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.