Powerhouse Stock Going Strong
In an otherwise lackluster market, it’s great to see what I call a “powerhouse” stock. This is a business that’s growing by leaps and bounds, with a stock price that’s doing the same.
There are a lot of growing businesses in the current market, but many of these stocks are not getting recognized by investors. This is mainly the case because investors aren’t much interested in small, speculative issues at this time.
The powerhouse stock I’m referring to is First Solar, Inc. (NASDAQ/FSLR). First Solar, based in Phoenix, manufactures solar modules with an advanced “thin film” semiconductor process that helps reduce solar electricity costs. The company currently sells most of its product in Germany, where the adoption of solar energy is becoming widespread.
I wrote about this company extensively in this column earlier in the year.
In its second quarter ended June 28, 2008, First Solar’s revenues grew to a substantial two hundred and sixty-seven million dollars, up from revenues of almost one hundred ninety-seven million dollars generated in the first quarter of fiscal 2008, and up from revenues of just over seventy-seven million dollars generated in the comparable second quarter last year.
Net income was close to seventy million dollars, or $0.85 per fully diluted share, compared to net income of almost forty-four and a half million dollars, or $0.58 per fully diluted share, generated in the second quarter of 2007.
It’s great to have a domestic solar energy producer that’s generating outstanding growth and wealth for stockholders. First Solar recently announced plans to expand its operations in Perrysburg, Ohio, by adding at 134 jobs and 500,000 square feet of manufacturing, research and development, and office space. When complete, this expansion will increase the company’s total annual productive capacity to 192 megawatts.
Over the last 12 months, this stock has appreciated to approximately $300.00 per share from $100.00 per share. This stock’s been very volatile, but it’s remained in an upward trend even with the market in a bear cycle. I have a strong feeling that First Solar will remain a powerhouse for many years to come.