TickerHound

KenLong answered one month ago …

7/3 Mondays action will be very telling. So far it seems to be entering a flat range. This could be just a change of trajectory after strong momentum. It could also be something much worse. Such as a head and shoulders at the neckline. Right shoulder in June, head in May, left shoulder in April. The left neck is a little higher than the right neck, but todays low stoped right on the low from June and very close to the highs from Feb and Mar. This is do or die time, the lines been drawn. Todays candle looks like a nice hammer reversal with a slightly large head. But this market is not to be trusted, wait for confirmation. Theres no way to really tell untill the line is broken or holds as support.

Zacks Rank 1, Recomandation BUY, Target Price 333.00

Bull of the Day for Jun 26, 2008 FSLR
First Solar, Inc. (FSLR)
The company was able to register consistent improvement in its bottom line in stark contrast to its silicon cell peers.

Future Bright for First Solar (FSLR)
Posted Wed Jun 25, 10:20 am ET
by Jon Kolb

First Solar, Inc. (FSLR) relies on its proprietary thin-film semiconductor technology to design, manufacture and sell solar electric power modules. Hence, the firm managed to avert a silicon shortage, which ravaged the bottom lines of other solar peers. As a result, the company was able to register consistent improvement in its bottom line. So, we maintain our Buy recommendation on FSLR with a six-month target price of $333. Price appreciation to our near-term valuation target represents 15.6% upside potential.

The company plans to expand its manufacturing capacity to 23 production lines and an annual global manufacturing capacity of 1,012MW by the end of 2009. FSLR expects revenue in the current fiscal to be between $900 million and $950 million. The long-term supply contracts in the aggregate allow for approximately Euro 4.5 billion in sales from 2008 to 2012 for the sale of a total of 3.2GW of solar modules. However, to a great extent, FSLR’s success is dependent upon the ongoing proliferation and commercialization of the photovoltaic marketplace.

We continue to like the FSRL story and the growth potential for the solar industry. We support the management’s long-term focus on capacity build-out and technological enhancements. Since the traditional energy prices are currently at historically high levels, solar stocks as an alternative energy source, appear increasingly attractive.

As with most alternative energy companies, FSLR is currently valued, in part, on more optimistic future expectations, and if the company lives up to the expectation and the solar power industry evolves globally as expected, FSLR may prove to be a great long-term investment.

Read the full analyst report on FSLR

Bull of the Day is a long term recomendation, not short term. Zacks Rank is a short term indicator based on earnings revisions. You can download their full equity report at Zacks.com, just type FSLR into the quote bar at the top.

FSLR has been a great momentum stock for a while now. I doubt it can continue that kind of momentum from this position, but I've been wrong many times. Untill I see some strong demand, breakouts and higher highs, this is just a fish flopping on the dock. Better to trade the range and not expect too much. The range is a nice 10-20% anyway. 10% from here, 20% from this mornings reversal.