November 1, 2008
Looks like our next president is going to be Obama! CNN says he is headed for a big win - already having won PA and ahead in OH.
And Jim Cramer pointed out that renewable energy companies will do much better under Obama - as he plans to spend $150 billion over the next 10 years toward this area.
Cramer's top pick in this scenario - First Solar (FSLR)
FSLR reported very good Q3 earnings last week and have gained around 45% since then. So is it too late to invest? Have we missed the bus? I don't think so.
FSLR has seen a 52 week high of $317 and although I am not predicting it is going to near that soon - but I certainly see it headed there and beyond. The P/E ratio is high but FSLR has a good cash flow (which is very important for the next year or so). The margins are excellent as well and the average analyst recommendation is Overweight.
First Solar was founded in 1999 and originally backed by the investing arm of the Walton family (of Walmart fame). FSLR boasts of a cutting-edge thin-film technology and has a lower per unit production cost as compared with its competitors. Outside of US (OH), FSLR also runs operations in Malaysia and Germany. It is managed by a very efficient and frugal management which has a very cost-oriented management by objectives (goal-oriented) approach.
So, when do your research this is one stock that should certainly be of some interest.
Related Stocks: LDK, STP, SOL, SOLF, CSIQ, CSUN, SPWRA, YGE
For ETF lovers: TAN
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