GO
Loading...

Green Trade: Making Sense of First Solar’s Upgrade

In celebration of Earth Week, the Fast Gang has been trading the business of green.

And on Wednesday our pros were taking a hard look at First Solar after Cantor Fitzgerald upgraded the stock to ‘Hold’ from ‘Sell.

But just because the stock was upgraded, analyst Dale Pfau tells us, “I’m not positive on the solar panel industry at all – I think there’s a long road of negative things to come.”

His call has everything to do with valuations. With the stock down more than 30% ytd and trading in the low 20's, Pfau sees potential for consolidation.

With subsidies drying up and other challenges facing the industry, Pfau thinks the low share price could bring M&A into play.

However Pfau also tells us there’s a bear case. “First Solar could squander their cash reserves and the stock could go lower from here.”




______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment, but not have it published on our Web site, send those e-mails to fastmoney@cnbc.com.


Trader disclosure: On Apr 18, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Tim Seymour is long BAC; Tim Seymour is long INTC; Tim Seymour is long SBUX; Tim Seymour is long FCX; Tim Seymour is long TSL; Jon Najarian is long CALL SPREADS IN AAPL; Jon Najarian is long CALL SPREADS IN GS; Jon Najarian is long CALL SPREADS IN JOYG; Jon Najarian is long CALL SPREADS IN SBUX; Jon Najarian is long CALL SPREADS IN GMCR; Jon Najarian is long DDMG; Jon Najarian is long CME; Jon Najarian is long CBOE; Jon Najarian is long CGIX; Anthony Scaramucci is long GS; Anthony Scaramucci is long JPM; Anthony Scaramucci is long MS; Anthony Scaramucci is long INTC; Anthony Scaramucci is long IBM; Dan Nathan is long AAPL Jan 450 Puts; Dan Nathan is long BAC APR AND MAY 7 8 PUTS; Dan Nathan is long JPM APR 42 PUTS; Dan Nathan is long MS MAY 16/14/12 PUTS; Dan Nathan is long XLF APR 15 PUTS; Dan Nathan is long YHOO MAY 60/57.5 PUT SPREAD; Dan Nathan is long WMT JAN 20/25 CALL SPREAD

For Charlie Bobrinskoy
Charlie Bobrinksoy’s firm (Ariel Investments) is long C
Charlie Bobrinksoy’s firm (Ariel Investments) is long MS
Charlie Bobrinksoy’s firm (Ariel Investments) is long GS
Charlie Bobrinksoy’s firm (Ariel Investments) is long JPM

For Dale Pfau
Investment banking (next 3 months): Cantor Fitzgerald and/or its affiliates, expect to receive, or intend to seek, compensation for investment banking services within the next three months from all of the companies referenced within this report: FSLR
Lead or Co-manager: Cantor Fitzgerald and/or its affiliates, has not acted as lead or co-manager in a public offering of equity and/or debt securities for First Solar, Inc. within the last 12 months FSLR
Cantor Fitzgerald and/or its affiliates has not received compensation for investment banking services in the last 12 months from FSLR
Cantor Fitzgerald and/or its affiliates is a market maker in FSLR

For Brian Modoff
Deutsche Bank (and/or affiliates) owns 1% or more of any class of common equity securities of this company: QCOM
Deutsche Bank and/or its affiliate(s) has received non-investment banking related compensation from this company within the past year: QCOM
This company has been a client of Deutsche Bank Securities Inc. within the past year, during which time it received non-investment banking securities-related services: QCOM
The research analyst or a member of his/her household an officer, director, or advisory board member of this company: QCOM

For Shawn Reynolds
Shawn Reynolds is long APC
Shawn Reynolds is long PBT
Shawn Reynolds is long BKKN
Shawn Reynolds is long SLB
Shawn Reynolds is long HAL
Shawn Reynolds is long PXD
Shawn Reynolds is long XTA

CNBC.com with wires.

Symbol
Price
 
Change
%Change
FSLR
---

Featured

Contact Fast Money

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET

Halftime Report