First Solar (FSLR): Spanish Risk Minimal...For Now

Yesterday, when Spain came forward with a draconian solar subsidy cut proposal, solar stocks tanked. Of course reduced subsidies anywhere are a negative for an industry that thrives off of these policies. First Solar’s historical exposure to Spain has been low, however, so the stock quickly rallied.

Specifically:

  • In 2007, FSLR received 91% of its revenue from Germany
  • Subsidy risk in Germany has cooled of

On word of the Spanish subsidy proposal, FSLR dropped to from $270 to near $260. By the end of the day, it was back above $270 and is now up to $273 in early trading today. In fact, Deutsche and others continue to bang the drum on FSLR as they see the behemoth as a safe harbor from the Spanish uncertainty.

Based on FLSR’s historical performance, yesterday’s recovery makes sense. But here’s our question for FLSR bulls: How much of the huge growth FSLR investors are counting on (see the 30X revenue multiple) is supposed to come from Spain?

See Also:
Latest First Solar (FSLR) News and Analysis

Spain Solar Subsidy Proposal Crushes Yingli Green Energy (YGE), Solarfun (SOLF), First Solar (FSLR), et al
(YGE, SOLF, STP, FSLR, SPWR, WFR)
Spain Solar Legislation Threatens Industry: First Solar (FSLR) OK, Others May Not Be So Lucky (FSLR, SPWR, YGE, STP)

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