For long-term plays, the preferred investment is a company with a demonstrated business model (10 years), in an established market, with an average total annual return on equity of 20% during that span.
To be sure, First Solar (NYSE: FSLR) does not fit that profile, but it's worth a review, given both macro fundamentals and the company's outlook. Note: Underscoring, this is a high-risk stock.
...Still, First Solar's technological advances and competitive advantages would not amount to much if two other critical factors were not in its favor: namely, a high oil price and public policy support. On the former, it's becoming more apparent that oil is not likely to dip below $50 per barrel any time soon. Regarding the latter, in August 2007 the U.S. Congress passed a resolution expanding renewable energy incentives. Hence, FSLR is worth the chance, if you're a high-risk investor....MORE
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Thursday, December 13, 2007