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Chasing the Sun (FSLR)

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First Solar Inc (FSLR)

Chasing the Sun is the name of the game for this established player in the solar industry which has seen investors “Going Green” with envy.

The company is First Solar Inc (FSLR), one of the world’s largest producers of PV cells and as the worlds focus shifts back slowly to renewable energy, this small-cap stock and new stock addition to the EasyEquities platform caught my attention.

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Fundamentals

The solar panel manufacturer released its second-quarter earnings in August 2020 and shined bright, beating analyst's expectation with little to no impact from the COVID-19 pandemic. The company's revenue increased 9.8% year-over-year with an Earnings Per Share beat by $0.16.

First Solar Inc (FSLR) share overview:

  • Sector: Information Technology.
  • Market Cap of $7.78 billion.
  • Dividend Yield: N/A
  • Price/Earnings (LTM): 78.5x
  • Price/Book: 1.5x
  • Next Earnings: 24th of October 2020.
  • 52 Week Range low of $30.20 and $80.00 per share high.

We remain pleased with our operational performance with strong metrics across the board,” and “Our COVID-19 response continues to center on balancing our top priority of safety with meeting our commitments to our customers. This approach, together with our associates’ dedication, and the strengths of our differentiated business model, enabled us to deliver solid financial results for the second quarter.” - Mark Widmar (CEO of First Solar).

Outlook – The increase in revenue was mainly due to First Solar selling off non-core assets in a bid to transform and focus on operations the company believes will be profitable in the future.

Investors should also note that there might be a telluride supply chain delay if the U.S and China trade negotiations go sour. Telluride is one of the main ingredients in making solar panels, and China supplies a large percentage of telluride to the world.

Chart Life

The price action on First Solar Inc (FSLR) has been in a steady uptrend, which saw a retracement over September to retest the $60.44 breakout zone. The price action found support at $60.44 and pushed higher for another leg higher. The 50-day simple moving average of the price (blue line) is also supporting the mover higher back to the $80.00 per share level.

Short interest on outstanding shares on First Solar Inc (FSLR) is around 8.9%, while the median analyst expectations are $73.57 per share (red line).

FirstSolarChart

Portfolio particulars

  • Portfolio Hold (Current)*
  • Portfolio Buy opportunity: above $60.38 per share**
  • WhatsTheBeef long term target price: $98.47 per share.

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Informed decisions

With its class-action lawsuit behind them and streamlining its business for more profitability, First Solar should be on your radar. Especially with the pending U.S Presidential elections around the corner which could also see solar become a hot commodity if Biden takes the win.

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Read:  New Instruments on EasyEquities September 2020

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Sources – EasyResearch, First Solar Inc, SeekingAlpha, Koyfin, Wikipedia.

Take note: stock data was taken on 07/10/2020 before the U.S market open. 

*Portfolio Hold (Current) refers to investors who already hold the stock within their portfolio before the U.S. market open.

**Portfolio Buy opportunity refers to Technical level crossed which might imply that the markets behavior would support the outlook and Close above refers to a share price close above a Technical Resistance level.

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@BEEF_FINMARKETS

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Barry is a market analyst with GT247, with a wealth of experience in the investment markets. Now in his tenth year in the markets, Barry "The Beef" Dumas brings a combination of technical analysis and fundamental insights to the table

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