Stocks from the Sun (Part 1)
It does not take any significant effort to make a case for clean energy generation. However, can investors allow their fancies to dictate which stocks they buy? A widespread issue with new technologies is the paucity of profits. First Solar stands out as an oasis in this desert of cash losses, with a rare net income performance in 2006. Here is a company whose stocks you can trust!
First Solar has tripled revenues in 2006 (Annual Report, 2006). It has more than doubled its production capacity during the year, with a new plant in Germany. The current trend in dollar and Euro relative values adds hugely to the business potentials of a U.S. enterprise with a concrete base in the heart of the European Union.
First Solar has proprietary technology which gives it an unbeatable and down-to-earth competitive advantage of lower costs. This is a time when regulators and economic advisors have started questioning the indirect subsidies which polluting energy sources have enjoyed since the last century. Jibes at the costs of solar energy are bound to feel blunt as a result. However, Solar Power does not depend on doles to contribute cash: it is simply able to lower the cost of solar power through its special thin films. It does this while the company’s gross margins have climbed to over 45%!
Stocks of First Solar represent truly amazing profits and appreciation, regardless of the time frame in which you think and invest. It is worth pausing in these paeans of praise, and reflecting on the role of solar energy in the future of planet earth.
Business Values for Stocks from the Solar Energy Sector
Most environmental conservation initiatives run aground when it is time to talk numbers. The revenues and jobs, apart from the products and services, which are generated by industrial development, cannot be cut off. The Kyoto Protocol crashed and died a premature death because the United States and the rest of the first world could simply not let go of its financial dominance of the world. There is no joy in having a clean planet if we lose our jobs and security in the process! Imperatives to keep the wheels of industry turning have prevented the world from saving its own self from destruction!