Monday, January 24, 2011

First Solar Upgraded by Goldman Sachs, Resulting in a Nice Jump!

Today, First Solar got upgraded by Goldman Sachs.  If you've been keeping up with my posts on First Solar, you'll know that my feeling towards the stock has been essentially reiterated by Goldman.  I quote, "First Solar is our top pick based on one of our key themes for solar stocks in 2011: owning long-term structural winners that are low-cost, well-funded producers with visible demand and credible capacity growth."

Since Goldman Sachs is such a powerhouse in the financial world, this resulted in a nice 6% jump in the stock.  If you look at the chart below, you can see that the stock has broken the $152 resistance, and with conviction (large volume)!  The upcoming weeks will be crucial in seeing how well the stock holds above the resistance level.  If you start to see the $152 mark turn into a support (i.e. when the stock drops, it swiftly bounces back up from this level), then it is likely the stock will go significantly higher.  Of course, this is based on technical analysis...but the fundamentals are there to justify the nice jump upwards.



Figure 1: First Solar (FSLR) 1-Year Chart

I have to confess that I haven't updated my Rule #1 spreadsheet for First Solar lately, but from keeping abreast with earnings, etc., I'm pretty sure it's still below sticker price...probably way below.  Maybe you can run an analysis and see if you should own this "wonderful" company!