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Trade-Ideas LLC identified
) as a "roof leaker" (crossing below the 200-day simple moving average on higher than normal relative volume) candidate. In addition to specific proprietary factors, Trade-Ideas identified First Solar as such a stock due to the following factors:
- FSLR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $183.1 million.
- FSLR has traded 153,127 shares today.
- FSLR is trading at 2.54 times the normal volume for the stock at this time of day.
- FSLR crossed below its 200-day simple moving average.
'Roof Leaker' stocks are worth watching because trading stocks that begin to experience a breakdown can lead to potentially massive losses. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock may then be subject to emotional selling from investors that can continue to drive the stock lower. Regardless of the impetus behind the price and volume action, when a stock moves with weakness and volume it can indicate the start of a new, potentially dangerous, trend.
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More details on FSLR:
First Solar, Inc. provides solar energy solutions. It operates in two segments, Components and Systems. The Components segment engages in the design, manufacture, and sale of solar modules that convert sunlight into electricity. FSLR has a PE ratio of 10.7. Currently there are 2 analysts that rate First Solar a buy, 2 analysts rate it a sell, and 8 rate it a hold.
The average volume for First Solar has been 4.7 million shares per day over the past 30 days. First Solar has a market cap of $5.2 billion and is part of the technology sector and electronics industry. The stock has a beta of 2.06 and a short float of 19.7% with 2.69 days to cover. Shares are down 7.7% year-to-date as of the close of trading on Thursday.
rates First Solar as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.
Highlights from the ratings report include:
- FSLR's very impressive revenue growth greatly exceeded the industry average of 5.0%. Since the same quarter one year prior, revenues leaped by 50.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- FSLR's debt-to-equity ratio is very low at 0.05 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.29, which illustrates the ability to avoid short-term cash problems.
- FIRST SOLAR INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, FIRST SOLAR INC reported poor results of -$1.19 versus -$0.50 in the prior year. This year, the market expects an improvement in earnings ($4.38 versus -$1.19).
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. When compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, FIRST SOLAR INC's return on equity is below that of both the industry average and the S&P 500.
- The gross profit margin for FIRST SOLAR INC is currently lower than what is desirable, coming in at 33.26%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 15.41% trails that of the industry average.
- You can view the full First Solar Ratings Report.