Bill Gunderson

Data from Best Stocks Now App

Over the last five years FSLR has been going down by 14% per year while the market has been going up by 15%. How about the last three years? FSLR has been going down by 21% per year while the market has been going up by 15% per year.

But anyone can change. Let’s look at the last 12 months. The stock is up 121%. The market is only up 28%. So FSLR win’s the final round. But this isn’t a one-round fight. So next we have to look to the future of FSLR. And how do we do that? We look at valuation.

Valuation

FSLR is expected to earn $3.40 per share next year. This gives the company a reasonable PE of 17.6. But here’s the rub—the growth rate is expected to drop by 10% per year.

Data from Best Stocks Now App

Here is a company whose earnings are going the wrong way. FSLR is not growing up 15-20% per year as Best Stocks Now! require, it is contracting by 10%!

Stock Chart

The stock chart doesn’t look terrible.

But when I take off my oversized, blacked-out sunglasses and look at the big picture of FSLR, I remain on the bear side of this debate.

Data from Best Stocks Now App

One year does not a trend or stock make. In fact FSLR comes in at #1,045 out of the 3,732 stocks in my database. Lots of people buy solar stocks for the reasons besides making money. Bragging, for example.

But as for me and FSLR, I’ll pass. There are too many good stocks out there to waste our time on hoping that something that has been so dark for so long will finally see the light.

Data from Best Stocks Now App

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Bill Gunderson

Bill Gunderson is the CEO and Chief Market Strategist of Gunderson Capital Managment in San Diego, CA. He is also a professional money manager, former research analyst, author of Best Stocks Now. http://www.pwstreet.com