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Chasing the Sun (FSLR)

Written by Barry Dumas | 08-Oct-2020 07:45:00

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).

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.

New to investing

and want to know more about latest stock additions?

Read:  New Instruments on EasyEquities September 2020

 

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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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

 
Any opinions, news, research, reports, analyses, prices, or other information contained within this research is provided by Barry Dumas, Market Analyst at GT247 (Pty) Ltd t/a GT247.com (“GT247.com”) as general market commentary, and does not constitute investment advice for the purposes of the Financial Advisory and Intermediary Services Act, 2002. First World Trader (Pty) Ltd t/a EasyEquities (“EasyEquities”) and GT247.com do not warrant the correctness, accuracy, timeliness, reliability or completeness of any information received from third party data providers. You must rely solely upon your own judgment in all aspects of your investment and/or trading decisions and all investments and/or trades are made at your own risk. EasyEquities and GT247.com (including any of their employees) will not accept any liability for any direct or indirect loss or damage, including without limitation, any loss of profit, which may arise directly or indirectly from use of or reliance on the market commentary. The content contained within is subject to change at any time without notice.The value of a financial product can go down, as well as up, due to changes in the value of the underlying investments. An investor may not recoup the full amount invested. Past performance is not necessarily an indication of future performance. These products are not guaranteed. Examples and/or graphs are for illustrative purposes only.