FSLR on a tear

I missed out on it. any lucky sob own this prior to yesterday’s surprise +150% announcement?

Not me. How could you have predicted a move like this though? That’s like looking at the percentage gainers list everyday and saying “Dangit I should of bought that yesterday”

a client came to me last week and said they wanted more solar exposure. i went back to the client on 10/30 with three ideas: ESLR, TSL, and FSLR. the client gave me the ok to buy ESLR and TSL, but said “no” on FSLR based on the high P/B. the client is kicking himself, and i actually look smart for once.

Previous quarter they had earnings surprise even higher as a %. Also, they were mentioned in one of Deloittes report for top 5 fastest growing companies in tech. Point is, there was some information to make a guesstimate that this would be a good growth stock. Predicted the ~35% one day gain? No. But maybe someone bought it thinking it would return x% and got lucky.

who would look at a growth stock like FSLR and look at P/B ratios???

p/b is obviously not the only factor in the decision, but profitability for many solar companies is low or negative, and very volatile, so p/b makes more sense than p/e or p/s. i think that was part of the level 2 curriculum.

P/B is functionally meaningless for these companies. ESLR’s lower P/B might just mean they paid too much in capex so far and thus have a bloated asset base. These are entirely speculative companies for which any sort of traditional valuation metric is useless. Now, P/eyeballs, on the other hand…

ha. I have a much better metric that is more accurate than your P/eyeballs. My magic eightball.