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First Solar: The Company Will Survive And In Time, Thrive

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Modern communication technology has allowed investors access to an unprecedented level of information around the clock. Yet, tools like CNBC and Bloomberg have also, to a degree, caused investors to lose sight of the big picture. A focus on tracking every stock tick by tick has caused some investors to lose sight of their long-term goals. A stock may drop for weeks, or even months, but be higher years from now. Sectors fall in and out of favor, as do individual stocks. The solar sector is currently one that has been left for dead by investors. And so has the leader in this sector, First Solar ( FSLR ). This stock has been one of the worst performers of 2011, falling almost 76% since the start of 2011, as the S&P 500 ( SPY ) fell just over 1%.

We previously recommended First Solar on October 4, and freely admit that our call was poorly timed. The CEO has been ousted, guidance has been lowered, and volatile markets have taken their toll. But we remain bullish on FSLR for the long term, adding to our position as the stock has declined. We think that investors are throwing First Solar out with the rest of the solar sector, something that we think is a mistake. First Solar has been in freefall in 2011, along with all of its peers in the solar sector. Yet, over the last 5 years, First Solar is the only solar stock to have risen, and it has outperformed the S&P 500, a testament to its long-term strength and resilience.

Source: Seeking Alpha