Friday, August 25, 2023

First Solar, The Poster Child For Solar Subsidies Has Had An Awful Month (FSLR)

As the Wall Street Journal noted on July 31:

The U.S. Clean-Energy Company That Hit the Subsidies Jackpot

Of all the beneficiaries of the U.S.’s green-energy push, few have hit the jackpot like First Solar. The Arizona-based solar-panel manufacturer expects to receive as much as $710 million this year—nearly 90% of forecast operating profit—from subsidies the U.S. government rolled out a year ago to encourage domestic renewables production. One analyst estimates the incentives could be worth more than $10 billion for the company over the next decade. . .

The company’s shares have more than doubled to $208.40 in Friday trade since the beginning of 2022, despite a string of earnings disappointments during that period....

The stock, down another $6.16 (-3.41%) closed yesterday at $174.42 with the only recent news being August 16's "First Solar Will Probably Lose Some ESG Points With The Forced Labor Revelations (FSLR)".

Here's the price action over the last year via BigCharts:

As can be seen, the stock traded at $224.50 on July 28.

After the $50.08 (22.3%) decline the stock might be offering itself up for a trade to the long side but not today. In pre-market action the stock can only muster a 33 cent uptick on a day when all three major index futures are up going into the open.

FSLR will be reporting earnings in October so somewhere in the Aug. 28 - Oct. 26 time frame there should be an opportunity but we have no interest on JPow speech day and/or until the stock can find a bottom.