Energy

Cramer's First Pick For Five Years Out: First Solar (FSLR, SPWR)

On tonight’s MAD MONEY on CNBC, Jim Cramer said he wanted to review some picks that you might want to own with a 5-year time horizon for the future.  He wants to look beyond the current markets and the volatility, so he wants to look at earnings visibility for a multi-year period.  So that way he can look past a major market swing or against an analyst panicking over a stock drop.  He has three picks that have 5-years worth of visibility and his first pick is as follows:

  • FIRST SOLAR (NASDAQ:FSLR) is major, despite today’s 7% sell-off; up over three-fold since his recommendation in March 2007.  This one avoids the silicon wafer shortage in solar power.  He likes the contracts that are signed for over $6 Billion out to 2012 and that is now a baseline for the next five years.  He also likes that they produce for less and increase capacity.  Even over $200, Cramer said it trades at 24-times 2010 earnings.  He thinks that the forecasts may end up being too low.

In a call-in from a viewer, Cramer said his second favorite solar power stock is SunPower Corp. (NASDAQ:SPWR).

Here were Cramer’s TOP Picks for 2007.
He also recently stuck with the new "Horsemen of Tech" into year-end.
He’s even reviewed some Warren Buffett stock picks.

Here is our own open email distribution list where we highlight some other Cramer picks, buyouts, spin-offs, break-ups, merger-arb spread, and other special situations.

Jon C. Ogg
December 17, 2007

Jon Ogg can be reached at [email protected]; he produces the SPECIAL SITUATION newsletter and he does not own securities in the companies he covers.

Want to Retire Early? Start Here (Sponsor)

Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?

Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.

Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.