This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

At Long Last, Solar Sector Offers Value

Stocks in this article: FSLR JASO LDK STP

Updated with closing stock prices

Value is always the key to finding good investments. For an old oil guy like me, the solar stocks have never represented good value and I have never recommended them. But now, the tide may be changing.

Solar stocks have been "darling" investments. They represent the promise of new technology that most people feel will be an inevitable part of our energy future. They are "green" stocks and inspire good feelings in those who own them, as if the very act of investment somehow helps the environment. And with oil continuing to see very high prices, the rush into alternative energy companies has seemed liked the "smart" investment to make. For all these reasons, solar stocks have always seemed to me to be overvalued, running far ahead of what the companies actually could deliver in growth and earnings.

Let's look at First Solar (FSLR), which is far and away the solar company with the largest market-cap and which has always been the benchmark for measuring the sector.

FSLR Weekly (NYSE) -- First Solar Inc
FSLR Weekly Chart
Source: TradeStation

For the crystal ball readers who bet on First Solar as the big winner and lone survivor of the super-hot solar IPO deluge of 2006, collect all the marbles and kewpie dolls -- you've seen FSLR go from a $20 dollar stock to trade for more than $300 in 2008. For the rest of us who missed this 15-bagger, First Solar has continued to disappoint as an investment for the last year and a half. It's been unable to deliver on the promise of solar panels on every house that would have legitimized the overhyped multiples it carried.

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs