Analyst Again Pounds on First Solar's Relevance

Axiom Capital’s Gordon Johnson is remaining negative on First Solar Inc. (NASDAQ: FSLR) as his comments made on CNBC were still very negative.  Johnson has been very vocal against the company for quite some time, even when shares were significantly higher and Johnson has said before the First Solar could end up being a total write-off.

The company’s cost of producing each watt is higher than what other solar power modules are selling for with roughly a $0.74 cost versus about $0.60 price.  He also maintains that other solar technology is more efficient.  A couple more First Solar notes:

After speaking with European customers the First Solar business is non-existent in Europe as the analyst thinks that First Solar may be shipping European product to the U.S..

From the earnings reports it looks fine, but the balance sheet will look bad with a huge increase in receivables.  His take is that this will be a big concern for investors.

First Solar shares were positive today on word of a new COO but after the analyst pounded on the stock again the shares have slid down to basically breakeven or into the red.  We now have shares down $0.02 at $14.73 but trading volume is very thin.

JON C. OGG