First Solar, Inc. (FSLR): Short Squeeze Victim or Fundamental Long Play?

Investors may want to research other companies in the sector before taking a position in First Solar.  LDK Solar Co., LTD (NYSE:LDK) is a competitor engaging in the production of photovoltaic products and development of power plant projects.  LDK Solar has not fared as well as First Solar, with the stock down 13.19% YTD.  Value investors may want to take a look at NRG Energy, Inc. (NYSE:NRG).  Warren Buffett’s MidAmerican Holdings has bought into NRG solar projects, although Berkshire Hathaway, Inc. (NYSE:BRK.B)  eliminated its previously-held position in the Company around 2010.

In conclusion, it is unclear whether First Solar, Inc. (NASDAQ:FSLR), and perhaps the solar industry as a whole, is headed.  Some hedge funds are making a long play in the Company, while others are betting on another downturn.  At any rate, investors looking to the initiate a position need to be ready for a choppy and volatile ride.

Disclosure: none