FSLR going forward.
    Apr 14, 2013
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