Seriously, This Stock Is Headed for Single Digits
By Sean Williams
March 6, 2012
In December I warned that shares of solar panel manufacturer First Solar(Nasdaq:FSLR) were in danger of heading to the single digits, and most of my investment friends thought I was insane. Here we are just a few months later, and that CAPScall of underperform is already up 52% and more than halfway there.
I had predicted that things would get bad for the solar sector but had little clarity as to how bad. Now that I'm outside of the Fool disclosure policy's quiet period, as I had made a personal trade on First Solar in my account earlier last week, I can discuss my reasoning why I'm convinced First Solar's stock is bound to head lower.
The proof is in the pudding.
You couldn't coat enough sugar on First Solar's fourth-quarter results and fiscal 2012 guidance to cover up the ugly. The company reversed a year-ago profit and lost a staggering $4.74 for the quarter, including charges. The guidance looks even bleaker. --Continues