What I think the market is failing to take into account is that First Solar is upgrading its manufacturing capacity to a product that will be lower in cost and higher in efficiency than the current version. And a strategy to sell components to other developers will lead to a faster sales cycle and more predictable results each year. If the solar industry keeps growing at double digits and First Solar can continue to make a product that can generate strong margins and profitability long term, the sock will be a great value buy. Even a small profit of $ per watt on GW of capacity would imply the stock is trading for less than 15 times earnings after pulling out net cash. And with an opportunity to grow to GW by 2020 and potentially generate even higher margins, I think this stock will be a steal for long-term investors.
Moody's issued a special comment paper focusing on Basel II amendments already introduced, as well as statements from the Basel Committee on Banking Supervision ( ). T he paper highlights enhancements relating to a bank's trading book, securitization, and counterparty credit risk. In particular, the recommendations involve strengthening Tier I capital, introducing tougher liquidity standards, including counter-cyclical provisioning, discussing systemic risk provisions (which is becoming popular in the United States), and including leverage ratios as a supplementary measure. Moody's also believes that proposed Capital Requirement Directive changes to the quality of capital and securitization were also a positive step. In addition, the paper mentions that “One important amendment calls for stricter operational requirements for credit analysis for banks holding securitisation exposures. We believe that the increased requirement for credit analysis for banks holding securitised exposures is going to be an important element of improved risk management, and should ensure that only banks with the necessary information and analytical tools hold securitised products.” Of course, it could also mean that less securitization takes place. While this may be the intended result, the unintended consequence of reducing the efficient flow of capital, or not allowing those who want to off-load or bear risk access to the vehicles they need, will also need to be considered further - either now or later.
About Us · Press Center · Resources · Advisory Services · Free Newsletters · Free Reports · Contact Us · Advertise With Us · Employment · Privacy · Terms and Conditions · Disclosures and Disclaimers · Media Sites