First Solar Inc. (FSLR)

Guidance says tariffs will end in July, but there would be tariff retaliation from China. Not excited by this.

Stock is -10% since December. They face a tough comp in their coming quarter. At best, they will see single-digit revenue growth and face supply disruption in 2026.

The US is pushing away from solar energy. He bought it because they were a US-domestic supplier of panels. There was an oversupply in China which drove prices down. He was counting on the domestic supplier being protected from foreign producers. This didn't happen. Today, there is a Senate proposal to end tax incentives for solar, and those shares are sliding. He sold shares in February--he saw it coming. It's hard to admit defeat, but you have to.

Would recommend holding company. Politically - might not be as good with Trump administration. Dependent on subsidies from government (reason for government concern). 

Is the only solar company based in the US where it has many plants. Didn't deserve to sell 10% today, because Trump won't support green energy. In fact, he would buy.  The US needs a lot more energy, and half of the new power added to the grid is solar. 

Was a past pick of his. Shares have been bumpy for fears that Trump will impose tariffs on solar panels and he doesn't like green energy, though there's bi-partisan support for solar energy. FSLR is the only real option for the US, so FSLR is a fine position. Shares will be bumpy thought. Buy for the long term.

EPS of $3.25 beat estimates of $2.66; revenue of $1.01B beat estimates of $940M. Guidance was for EPS $13.00 to $14.00 (unchanged), vs estimates $13.60. It was a good quarter, and the company remains debt-free with $1.2B cash and strong EPS growth prospects over the next two years. However, election uncertainty does seem to be impacting customer bookings, and this may hurt the next two quarters until solar policies are clarified. But fundamentals ex-this factor are quite good, and it remains the leader in the sector, for sure. 
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He recently bought it. Are a domestic producer of solar panel in the U.S. so tariffs protect it and subsidies help it. They have a two-year backlog of orders.

Up 54% in May, the S&P's top performer. His favourite solar play because it's profitable and the largest US manufacturer with lots of exposure in industrial-scale projects. They reported a monster earnings beat, but were greatly help by Biden announcing tariffs of China's solar cells. This stock has more room to run.