FSLR blows away estimates two Q's ago, then beats again, missing on revenue due to a two day miss to have the revenue counted in the quarter. Most of the money for alternative energy credits from the $800 billion dollar rescue package is coming due early 2010 and FSLR will be a big beneficiary. The market for FSLR's product is supposed to double by 2013. And the stock is down from $190 to $118?
Assume this stocks PE drops to 12, you are assuming an earnings of $5 a share. That is highly unlikely. And while FSLR has competition it is still a leader. That is why 75% of German solar panels are form First Solar. They are still ahead of their competition, which is going to consolidate for the next few years. Simply to reduce supply and increase margins. Great for First Solar.
One other option is to look for key acquisition targets with a small market cap of 50-100 million. And hope they are on the short list to be bought out.