cynnatalie2000

Bargain of the Week: First Solar

FSLR sells an inferior product, but at a lower price. Thus, the ample and growing supply of polysilicon is deadly for FSLR. It must always undercut the sellers of polysilicon based solar panels.

The shortage of polysilicon lasted for a while and led the spot price to ridiculous levels. Polysilicon may go down to $35 per kilogram and that will require even bigger rebates by FSLR.

First Solar's Great News...No, Terrible News...Wait...

A 31% gross margin will mean a profit of about 40 cents per watt or gross profit of 500 million dollars.

That would result in a net profit after tax of about 2 dollars per share per year.

FSLR will be a buy after analysts drop projected earnings to two dollars per share. Until then, the expectations are vastly different from the projected gross margin.