Tuesday, February 24, 2009

First Solar Slides; Calls Short Term Outlook “Difficult” (FSLR)

From Tech Trader Daily:

In a post-earnings conference call with analysts First Solar (FSLR) provided plenty of evidence of the current struggles in the solar industry, and provided new information on some aggressive new measures the company plans to take to address weakening demand and falling prices.

CEO Michael Ahearn told investors on the call that that the outlook for the mid-term, which he defined as three to five years out, “has never been better.” But he also said that the short-term outlook for the solar industry “has never looked more difficult.”

Ahearn said the solar industry “like most everyone else” has been impacted by the global financial crisis. He noted that bank lending “continues to be slow” in almost all markets, although “availability has marginally improved in Q1.” He also said credit remains more expensive than previous levels.

Ahearn also pointed out that equity financing for solar projects “has become less predictable and in some cases more expensive than before the crisis erupted,” and that “larger and more sophisticated investors” are taking an opportunities approach to maximizing returns, “causing them to compare solar project returns to other alternatives that provide higher yields or better liquidity.”>>>MORE
Something seems odd about this frankness. We didn't see it when the stock was over $300.
I wouldn't be surprised to see insider buying should FSLR trade under a hundo.