First Solar Flirts With All-Time Lows… A Busted IPO Case (FSLR)

When First Solar came public, it was on the heels of the IPO from SunPower Corporation (NASDAQ: SPWR) coming public a year or so earlier and after it has risen 50% before First Solar came public.

Now there is a management gap at First Solar, government spending cuts are biting it you know where, margins are cratering in the solar sector, China is dumping panels often under the real cost of production, and now natural gas for plants is so cheap that they are almost giving it away.

The problem with First Solar now is that its shares fall on a day when the markets are up or down.  The stock also has fallen whether oil is rising or falling.  And the chart is about as attractive as a hat full of chopped up fingers.

With shares down 2.4% at $20.45 the market capitalization rate is a mere $1.77 billion according to Yahoo! Finance.  In the past it was always a situation where “OK, maybe this is finally the end.”  Now it is just, “Wow, again?” each day by investors.  Shares have been public for far too long to consider this situation a broken IPO.  Still, if this is not sad what is?

JON C. OGG