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Sell This Solar Stock

Tuesday, 16 Nov 2010 | 6:54 PM ET
Off the Charts
Could solar be the light at the end of the tunnel?

There was a time when Cramer would have recommended First Solar above any of its cohorts, even though he didn’t much like the group. But not anymore.

The “Mad Money” host didn’t trust an industry that relied so heavily upon government subsidies to survive, especially in an era of increasing budget cuts. First Solar was different, though.

Instead of using silicon for its solar modules, it avoided the ever more expensive commodity entirely, building a product based on thin film semiconductors instead. As a result of that cost savings, the company was more competitive against cheap fossil fuels like coal than any of its solar rivals.

Not to mention, FSLR offered the fast earnings growth that Wall Street money managers love, which is why the stock ran to $290 back in the summer of 2008 when oil prices were peaking near $150.

But though crude is ramping again, Cramer just can’t recommend First Solar. The charts, as interpreted by top technical analyst Ken Shreve, say the big-money guys that once loved the stock are cashing out, and that means retail investors should, too. And because Shreve predicted a similar stall-out in Intuitive Surgical back in August, Cramer’s willing to bank on him again.

What exactly are the charts saying about First Solar? Watch the video to see the full report.

Call Cramer: 1-800-743-CNBC

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