First Solar: 3 Reasons To Be Contrarian

Dilantha De Silva
12.33K Followers
(10min)

Summary

  • First Solar stock tanked on June 17 alongside leading residential solar stocks such as Sunrun and Enphase Energy.
  • A closer evaluation of First Solar's business model suggests Mr. Market is throwing the baby out with the water.
  • First Solar's unique CdTe thin-film technology provides supply chain resilience and independence from Chinese crystalline silicon, reducing tariff risk.
  • Policy risks and inventory build-up remain, but with these largely priced in, the stock is irrationally undervalued for long-term investors.

Multiracial Group Of Three Engineers Surrounded By Solar Panels

Thurtell

Last April, when stock investors were getting behind First Solar, Inc. (NASDAQ:FSLR) after the Trump administration announced eye-popping tariffs on crystalline silicon solar panels from Southeast Asia, I thought investors should curb their enthusiasm. My caution

This article was written by

12.33K Followers
Dilantha De Silva is an experienced equity analyst and investment researcher with over 10 years in the investment industry. He writes insightful articles for Seeking Alpha, GuruFocus, TipRanks, and ValueWalk, with a significant following on Seeking Alpha. Dilantha’s expertise spans across various sectors, with a particular focus on small-cap stocks that are overlooked by Wall Street analysts. He is a CFA Level III candidate and an Associate Member of the Chartered Institute for Securities and Investment (CISI). Dilantha has been featured on CNBC and Bloomberg, and his work has been prominently showcased on Nasdaq, Yahoo Finance, and other leading investment platforms. When not analyzing stocks and writing, Dilantha is involved in private equity transactions, including acquiring and managing businesses.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in FSLR over the next 72 hours. 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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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