*Sell First Solar …. Needs to be repriced….Don’t catch the knife yet.

First Solar, Inc. (SHORT IT)

(Public, NASDAQ:FSLR)

Though, First Solar is in a very hot sector, semi conductors which is in a bullish mode. But the stock trades at a very high P/E ratio. It is almost 92% overbought. We recently broke the triple bottom at $104. This opens door for the next support level at around $80. Fet out of First Solar or short sell some, if you have the ka-ching. Get out of the quagmire as quickly as possible. Don’t struggle there and get buried.

From the fundamental point of view : the stock now trades at a P/E of around 125.5 which is too high even for a very strong growth stock. The company recently announced its quarter results.

First Solar posted profit of $44.4 million, or 58 cents per share, compared with a loss of $2.5 million, or 5 cents per share, for the same quarter in 2006.

The 2007 quarter’s results included a one-time income tax benefit of $39.2 million, or 51 cents per share.

This represents that the company made 7 cents a share where the analysts expected a 3 cents per share. But that is not enough to keep a stock trading at these shockingly high levels. The stock is in dire need of repricing and it’ll undergo the repricing in short term. Third quarter in terms of stock price doesn’t look rosy.

We are short FSLR at $106 and were waiting for confirmation of the break of triple bottom at $104…we have it confirmed now.

Hope that helps in your trades.

YOUR ADARSH.