First Solar (FSLR) Breaks Out To 52WK High On Goldman Sachs Buy, Vietnam Expansion

First Solar (FSLR) made a key move yesterday.  Just a few days ago I posted:

“With an MOU signed for the big China Ordos project and news that AV Solar will finally get off the ground, the pieces are beginning to fall into place for FSLR.  The question is will the stock follow suit?  FSLR has been stuck in a base now for more than two years.  The key for me is right around that 155 level where the stock failed twice last year.  A clean break above that level could signal a sustained run in FSLR for the first time in a long time.”

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Yesterday FSLR cleared that important 155 level, closing at a new 52 week high after Goldman Sachs posted a Buy recommendation and news of a $1 billion manufacturing plant in Vietnam hit. 

Goldman believes solar panel makers will avoid a hard landing this year and believes the industry will expand 13% as prices fall while governments continue to invest in solar.  “While the path for investors is unlikely to be smooth, the opportunity to own long-term solar leaders” at current prices is “appealing,” said Goldman analyst Mark Wienkes.  He has a Buy recommendations on First Solar (FSLR) and believes it could approach the $190 level within the next 6 months. 

News also hit yesterday that FSLR has been granted an investment license in Vietman for a billion dollar thin film solar manufacturing plant.  They first announced back in October they would manufacture in Vietman and apparently have already started work on the plant that will be operational by the middle of the year with four manufacturing lines capable of producing 238MW/year.  The 2nd phase will begin in 2013 with the entire facility completed by 2015.  Back in October they also announced they would build a new plant in the US, so I think we can expect news on where that plant will be built soon.

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