Apr 20 2009
First Solar: Expensive but Worth It
A financial writer recently poked fun at another financial writer about “the only good advice he had was to invest in solar energy!” as though this were bad advice.
There is a myriad of excellent buys, and a good solar energy company is a good idea, especially if the government stimulous package brings in more revenue for that company. Consider First Solar (FSLR) for example. This sun grabbing maker is rebounding nicely from the market downturn, and selling for $143.00 right now, down from the mid to high $200 zone. The insiders are buying like crazy, and the company has a nice balance sheet.
What’s not to like? It’s expensive. With a 33 P/E, the company looks ridiculous considering how many big chips you can pick up for a P/E of under 20. So what is a person supposed to do?
If you want to purchase something green, consider First Solar, especially since the insiders are buying so aggressively. Make it a long term growth stock in your portfolio. The best bet is to buy on a market correction or dollar cost average a series of buys. It’s fairly likely that if solar advances, this company will benefit.
