StockPM Suggests First Solar (FSLR) does not have the rite fundamentals
Jim Crammer, recommended First Solar Symbol (FSLR) on its Thursday night show. Analysts at stockpm would suggest that this stock is buy for short term, but will not outperform the market in the long run. The reason for such a recommendation is two fold.
First, since Crammer has recommended this stock, you will see its price will spike in next few weeks. The stock is already trading at its 52 week high (283.54-54.20). This spike in price is entirely driven by speculation and not based on fundamentals. According to the technical analysis, the stock has seen a jump due to news in the market that the next big green generation is Solar and Wind. But, our analysis of green investing states that jump in green stock is more like the dot com bubble and people need to be realistic about green growth.
We at stockpm will publish an article tomorrow and explain the fundamentals of the growth in renewable energy. ( Please, come back tomorrow for some fundamentals). We suggest a buy for short term to the speculators in the market. However, suggest a suggest a sell/hold in the long run.
The FSLR stock will continue to ride on the positive news in the markets from the various green investors. Also, the news in the power industry from various states, requires most utilities to meet various carbon cap requirements in coming years. This news will help this stock to gain momentum. The reality of investing in power industry suggests other wise. For any power company to make money, it take at least 1 to 2 years to setup a plant. Not only do people need money to buy Solar panels, they also need money to buy land and also to build transmission lines. The utilities also need permissions from various governing bodies to set up a plant. which delays the commissioning of various plants.
All these reasons suggest that any company investing in generation of electricity should see a slow growth and will have to be really patient to see a return on there investment. This all the more suggests that, the growth in FSLR stock is more speculative than based on it strong financial fundamentals.
First, since Crammer has recommended this stock, you will see its price will spike in next few weeks. The stock is already trading at its 52 week high (283.54-54.20). This spike in price is entirely driven by speculation and not based on fundamentals. According to the technical analysis, the stock has seen a jump due to news in the market that the next big green generation is Solar and Wind. But, our analysis of green investing states that jump in green stock is more like the dot com bubble and people need to be realistic about green growth.
We at stockpm will publish an article tomorrow and explain the fundamentals of the growth in renewable energy. ( Please, come back tomorrow for some fundamentals). We suggest a buy for short term to the speculators in the market. However, suggest a suggest a sell/hold in the long run.
The FSLR stock will continue to ride on the positive news in the markets from the various green investors. Also, the news in the power industry from various states, requires most utilities to meet various carbon cap requirements in coming years. This news will help this stock to gain momentum. The reality of investing in power industry suggests other wise. For any power company to make money, it take at least 1 to 2 years to setup a plant. Not only do people need money to buy Solar panels, they also need money to buy land and also to build transmission lines. The utilities also need permissions from various governing bodies to set up a plant. which delays the commissioning of various plants.
All these reasons suggest that any company investing in generation of electricity should see a slow growth and will have to be really patient to see a return on there investment. This all the more suggests that, the growth in FSLR stock is more speculative than based on it strong financial fundamentals.
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