The Time Is Right For Solar Stocks

The solar industry may be near a major pivot low and nearing a turnaround. After months of sharp downward pressure on stock prices, solar players like First Solar, Inc. FSLR, SunPower Corporation SPWRA and Trina Solar Limited (ADR) TSL are seeing buyers return. This reversal is being linked to positive comments from a Goldman Sachs Group, Inc. GS analysts. While the price target was cut from $150 per share, a six month price target was given at $90. The comments from this analyst go to the ideal that the strongest solar players will survive. First Solar is one of them. The idea of solar stocks being a good long term buy is not surprising. While margins have collapsed dramatically over the last year, stock prices have fallen faster. First Solar dropped from a high of $175.45 in 2011 to a recent low of $52.32. This is a decline of 70%. For those with a longer term outlook, for those that believe the strong will survive the flush out and margins will resume, the best of breed solar stocks are a obvious choice at current valuations. If the Goldman Sachs analysts is anywhere close, this could be the swing trade of the year. This Chief Market Strategist agrees. Gareth Soloway InTheMoneyStocks.com