Should First Solar Give Up on China? $FSLR

fslrdark Should First Solar Give Up on China? $FSLR

David Phillips of 10Q Detective wrote up a great piece on why First Solar (FSLR) should abandon itsChina strategy.  The US solar behemoth made headlines a year ago when it announced it would work with the China government and local businessesto develop a massive 2GW solar farm to power up to 3 million homes.

Phillips suggests FSLR abandon it’s strategy in China for several reasons..

- the project has already stalled.. although the company says construction is expected to begin next year

- the costs will be too high and subsidies too low to provide a return

- it’s very difficult to compete in China as China favors its own.. something the US should learn from

- FSLR would have to share its proprietary technology, opening uprisk of Chinese stealing proprietary manufacturing processes.  Phillipshighlights Vestas Wind as a prime example of this

Read the full article here

While shares of FSLR have looked increasingly bullish in recentweeks, it’s a bit overstretched in the short term and may need to pullback to the 132 – 138 range which provide an area to add shares in myopinion.

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First Solar (FSLR) Should Give Up On China Strategy