Tuesday, February 22, 2011

Forbes Does Some Hatin' on First Solar, Sets up an Earnings Short Squeeze for Thursday (FSLR)

The stock looks to close down $4.12 or so at $164.10 which is over $11 lower than the 19 month high set last week.
This is the first time in ages that I can remember the stock trading down before an earnings release (Thursday) and sets up for a blow-out report and a reiteration or preferably a new price target, from Goldman.
Here's Forbes:
First Solar Stock Flies Too High For Firm’s Value
First Solar is engaged in the manufacturing and sale of solar modules with an advanced thin film semiconductor technology.
Blah, blah, blah. you can tell from the first paragraph that the authors are not writing for the cognescenti. They go on to say:
The firm also designs, constructs and sells photovoltaic solar power systems to customers around the world. First Solar competes with other solar industry players like SunPower , Suntech Power and Yingli Green Energy Holding Com.
We recently launched coverage on First Solar with a $153 price estimate for the company’s stock. Our number stands roughly 10% below market price..,.continues 
Here's an alternate opinion:

3 Earnings Short-Squeeze Stocks
 Buying the right stocks that are heavily shorted into their earnings reports continues to be a profitable venture this earnings season. Last week, two of three earnings plays I highlighted produced some big gains for the bulls. Both Aruba Networks(ARUN_) and SunPower(SPWRA_) traded significantly higher and experienced notable short squeezes following their earnings reports. Both companies delivered what the bulls were looking for, rewarding any trader who took a long position in these names prior to their reports....MORE
FSLR is no longer the most shorted (% of float) stock in the S&P 500 but is still a big fav of da bears.

The March $170 calls at $6.50 offered will have a lot of their time premium stripped out of them should they trade through the $170 strike but they look like the best risk/reward among the options--out either way on Friday.

The good folks at Forbes may have just given us a gift. We'll know more after the close on Thursday.