First Solar Sidesteps Silicon Supply Worries

Silicon supply concerns have been affecting companies using the material to make solar cells.

First Solar largely avoids the issue, since its panels are based on a proprietary technology that uses cadmium telluride.

Even so, the stock wasn't immune to earlier weakness in solar stocks. It fell 49% from its late December high to its base's low a month later.

While that's a steep drop, leading stocks can fall twice as much or more than the general market during a correction. The Nasdaq fell 25% in the recent bear. So the solar stock's decline isn't too shocking.

The stock cleared a low handle in late March and surged 22% the next week. In early April it started a high handle with a buy point of 291.59. It rose past that level last week, but is still within 1% of the buy point.

The Phoenix-based solar module maker, which went public in November 2006, lost money the prior five years. It turned a profit in '06 and '07 and is expected to grow earnings 77% this year and 102% in '09.

First Solar's Q4 profit, announced Feb. 13, soared more than 500%, beating estimates. Sales also beat forecasts. The company boosted its sales outlook for '08.