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First Solar (FSLR) -2.1% premarket as Pacific Crest downgrades to Sell and Cowen is cautious...

First Solar (FSLR) -2.1% premarket as Pacific Crest downgrades to Sell and Cowen is cautious ahead of earnings. The company finds itself in a Catch-22, says Cowen - without new business capacity will need to be shut, but any new bookings are likely to be low-margin. 
Comments (2)
  • jerryf01
    , contributor
    Comments (45) | Send Message
     
    FSLR is one of the best bets on the radar, Just about everyone who post has an angle, as far as I know Pacific Crest is short FSLR , Cowen has a point, but it will all come out in the wash.
    Tell me a stock that has everything all lined up with no bumps in the road. I think there may be some BS going on just ahead of earnings.
    22 Feb 2013, 08:50 AM Reply Like
  • Matt Hylland
    , contributor
    Comments (45) | Send Message
     
    Sooner or later I think this could work out. I'm not crazy about it in mid-upper 30s, but it doesn't seem terrible here either.

     

    Using the lowest estimates for the year:

     

    EPS of 4.30 gives it a PE under 10.
    Over 8$ in cash per share.
    Current ratio around 2.5
    Below "book", not sure how much I trust that book value though...I don't know enough about the industry and equipment.

     

    All that with,
    Nearly 40% of shares sold short, almost 5x short to cover ratio.
    We know solar demand is picking up, will FSLR get it? I don't know.

     

    Might be a wild ride...but sooner or later it might be worth it to jump on
    22 Feb 2013, 09:43 AM Reply Like
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