Investment Profile by Pink Investments

 First Solar

First Solar (NASDAQ: FSLR)

Although the solar and renewables sector has been absolutely hammered this year, the long-term potential of solar remains very solid.
 
And now that the shares of most public solar companies are trading so low, the prospect of mergers and acquisitions comes into play. The smart money - like Warren Buffett is sniffing around, looking for bargains. And that's why Buffett has just paid $2 billion to buy First Solar's Topaz solar farm. 

There has been much more positive coverage in the media of the solar industry, since news of Buffetts deal broke. However; despite the bullish stories, the solar industry still has a lot of clawing back to regain its highs of two years ago.
 
Despite good news for First Solar, the fact remains that oversupply issues will probably continue well into 2012. Chances are that by the third quarter of 2012 we will see enough significant demand to really move that backed-up supply. So, looking at the longer term picture, First solar seems to be good value at its current stock price.

Over the past few quarters, we've seen solar stocks fall hard, but for those with a longer term investment horizon, this is where some great bargains are to be had. During  2012, there will be a lot of consolidation in this sector. Many small solar companies will not survive and others will be acquired by the bigger players. A  new level of competition will be imposed that will weed out any remaining stragglers. But, the result will be a leaner, more competitive solar marketplace that will flush out some pretty significant opportunities.

First Solar will certainly be one of the survivors and longer term it should reap the benefits.
First Solar Inc is based in Tempe, Arizona. It manufactures solar modules with an advanced semiconductor technology, and is a premier provider of comprehensive photovoltaic (PV) system solutions.The company is delivering an economically viable alternative to fossil-fuel generation today. From raw material sourcing through to end-of-life collection and recycling, First Solar is focused on creating value-driven renewable energy solutions that protect and enhance the environment.  It designs and manufactures solar modules using a proprietary thin film semiconductor technology that is one of the lowest cost in the world.

In October First Solar inaugurated its second manufacturing plant in Frankfurt, Germany. Covering an area of roughly 50,000 square meters, the new plant will manufacture 250 MW a year of solar modules. This doubles First Solar's annual production capacity in Germany to 500 MW.

In November, the company announced that cumulative production had reached 66 million solar modules, capable of generating enough clean electricity to power approximately 2.5 million homes.
First Solar has come a long way since its first commercial production in 2002 and has grown to become one of the world's largest solar module manufacturers, with 36 production lines on three continents.

Also in November, First Solar announced that construction had commenced on the 10-megawatt AC Greenough River Solar Farm, located 50km south of Geraldton, Western Australia.Once completed, this solar farm will be the first utility-scale photovoltaic (PV) project in Australia and will bring significant investment to the local community. First Solar will supply the project with over 150,000 of its advanced thin film PV modules and provide engineering, procurement and construction services. Through the partnership with local contractor WBHO Civil, and in the sourcing of local products, the project is expected to generate millions of dollars for the City of Greater Geraldton's economy. Up to 150 people will be onsite at any one time throughout the construction phase, with jobs lasting for up to nine months. First Solar aims to maximise local hiring and enable the project to make a meaningful and lasting contribution to regional communities.

So, there is still huge demand for First Solar's products and expertise. Once the solar sector regains popularity with investors, the share price should get a huge boost. At the current price of under $34 the stock looks cheap - Its 52 week high was $175!

Buy First Solar (NASDAQ: FSLR) up to $40