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.