First Solar (FSLR) Sell out?

More bearish news on FSLR, but don't jump out of the boat yet:

More Bad News For First Solar (FSLR) et al: GE Sees $1B Business in 3 Years (GE, FSLR)

GE-logo(Blue-PMS7455).jpgGeneral Electric's (GE) nascent solar business now grosses only $100 million, but GE expects this to grow to $1 billion within three years.

This is a pittance compared to GE's $173 billion of revenue last year, but it would rapidly put the conglomerate in the same league as First Solar (FSLR) et al. First Solar grossed $634 million last year and is projected to generate a shade over $1 billion this year.

Like Google was specialized in the search engine niche, and Microsoft couldn't touch it, any big company competing in a niche with a smaller but already established company will probably fail. Plenty of examples in the last century, and GE isn't any different.

and some other comments:

``First Solar is the leader in this industry and I'm not going to miss this growth story like I did with Microsoft,'' Lutts said. ``Despite some short-term negatives, First Solar has a huge advantage over other producers and I view them as a long- term buy.''

First Solar could be the "Thin Film Cells Microsoft", since its the only real company with a huge step ahead in this kind of technology. And considering the cost of silicon based solar cells, I still think that thin film solar cells will invade every conceivable sunny surface in the future. Paper cheap and reliable, in the long term the Bull is unscathed.

When every news media, blog and even CEO starts publicly dumping the stock, it might be the right time not to do so.

The chart still looks bullish to me, at least until we close below Thursday's low:


I would expect a fake break-down here. More updates soon...

Labels: First Solar, FSLR, GE

posted by Ertai at 2:38 PM