Cheap as Dirt, Even for Solar
Nothing has been more fun to game in the markets over the past two years than the solar stocks. Because of the wealth of specious and outlandishly emotional inputs that that have gone into their pricing, these stocks never before appealed to me as long-term investments. But, specifically because they've had such a bad run lately, I may stop making fun of these shares as investment grade fairly soon.
First Solar (FSLR) has always been the solar benchmark and a tremendous trading vehicle. For most of the past two years, it was one of the great momentum stocks to play, even if you knew nothing about renewable energy. As the Obama administration took office in 2009, it was one of the great darling stocks of the greenies and attracted what I like to call "moralist money" that continued to prop both this name and other solar issues to unjustifiable multiples. Combine that "happy money" with legitimate but unsustainable European (mostly German) subsidies -- and Chinese loan support that also helped keep shares rich and attracting speculative traders -- and you've got yourself some fast-moving prices....441 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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