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Forget First Solar, Play Alt. Energy with These Names: Analyst

Friday, 17 Feb 2012 | 1:16 PM ET

First Solar landed on the Fast Money trader radar with shares popping on news a major deal had successfully navigated a stumbling block.

Specifically the company received needed permissions to build a new solar farm in California, with the deal valued at $1.3 billion.

Although that seems bullish Aaron Chew of Maxim Group tells us, when you dig down – it’s not as positive as it seems.

FSLR Gets a Pop
First Solar shares are up nearly 7% after the company received approval to build a solar firm. Aaron Chew, analyst at Maxim Group, weighs in.

He says, although demand for First Solar products may be increasing, higher demand might not be a good reason to bid the stock up.

“(Higher demand) doesn’t necessarily translate into earnings leverage," he says.

Chew reminds that margins are seriously pressured. “Major challenges still face the company. That hasn’t really changed."

Instead, Chew thinks investors would be better served to play the news with names the directly benefit from unit growth. Look at component suppliers such as STR Holdings and equipment manufacturers such as GT Advanced Technologies ,” he says.

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Trader disclosure: On Feb 16, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Weiss is long RIMM; Weiss is long HPQ; Weiss is long QCOM; Weiss is long CHRS; Weiss is long VZ; Weiss is long BRCM; Weiss is long SNDK; Weiss is long MDRX; Weiss is short AAPL puts; Weiss is long AMZN puts; Weiss is short MT; Najarian is long AAPL call spreads; Najarian is long GS call spreads; Najarian is long RVBD call spreads; Najarian is long JNPR call spreads; Najarian is long FIO call spreads; Najarian is long NBR call spreads; Najarian is long LTD call spreads; Najarian is long M call spreads; Najarian is long TJX call spreads; Najarian is long HPQ call spreads; Najarian is long RIG call spreads; Grasso is long ASTM; Grasso is long S; Grasso is long XLU; Grasso is long AVAV; Grasso is long BA; Grasso is long D; Grasso is long DIO; Grasso is long LIT; Grasso is long MHY; Grasso is long NUAN; Grasso is long MO; Grasso is long PFE; Grasso is long PRST

For Steve Grasso
Stuart Frankel & Co and it’s partners own CSCO
Stuart Frankel & Co and it’s partners own HPQ
Stuart Frankel & Co and it’s partners own MU
Stuart Frankel & Co and it’s partners own P
Stuart Frankel & Co and it’s partners own ZNGA

For Camilla Sutton
No disclosures

For Jeff Kilburg
Kilburg is long TLT
Kilburg is long SPXU

For Katie Stockton
No disclosures

For Brian Nagel
No disclosures

For Aaron Chew
(FSLR) I, Aaron Chew, attest that the views expressed in this research report accurately reflect my personal views about the subject security and issuer. Furthermore, no part of my compensation was, is, or will be directly or indirectly related to the specific recommendation or views expressed in this research report.

The research analyst(s) primarily responsible for the preparation of this research report have received compensation based upon various factors, including the firm’s total revenues, a portion of which is generated by investment banking activities.


CNBC.com with wires.

  Price   Change %Change
FSLR
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GTAT
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STR HOLD
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