Don't bet against a Goldman 'Conviction' buy (or sell) for a few weeks after the call.
Today marks three weeks since they went Conviction Buy on FSLR.
On June 26, 2008 GS put Trina Solar on their Conviction Sell list with the stock a bit over $38.
On September 10, 2008 they removed the stock from the conviction list but maintained the sell, stock at $24.49.
On 10/20/2008 GS went from Sell to Neutral on TSL, stock at $14.90.
Don't bet against the conviction.
Here's Schaeffer's Research:
Option players have taken a shine to First Solar, Inc. (FSLR) today, with some 31,000 contracts changing hands -- nearly triple the alternative energy issue's expected daily option volume. Calls have been especially popular, with some 19,000 of these bullishly oriented options crossing the tape.
FSLR's February 160 call has been particularly hot today, with nearly 4,300 contracts exchanged -- the majority of which traded at the ask price, indicating they were likely purchased. With FSLR hovering around $165, these 160-strike calls are comfortably in the money.
Call players may be taking advantage of FSLR's rally -- just today, the shares vaulted to a fresh 52-week peak of $167.40, roughly 10 points above their Thursday close at $157.47. In fact, since the beginning of January, FSLR has been rallying steadily along the support of its 10-week moving average, racking up gains of 21% year-to-date
It seems that the bears are beginning to capitulate to the energy issue's technical strength, as short interest fell by 8.1% during the most recent reporting period. Despite this decrease, though, short interest still accounts for a hefty 27.5% of FSLR's total available float -- over seven days' worth of pent-up buying pressure, at the stock's average pace of trading. As the shorts continue to abandon their positions, the resulting buying pressure could be a boon for FSLR.
