Dear Mike, Christopher, Joe, and Jerry,
This study hall had such professional and thoughtful teamwork between students. You all did an excellent job! Thank you for your contribution to the first TechniTrader® case study. Sincerely, Adrienne

Dear Students,
Jerry's laptop has a virus and he is unable to post final comments as he had hoped to. Best wishes, Adrienne

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DRAGON STUDY HALL - WEEK 5 REVIEW

Thank you for your final summary for week 5. Your conclusions that solar energy is still a young industry with plenty of challenges is accurate. FSLR has work to do and I agree that more media attention is needed to propel any of the solar companies forward.

It is worthy of a watchlist, however it faces challenges it must very soon address or get lost in the sea of new solar companies. It must establish a marketing strategy that is both extensive and innovative. It must also team with more big blue chip companies and generate higher revenues going forward.

You did a good job in your analysis and summary.

Martha
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DRAGON STUDY HALL - WEEK 5 ASSIGNMENT

#1. Mike
This is a dominant company in the Energy-Clean industry. Historical and expected sales and earnings growth are both strong. Institutional sponsorship is solid. The balance sheet has acceptable debt to equity and current ratios. Return on Invested Capital and Return on Equity are also excellent.

Industry challenges to name just two: (1) viable storage and (2) the environment. Viable storage can be viewed as a long term objective for all competitors. At this point Solar Energy is a supplemental source to the hydro grid. FSLR offers an alternative source to both residential and commercial applications. Relationships have been established with a group of project developers, system integrators and operators of renewable energy projects.It is building a worldwide footprint. The company has developed an approach to recycling solar modules that enables substantially all components of the modules, including glass and the encapsulated semiconductor material, to be treated and processed into new modules or other products.

From a technical standpoint:

03/13/09 - F7- quiet volume since late Nov. 08 to date. Small period of institutional accumulation in late Oct. early Nov. 08. Some distribution late Feb. 09. Mostly no institutional activity.
03/13/09 - F5 - Wide consolidation, if at all, since Oct. 08. Like the failing troughs on RateChange since Aug. 08.
03-13-09 - Technicator Bottoming - RSI and RS:SP500 both rising. TSV rose above the 0 line but negative in relation to RateChange. We need to watch for a tighter consolidation and better BOP, TSV, RateChange before we consider entering into a position.

LONG TERM PREREQUISITES - Hit and miss with more misses than hits. I’m thinking the hits have more substance than the misses. Over time the misses could become hits if management makes the right moves.

CONCLUSION - Definitely worth watching. Also, and of more importance, we are a long way from understanding this industry, this company and its competitors. We’ve barely scratched the surface and any decisions at this point would be very premature.
Mike

#2. Christopher
Based on the last 5 weeks of reviewing the company, I agree with the two challenges as Mike has indicated storage and the environment as well research and development. In my opinion, these challenges in order for FSLR to be a dominant contender, will need to be addressed sooner than later. Consumers will demand the whole package for a greener environment(organic panels), the ability to store energy during power failures and/or for off grid applications. Other companies do offer the ability for energy storage capabilities and off grid applications. I think also that more media attention is needed in promoting the awareness of this technology, the daily promotions you see in newspapers, magazines and television ads such as the advertising for automobiles for company exposure, then referring to the companies web site for further information on the technology. I think that if you are exposed to the details/information daily, regarding the benefits of solar power along with stronger Government rebate programs(financial incentives, to be cost competitive with current fuels/electricity) to assist in the purchase of alternate energy, the consumer may show more of an interest on how it benefits them personally, financially and for the environment.
Christopher

Mike and Christopher
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Hello Jerry

Reviewed your Week 4 summary and concur. I agree with your point regarding the market downturn and holders locking in profits and/or in my opinion panic selling or just the need for cash. The numbers I posted for week 4 assignment were from Nasdaq, OptionsXpress and TeleChart. If possible, please advise which prerequisites that your numbers from Scott trade differ so I can compare.

Thanks!

Christopher