Shares of First Solar (FSLR) soared 12% yesterday to close over $150 per share. The stock has been on an extreme roller-coaster ride over the past few months. In June, it was over $300 a share and by November it got down to just $87. Despite the high volatility, I think First Solar is a strong buy.
The reason for First Solar’s rally yesterday, along with the rest of the solar industry, was news that China will launch a new solar subsidy program. I see this as a very powerful endorsement of the solar industry. The Chinese government said that solar projects larger than 50 kilowatts of output are eligible for a subsidy of about $2.93 per watt.
If you don’t own any alternative energy companies, then I recommend shares of First Solar.