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.


  • 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
Spain Solar Legislation Threatens Industry: First Solar (FSLR) OK, Others May Not Be So Lucky (FSLR, SPWR, YGE, STP)

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