First Solar (FSLR) really got hammered, didn’t it? What’s the reason? Is it just a small hiccup in their awesome growth period? Or has the luster dulled on their sunny future (pun intended)? Initially I was thinking that this was again a knee-jerk reaction by the market to what I thought was not too bad of an earnings report. I wanted to write in support of this company and present a reason to identify the current stock price as a bottom, but on further research I’m not so sure.
Reading, comparing and documenting fundamentals on this company was giving me a headache – not my cup of tea. One of the few fundamentals that I like to look at is revenue growth. I found a chart on ycharts.com (a pretty cool site) that actually gave me the quarter-over-quarter revenue growth rate. Of course, they didn’t’ have this quarter’s data yet so I mimicked the chart in Excel adding this quarter. It’s shocking to say the least, don’t you think?
So has FSLR hit a bottom? The charts never lie and only time will tell. Regardless, I really like it when a stock makes a move like this. My reasoning is this: in a few days we will be able to tell if this will try to fill the gap, consolidate or move lower. The huge gap added a bit to the historical volatility of the stock and some to the IV of the options thus giving us really good premium.
Oh, by the way – this is a very good example of why we stay away from stock until after earnings. During earnings season I like to lean towards ETFs.
Thanks for reading and your comments/suggestions/corrections are always welcome.
- Jeff
