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First Solar Inc. (Nasdaq: FSLR) shot up 6.31% today to end the session at $28.81.  First Solar is a recent IPO and has performed very well up to now.  The stock is up 44.1% since its IPO date of 11/17/2006. 

Lets look at today’s analyst coverage:

• Piper Jaffray initiated coverage at ‘Outperform’ with a $37 price
• First Albany initiated at ‘Buy’ with a $36 price
• ThinkEquity initiated at ‘Buy’ with a $35 price
• Morgan Stanley initiated coverage with an ‘equalweight’ rating and a $28 price target.
• Credit Suisse initiated coverage with ‘outperform’ rating and a $32 price target. 

Except for Morgan Stanley everyone seems to be impressed with First Solar.  I wonder why?

IPO Underwriters

• Credit Suisse: Joint Lead Manager
• Morgan Stanley: Joint Lead Manager
• Piper Jaffray: Co Manager
• Cowen & Co: Co Manager
• First Albany: Co Manager
• ThinkEquity Partners: Co Manager

First Solar Inc. (Nasdaq: FSLR) Quarter ended April 1, 2006

• Revenue: $13.62 Million
• Net Loss:  $5.9 Million
• Market Cap: $2 Billion

Evergreen Solar (Nasdaq: ESLR) Third quarter ended September 30, 2006

• Revenue:  $36.2 Million
• Net Loss: 5.6 Million
• Market Cap: $519 Million

SunPower Corp. (Nasdaq: SPWR) Third quarter ended September 30, 2006

• Revenue: $65.3 Million
• Net Income: $9.6 Million
• Market Cap: $2.5 Billion

I don’t think a $2 Billion market cap is justified for First Solar Inc. and I am going to look to short it. 

* At the time this article was published I didn’t have any positions in the above mentioned stocks.

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