LDK, Trina Solar ( TSL), and Suntech Power ( STP) quickly fell back to the levels previous to First Solar's announcement. First Solar is what I consider the least ugly in an exceedingly ugly space. European subsidies are difficult to find, oil and natural gas production continues climbing and the political will to subsidize solar in the United States is falling. First Solar is making the right moves, but don't think the current price represents a favorable risk to reward.
First Solar realized some genuine buying at the time of the announcement. However, the company also had over 30% of its shares shorted. The price spike was a catalyst for a unusually tight short squeeze on short sellers. If interested, look to buy First Solar under $30 a share. Buyers above $30 are not properly pricing in the volatility and discounting the impact of natural gas on electric production costs. At the time of publication the author had no position in any of the stocks mentioned.Follow @RobertWeinsteinThis article was written by an independent contributor, separate from TheStreet's regular news coverage.