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
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

What To Do After First Solar Shares Soared

Chris Lau, KAPITALL Contributor: Since reporting earnings in February, First Solar (FSLR) shares rebounded sharply in April after updating its guidance for the next few years. The shift in sentiment caught short sellers off-guard: at last check, short float was 30%. [More Analysis by Chris Lau: A Look at Solar City as Shares Soar Over 70%]

Fourth Quarter Earnings

Gross margins declined 110 basis points from the previous quarter to 27.3%. The company guided gross margins to decline in the current quarter, down to between 25% – 27%. Even though operating expenditures declined 8% from the previous quarter to $121.5 million, the company said that the market will remain turbulent for some time to come.

Investors in February interpreted the negative tone as a reason to sell shares from $35 to as low as $25 by the beginning of March 2013.

Analysts lighten up in March

Analysts began to lighten up last month. Raymond James upgraded First Solar, Trina Solar (TSL) and SunPower (SPWR) to a “market perform” rating. DNB Markets also upgraded First Solar to a “hold” rating, setting a price target of $27.

Suntech Bankruptcy

Investors grew more confident on solvent solar energy players like First Solar, after Suntech filed for bankruptcy. Although a reader astutely noted that oversupply will remain an issue despite the bankruptcy, the Suntech filing still brings hope for balance in the industry. Weaker players will be shaken from the industry, which will benefit the healthier companies like First Solar.

First Solar Guidance Positive

On April 9, 2013, First Solar said on its analyst day meeting that the company will earn $4.00 to $4.50 per share in 2013 on revenue of between $3.8 billion – $4 billion. The figures were far higher than consensus estimates. Analysts forecast revenue to be as low as $3.2 billion.

Stock quotes in this article: FSLR, LDK, SCTY, SPWR, TSL, WFR 

Select the service that is right for you!

COMPARE ALL SERVICES
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.
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 +2.54 0.14%
NASDAQ 4,095.5160 +9.2910 0.23%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

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