On April 30, I dumped FSLR at 188. At that time, Wall Street was all over the stock.
I wasn't. I said this:
I just can't get a handle on FSLR's cadmium leakage issue. In their annual report, they only had a current accrued warranty liability of $4 million, and excluding their largest customers, all other customers combined are less than 10% of sales, so the replacements of panels is obviously not a material issue, but I needed an excuse to sell, so I took it.
Knowing when to sell, is as important as knowing when to buy.
Now today, we heard a ton of cautious commentary on FSLR, and this number closed down 8.88 at $121.54.
Today Jeffries cut the ratings of the solar stocks.
Yesterday it was Merrill Lynch/BAC cutting FSLR, along with Deutsche Bank.
A few days before that Credit Suisse put out a sell on FSLR.
Last week, Barron's questioned FSLR's accounting---it needs to be questioned.
Piper Jaffray and Soleil were also cautious.
Where were these highly paid shills for the six weeks FSLR hung at 180-200 in May and June? Why couldn't they be cautious then--or tell you to sell?
As you know, I think oil is going higher. And it is.
And now I'm starting to look at First Solar again. But I need to watch it trade a little bit more. It's just that I'm just starting to watch it more closely.
Because the market will tell you when it is time to buy.
Not Wall Street.
Because that's just how Wall Street works.